Informs Annual Meeting 2017

TE44

INFORMS Houston – 2017

TE44

TE45

360C Operations Management/Marketing Interface Contributed Session Chair: Pin Zhou, HUST School of Management, HUST, Wuhan, China, zhoupin@hust.edu.cn 1 - Competitive Equilibria in Product Plus Service Solutions with Customer Self Selection and Taste Heterogeneity Arvind Sainathan, Nanyang Business School, S3-B2a-03, Nanyang Business School, 50 Nanyang Avenue, Ntu, Singapore, 639798, Singapore, Asainathan@ntu.edu.sg Many firms do not just sell products or services but solutions, integrated combinations of products and services. We analyze the competition between two solution providers (SPs) who sell to taste-heterogeneous customers. Type 1 customers are solution-based and consider the entire solution. Type 2 (Type 3) customers are product-first (service-first) and are primarily concerned about product component(s) (service component(s)). We first model customer self- selection in a novel way through an optimization problem. We then characterize different types of competitive equilibria between the SPs. We find that customer composition plays an integral role in determining the nature of equilibrium. 2 - Component Procurement Contract for an Assembly System with Random Capacity Xinyan Cao, University of Wisconsin-Milwaukee, 3202 Maryland Ave, Milwaukee, WI, 53202, United States, xinyan@uwm.edu, Xiang Fang We study a decentralized assembly supply chain under supply uncertainty. In the decentralized assembly supply chain, one assembler assembles a set of components each produced by a different supplier into a final product to meet an uncertain market demand. Each supplier faces an uncertain production capacity. The assembler and the suppliers adopt a so-called Vendor-Managed-Consigned- Inventory contract. We formulate the problem as a two-stage sequential game. We analytically characterize the equilibrium of this game, based on which we obtain several interesting managerial insights. 3 - Dynamic Production and Pricing Decisions in the Presence of Snob Effect Snob effect is a phenomenon where the more it is difficult to obtain a product, the higher its utility will be. “Hunger-marketing” is known as a marketing strategy utilizing this effect, in which a firm strategically makes a product shortage. Analyzing a monopoly model to determine price and output levels over multiple periods in the presence of snob effect, we derive the condition under which this type of strategy becomes optimal. 4 - Allocation and Sizing of Fast Charging Station in High-way Network Yue Wang, Dr., National University of Defence Technology, NVDT, Kaifu Area, Changsha, China, wangyy0115@hotmail.com, Jianmai Shi, Yajie Liu Adequate charging station distribution is the necessary part to promote Electric Vehicles(EV). Different with refuel stations, the infrastructure is costly with limited service capacity because of the long charging time. Meanwhile, in optimization of location and scale of the charging station, the limited range of EVs and the selection process of drivers must be taken into account. This paper described the behavior of driver and station to illustrate how the demand distribute in road network. Then developed a heuristic algorithm to optimize the location and size of charging stations . A practical case of Hebei highway network in China is also studied to test the efficiency of algorithm. 5 - The Adoption Time of Production Commonality and Consumer Deliberation Pin Zhou, School of Management,HUST, Wuhan, China, zhoupin@hust.edu.cn, He Xu We study the impact of commonality strategy and consumer deliberation on the optimal product line design in multiple quality attributes. When the firm adopts the commonality strategy to maximize the profits ,there is a trade off between cost savings and product differentiation(i.e.cost-reduction effect and cannibalization effect).Compared with the quality, profit and consumer surplus in two different scenarios(with and without the commonality strategy),we find that (1)quality dispersion of the customized attribute is always larger with the commonality strategy;(2)the firm prefers the commonality strategy only when the cost reduction effect is strong. Keita Sogo, Keio University, Yokohama, Japan, k.sogu92@gmail.com, Nobuo Matsubayashi

360D Retail Management Contributed Session Chair: Miguel Ruiz, University of Puerto Rico at Mayaguez, Mayaguez, PR, United States, miguel.ruiz6@upr.edu 1 - Extreme Scale Resource Allocation Problem Involving Billion Variables Kalyanmoy Deb, Porfessor, Michigan State University, Electrical & Computer Engineering, 428 S Shaw Lane, East Lansing, MI, 48824, United States, kdeb@egr.msu.edu Many resource allocation problems in practice involve extremely large number of variables. Such problems give rise to an integer linear program, for which scalable algorithms are not possible due to the exponential nature of associated branch- and-bound approach. In this presentation, we consider a casting scheduling problem (similar to a cutting stock problem) and propose a metaheuristics based optimization method for finding near-optimal solutions involving as large as Billion variables. 2 - A Column Generation Based Distributed Scheduling Algorithm in Manufacturing Supply Chains This paper considers a resource constrained scheduling problem with a single shared resource. In this model, there are multiple processors who need to complete jobs with a certain amount of shared resource. The resource is of limited supply and must be shared between processors. We propose a column generation based distributed scheduling algorithm and compare the proposed method with other methods. Computational results prove our proposed method has an advantage both in objective value and CPU time to solve this problem. 3 - Simultaneous Matching Mechanisms for On-Demand Markets with Limited Resources Seyed Shahab Mofidi, Rensselaer Polytechnic Institute (RPI), 110 8th Street, CII 5107, Troy, NY, 12180, United States, mofids@rpi.edu, Jennifer A.Pazour In sharing economy applications, a central mechanism (CM) is vital to efficiently facilitate matches between decentralized utilitarian agents and finite available alternatives. The CM makes personalized recommendations, from which myopic independent agents select with full discretion, and CM collects benefit from the matches. However, the alternatives have limited capacity, which creates interdependencies among selections of agents. Thus, personalized recommendations need to be considered holistically and in conjunction with the system’s and agents’ preferences. A bilevel optimization framework and specialized solution approaches are developed to solve this large scale problem. 4 - Effect of Time Pressure and Individual Learning in the Worker Task Assignment Yaileen M. Mendez Vazquez, Oregon State University (School of Mechanical, Industrial and Manufacturing Engineering), Corvallis, OR, 97331, United States, mendezvy@oregonstate.edu, David A. Nembhard This work addresses the worker-task assignment problem when the effect of time pressure and workers learning capacity are considered on the individual worker performance. Previous works related to worker-task assignment does not consider the effect of time pressure and individual learning capacity simultaneously. However, literature states the impact of learning by repeatedly perform a task in the improvement of worker’s performance, and as well of time pressure in the individual diligence to perform a specific task. A mathematical model is proposed to incorporate these two factors in the estimation of individual worker performance and investigate its effect for the worker-task assignment. 5 - Optimal Cash Rationing Strategy under Different Product Priority Classes Youssef Boulaksil, Assistant Professor, United Arab Emirates University, P.O. Box 15551, Building H3, Office 2055, Al Ain, United Arab Emirates, youssef.boulaksil@gmail.com We consider small, traditional retailers (nanostores) that are widely present in developing countries. They operate under very limited cash availability. Therefore, nanostores categorize their assortment into different (product) priority classes, and consequently, more cash is allocated to replenish a higher priority product. In this paper, we develop a mathematical model and present the optimal cash rationing strategy for the nanostore who faces uncertain demand and uncertain cash position. We also show how this strategy affects the suppliers’ distribution process towards the nanostores. An extensive numerical experiment reveals several interesting insights. Changchun Liu, Dr., Tsinghua University, Hai Dian, Beijing, Beijing, 100084, China, liucc15@mails.tsinghua.edu.cn

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