Informs Annual Meeting 2017

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INFORMS Houston – 2017

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technology or adopt the 3D printing technology in the online channel or in both channels. We study 3D printing’s impacts on the firm’s product offering and

332D Data-driven Research of Hospital Workflow and Performance Sponsored: Manufacturing & Service Oper Mgmt, Healthcare Operations Sponsored Session Chair: Jonas Oddur Jonasson, MIT Sloan School of Management, MIT Sloan School of Management, Cambridge, MA, 02142, United States, joj@mit.edu 1 - Staff Planning for Anesthesiologists Sandeep Rath, University of North Carolina at Chapel Hill, CB #3490, McColl Building, McColl 4705, Chapel Hill, NC, 27599, United States, sandeep@unc.edu, Kumar Rajaram Staff planning for human resources like anesthesiologists at hospitals takes place sequentially, where planning is done for regular staffing as well as reserve capacity. The staff planners balance the expected overtime, under-utilization costs as well as the cost of keeping staff on reserve. Some of these costs are not explicitly known. We employ a structural estimation model to infer these implicit costs and subsequently find heuristic solution for the medium term staff planning. We apply this approach to staff planning for anesthesiologists. 2 - Proactive Customer Service Kraig Delana, London Business School, PhD Program Office, London, NW1 4SA, United Kingdom, kdelana@london.edu, Nicos Savva, Tolga Tezcan We study a service setting where the provider may learn about customers’ future service needs and initiate service for these customers proactively if they are flexible with respect to the timing of service delivery. Utilizing both exact and asymptotic analysis, we find that proactive service can generate significant reduction of delays for customers. Despite this, we find that customers are less willing to be flexible compared to social optimum because of a positive externality - flexible customers benefit not only themselves but inflexible customers as well. Hence to achieve the benefits of proactive service, providers may have to incentivize customers to overcome this economic friction. 3 - Hospital Finances and Operations Christopher J. Chen, London Business School, Regent’s Park, London, NW14SA, United Kingdom, cchen@london.edu, Nicos Savva We analyze how changes in hospital spending affects readmissions and mortality, and lay the foundation for studying the impact of funding cuts on operational decisions such as staffing levels and mix. Combining non-profit tax filings with data from the Centers for Medicare & Medicaid Services (CMS) on hospital characteristics and patient outcomes, and using instrumental variable estimation to address endogeneity in hospital spending, we find that increases in spending per patient in select cost centers have a positive impact on aggregate outcomes. Our findings indicate a potential mechanism through which spending cuts impact patients and sets up further tests on the resource pecking order. 4 - Data Analytics on the Operations of a Radiology Workflow Platform Gonzalo Romero, University of Toronto, Toronto, ON, Canada, gonzalo.romero@rotman.utoronto.ca, Timothy Chan, Nicholas Howard, Saman Lagzi Most hospitals in the U.S. follow an unstructured process for assigning images to radiologists, where each doctor has ample freedom to select the next image to work on out of a common pool. This can result in long processing times and sub- optimal use of the specialists’ time. A centralized workflow platform can address this problem by routing the right image to the right doctor at the right time. Motivated by our ongoing collaboration, we analyze a large and unique dataset from the operations of a radiology workflow platform, providing interesting and novel clinical findings. 332E Optimization Modeling in Supply Chains Sponsored: Manufacturing & Service Oper Mgmt, Supply Chain Sponsored Session Chair: Joel Goh, Harvard Business School, Boston, MA, 02163, United States, jgoh@hbs.edu 1 - Retailing with 3D Printing Yao Cui, Cornell University, Ithaca, NY, United States, yao.cui@cornell.edu, Li Chen, Hau Leung Lee We consider a firm that produces and sells products in two channels, an online store and a traditional store. The firm may use the traditional production WA15

pricing decisions, as well as the firm’s supply chain operations. 2 - Inventory Optimization for Fulfillment Integration in Omnichannel Retailing

Aravind Govindarajan, Ross School of Business, University of Michigan, 645 Hidden Valley Club Drive, Apt. 303, Ann Arbor, MI, 48104, United States, arav@umich.edu, Amitabh Sinha, Joline Uichanco Omnichannel refers to the seamless integration of a retailer’s channels such as brick-and-mortar and e-commerce. Using analytical models, we study three basic omnichannel fulfillment systems varying in the level of integration between in- store and online demands, and obtain optimal order quantities for the single period, two-store case. We extend our analyses to a network of stores and fulfillment centers, developing an asymptotically near-optimal heuristic which provides significant cost savings over naive strategies. Finally, we discuss extensions to the multi-period case under lost sales. 3 - Optimal Control and Value of Reverse Logistics in Supply Chains with Multiple Flows of Product Ozalp Ozer, The University of Texas at Dallas, 800 West Campbell Road, Sm30, Richardson, TX, 75080-3021, United States, oozer@utdallas.edu, Alexandar Angelus We formulate and solve a finite-horizon, multiechelon inventory model to jointly optimize regular ordering, expedited ordering and reverse-ordering decisions. We identify the structure of the optimal policy that achieves the decomposition of the objective cost function into a sequence of single-dimensional subproblems. We generalize our results to settings when excess inventory can be sold off to secondary markets at each stage. Our results allow us to quantify the value of reverse logistics under a variety of supply chain structures, and establish that reverse logistics and expediting can be either complements or substitutes depending on other elements of the supply chain. 4 - Intermediation in the Supply of Agricultural Products in Developing Economies Ehsan Valavi, Harvard Business School, 114 Western Avenue 2203C, Boston, MA, 02134, United States, evalavi@hbs.edu, Kris Johnson Ferreira, Joel Goh The agricultural industry has been growing in developing economies, yet farmers continue to struggle. One reason for this is that farmers bear the risk of mismatched supply and demand, since farmers must make planting and harvesting decisions prior to knowing the price they can get for their crop at an auction. Recently, e-intermediaries have emerged as an alternative channel to the auction for which farmers can sell their crop; e-intermediaries use technology to inform farmers about a fixed crop price prior to harvest. We study the impact that e-intermediaries have on the supply chain. 332F Operations Management Contributed Session Chair: Yuqiao Cheng, University of Houston, Houston, TX, United States, chengyuqiao126@gmail.com 1 - The Operational Implications of Introducing New Products into Consumer Packaged Goods Supply Chains: the Case of a Spanish Manufacturer Leonardo Laranjeira Gomes, PhD Candidate, MIT-Zaragoza International Logistics Program, Calle Bari 55, Edificio Nayade 5, Zaragoza, 50197, Spain, leogomes@mit.edu, Rafael Diaz We analyze and measure the operational impact of introducing new products into the supply chain of a consumer packaged goods manufacturer. By conducting an in-depth statistical analysis of a Spanish poultry products company, we identified factors that impact its operational performance and should be considered when analyzing exploration versus exploitation trade-offs. 2 - Selecting Procurement Auction Mechanisms Andreas Gernert, EBS.University, Burgstr. 5, Oestrich-Winkel, Germany, andreas.gernert@ebs.edu, David Wuttke, H. Sebastian Heese We compare two procurement auction mechanisms for innovative products. We examine when buyers should first invite multiple suppliers to engage simultaneously in R&D before selecting the winner as opposed to selecting first one supplier who then engages with higher effort in R&D. WA16

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