Informs Annual Meeting 2017

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INFORMS Houston – 2017

3 - Design of Internet of Things (IoT) Framework for Agricultural Sector (IoT-Agro) Pachayappan Murugaiyan, Pondicherry University, Tamilthai Nagar, Puducherry, 605001, India, pachayappanvn@gmail.com In this paper an Internet of Things (IoT) framework for agricultural sector (IoT- Agro) in particular for sugar cane industry is proposed. IoT-Agro can best control and monitor the growth environment of sugar cane, achieve high and stable yield of sugar cane, monitor the pesticide level in crop, water level and soil moisture and also control the cultivation wastages. Based on proposed IoT-Agro framework a new collaboration model between the farmer (producer), mills (production) and government is designed. The proposed collaboration model will create a live communication platform and instant decision making flexibility between the decision maker’s viz. farmers, mills and governments agencies 4 - Supplier Opportunistic Behavior in Post-disaster Agriculture Supply Chain Hsin-Tsz Kuo, Doctoral Student, National Taiwan University, Taipei, 10617, Taiwan, d01741003@ntu.edu.tw, Jiuh-Biing Sheu This paper address the causal relationships among supplier opportunistic intention, supplier power asymmetry, magnitude of disaster, and its antecedents in a post-disaster agriculture supply chain. We proposed a research model that supplier power asymmetry can moderate the relationships between supplier opportunistic intention and supplier attitude of competitor influence. 362B Finance Methods Sponsored: Financial Services Sponsored Session Chair: Christoph Frei, University of Alberta, Edmonton, AB, T6G 2G1, Canada, cfrei@ualberta.ca Co-Chair: Abel Cadenillas, University of Alberta, Edmonton, AB, T6G 2G1, Canada, abel@ualberta.ca 1 - Bail-ins and Bailouts: Incentives, Connectivity and Systemic Stability We analyze the stability of an interbank network, in which subsidized bail-ins or public bailouts can be coordinated to stop financial contagion. Banks are willing to contribute to a subsidized bail-in only if the social planner’s threat to not bail out insolvent banks is credible. We characterize the optimal bail-in plan and show that the socially preferable network structure shifts from densely connected networks for small shocks to sparsely connected networks for large shocks. The presence of this resolution plan affects interbank trading decisions and we show that banks aim to arrive at a network structure that is “too interconnected to fail,” thereby forcing the government to a public bailout. 2 - Optimal Contracting and Consumption/Portfolio Selection with Limited Commitment Hyeng Keun Koo, PhD, Ajou University, Suwon, Korea, Republic of, koo_h@msn.com Recently there has been a steady growth of literature on optimal contracting/equilibrium with limited commitment. In particular, there is now a newly emerging literature on contracting theory with limited commitment in continuous-time. There has also been a literature on consumption/portfolio selection with liquidity(or borrowing constraints). I will explain the connection between the two strands of literature and discuss new results relevant to the two strands of literature. 3 - The Optimal Band of Government Stabilization Fund Abel Cadenillas, University of Alberta, Department of Mathematical Sciences, Edmonton, AB, T6G 2G1, Canada, abel@ualberta.ca, Ricardo Huaman-Aguilar To mitigate the negative consequences of a crisis, an instrument of fiscal policy is the stabilization fund, which is a mechanism to save money in the good economic times to be used in the bad economic times. We present a model to study the optimal management of a stabilization fund. 4 - Managing Counter Party Risk in Over-the-counter Markets Christoph Frei, University of Alberta, Mathematical and Statistical We study how counterparty risk affects trading decisions in over-the-counter markets. Banks first manage their default risk, and then decide on credit default swap (CDS) trading volumes to hedge against an aggregate risk factor. Our model predicts that perfect risk sharing is only done between safe banks, while riskier banks maintain diverse post-trade exposures. The costly actions exerted by banks to reduce their default risk are not socially optimal. Banks may choose to reduce TB55 Benjamin Bernard, UCLA, Los Angeles, CA, United States, benbernard@ucla.edu, Agostino Capponi, Joseph E. Stiglitz Sciences, CAB 621, Edmonton, AB, T6G 2G1, Canada, cfrei@ualberta.ca, Agostino Capponi, Celso Brunetti

their default probabilities below the socially optimal level, depending on trade size limits and costs of risk management. The model produces new empirical predictions which are borne out by data from the CDS market.

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362C Recent Advances on Facility Location and Network Design Problems II Sponsored: Location Analysis Sponsored Session Chair: Takamori Ukai, Keio University, Yokohama, 2238522, Japan, ukai@ae.keio.ac.jp 1 - Optimal Management Model for Road Maintenance by City Government Mondo Sugiyama, The University of Tokyo, Ce408. 4-6-1, Komaba, Meguroku, Tokyo, 1538505, Japan, mondo@iis.u-tokyo.ac.jp, Yudai Honma For the local government, the road maintenance and management is one of the important duties. The works of road maintenance lasts for many divergences including the identification of the repair points and the real repair, and the road total distance is also enormous. Therefore, effective scheduling planning of road maintenance is essential. In this study, the possibility to apply the scheduling model in the field of operations research to the road maintenance and management is examined. Based on the real road repair data in Japan, more effective repair scheduling plan will be proposed. 2 - Reliability Network Design for an Aircraft Door Management System Lukas Schaefer, University of Edinburgh, JCMB, Room 6324, The King’s Buildings, Edinburgh, EH9 2DG, United Kingdom, lukas.schaefer@ed.ac.uk The door management system (DMS) is a safety system in an aircraft to check if all doors are properly closed and the cabin is correctly pressurized. As for every critical system in an aircraft, it has to meet safety regulations (redundancy, reliability) and should be designed optimally in terms of weight, costs, power consumption or reliability. This talk will introduce a new MILP formulation of the optimal redundancy and reliable design for a DMS. Furthermore, it will present an exact solving method for the redundancy problem and a heuristic for the reliability/redundancy problem. 3 - Big Data Location Analytics – Predicting Purchase Location with Mobile Location Data Karthik Babu Nattamai Kannan, PhD Candidate, IT Management, Scheller College of Business, Georgia Tech, 800 West Peachtree NW, Atlanta, GA, 30308, United States, karthikbabu.nk@scheller.gatech.edu, Sridhar Narasimhan We work with a leading national mobile carrier in the USA to explore how its customers choose the location of brick-and-mortar store to purchase or upgrade wireless service. We explore how understanding people’s travel patterns is helpful in choosing the optimal number of stores in a given market based on maximum coverage model. We explore literature on firm expansion and franchising to develop a machine learning based heuristic solution procedure (work in progress). 4 - Ratio of Visible Green Associated with Pedestrian Location and Visual Line Takamori Ukai, Keio University, 3-14-1, Hiyoshi, Kouhoku-ku, Yokohama, 2238522, Japan, ukai@ae.keio.ac.jp, Osamu Kurita, Yuki Hirasawa Green gives people relaxing, comfortable and some positive effects. Ratio of visible green is an index that represents the ratio of greenery part to the entire vision field. Although some municipalities in Japan have employed this index to their policies, there are some differences between measuring methods that municipalities have employed. Furthermore, it is time consuming to measure it by taking photographs, because one have to go to the site.Therefore, it is meaningful to propose new convenient method for estimation. In this talk, we define ratio of visible green as the ratio of solid angle of trees to unit semi-sphere and propose estimation method regarding trees as spheres.

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