Informs Annual Meeting 2017

WA20

INFORMS Houston – 2017

WA20

4 - Optimal Middle Mile Transportation with Load Cancelation and Pick-up and Delivery Time Windows Larissa P.G. Petroianu, PhD Student, University of Washington, University of Washington - 3900 E.Stevens Way NE, Mechanical Engineering Building, Room G6, Seattle, WA, 98195, United States, lpetroia@uw.edu, Mauricio G.C. Resende, Zelda B. Zabinsky We develop a mixed-integer programming model of a planning and scheduling problem in middle mile transportation. Middle mile transportation consists of moving goods between facilities while satisfying several constraints, including time windows for pickup and delivery. One challenge is that the demand is stochastic, i.e., demand can be cancelled and ad-hoc demand created. We describe a heuristic for this problem and present computational results.

342B Information Systems Contributed Session

Chair: Sumate Permwonguswa, University of Colorado-Denver, Denver, CO, United States, sumate.permwonguswa@ucdenver.edu 1 - A Social Network Perspective on user Adaptation Toward its System in Organizations Yi Wu, Tianjin University, Tianjin, China, yiwu@tju.edu.cn Social networks are vital mechanisms for users to adapt to changes induced by a new IT system in organizations. However, the effect of social networks on post- adoption IT use is not well understood. Drawing on coping theory and the social network literature, a cognitive-affective-behavioral classification of user adaptation is developed, and seeking-network closure and giving-network closure are identified as key network characteristics pertinent to post-adoption IT use. Thereafter, this paper establishes a theoretical link from network characteristics to post-adoption IT use through the underlying mechanisms of user adaptation. 2 - Doctor’s Looking Glass Self: Empowerment and Satisfaction through Telemedicine Telemedicine provides higher accessibility for patients to healthcare. Yet, not many doctors adopt telemedicine in their practices. Analogous to patient empowerment, doctor empowerment may be a driver towards telemedicine adoption. We explore the role of empowerment on practice satisfaction of a doctor through the use of telemedicine. Relationships between the three types of empowerment on practice satisfaction have been studied empirically. We also argue that the relationships will be stronger when spatial and power distance orientations in the practice setting are less. Sumate Permwonguswa, University of Colorado Denver, 3 30 E.10th Ave, Apt 506, Denver, CO, 80203, United States, sumate.permwonguswa@ucdenver.edu, Jiban Khuntia 342C Sustainability Contributed Session Chair: Larissa P.G. Petroianu, University of Washington, Seattle, WA, United States, lpetroia@uw.edu 1 - Shipping Peak Demand for Online Sellers: Reserve and Surcharge Online retailing is changing the landscape of retail industry in countries as Amazon’s market cap has recently doubled that of Wal-Mart in the US. Different from brick and mortar, online sellers rely on 3rd party logistics for the delivery of the goods but the hugely spiked demand during holiday seasons (Christmas in the US, Singles’ day in China) poses a substantial challenge for the 3PLs to deliver on time. To better manage demand, 3PLs such as UPS, require the sellers to make reservation and to pay a surcharge for extra work. In this paper, we discuss how these shipping arrangements may affect the online sellers’ inventory decisions, how to coordinate the channel for the sellers and shippers to win-win. 2 - The K-shortest Origins Problem Stefan Poikonen, PhD Candidate, University of Maryland-College Park, 3406 Tulane Dr., Apt 22, Hyattsville, MD, 20783, United States, spoikone@math.umd.edu, Larry Levy, Bruce L. Golden The k-shortest origins problem will be introduced. As brick-and-mortar retailers increase their online presence, a frequent option presented to online shoppers is to have their orders available for pick-up at a nearby store, because the “last mile” of delivery represents a large portion of the supply chain cost. A customer may be presented with a list of the k nearest pickup locations. Amazon has built over 1700 Amazon Locker locations expressly for this purpose. We present a method to compute the k nearest pickup locations for all customers rapidly. A single call of a modified version of Dijkstra’s Algorithm and a phantom “supernode” are used. 3 - Heuristics for Chute and Dock Assignment Problem in a Shipping Area of Cross-docking Center In this study, genetic algorithm based heuristic with local search is proposed to solve chute and dock assignment problem in a shipping are of cross-dock center. This problem is formulated as mixed integer programming problem to minimize material handling cost from chute to dock and the congestion of the dock in the shipping area. Numerical experiment was conducted to show the effectiveness of the proposed method. Ju Myung Song, Rutgers Business School, PhD Program, 1 Washington Park, Room 430C, Newark, NJ, 07102, United States, jumyungsong@gmail.com Takashi Irohara, Professor, Sophia University, 7-1 Kioi-cho, Chiyoda-ku, Tokyo, 102-8554, Japan, irohara@sophia.ac.jp WA21

WA22

342D OM and Marketing Interface Sponsored: Revenue Management & Pricing Sponsored Session

Chair: Xiajun Amy Pan, University of Florida, Gainesville, FL, 32611-7169, United States, amy.pan@warrington.ufl.edu Co-Chair: Quan Ben Zheng, University of Florida, Gainesville, FL, United States, quan.zheng@warrington.ufl.edu 1 - Opaque Selling and Last-minute Selling: Revenue Management in Vertically Differentiated Markets Hang Ren, University College London, Flat 28, Nansen Village, 21 Woodside Avenue, London, N12 8AQ, United Kingdom, hang.ren.13@ucl.ac.uk, Tingliang Huang We analyze the performance of opaque selling as a clearance strategy in vertically differentiated markets. Compared to last-minute selling, opaque selling may increase revenue because consumers who wait for the sales cannot choose the preferred product type. Its disadvantage, however, lies in the inflexibility in segmenting different types of consumers. Both the advantage and the disadvantage are radically different from their counterparts in horizontally differentiated markets. This contrast generates opposite policy recommendations across the two settings. 2 - Add-on Pricing under Valuation Uncertainty Quan Zheng, University of Florida, 302 Diamond Village, Apt 16, Gainesville, FL, 32603, United States, quan.zheng@warrington.ufl.edu, Xiajun Amy Pan We incorporate a hitherto neglected feature in add-on pricing: the purchase time of base product (e.g., hotel room) is separated with the consumption time of add- on (e.g., Internet service). Consumers can either buy the add-on at a discount with valuation uncertainty or wait until the uncertainty is resolved but at a higher price. We first characterize the optimal selling strategies under various scenarios for a monopoly seller, and then consider duopoly competition with symmetric firms. Interestingly, the results show that there exist asymmetric equilibria in which symmetric firms employ different pricing schemes to alleviate price competition. 3 - Price Restraining Policies and Improving Profits by Increasing Search Frictions Ozge Sahin, Johns Hopkins University, 524 Manhattan Avenue, Apt 6B, Brooklyn, NY, 11222, United States, ozge.sahin@jhu.edu, Liang Ding, Roman Kapuscinski While online retail broadens manufacturer’s access to consumers through an additional channel, prices are often lower in online stores than in physical stores. Customers experience products in physical store but purchase online for lower prices. As a result, physical store sales decrease and they stop promoting such products. However, for manufacturers, physical stores play a crucial role by showcasing products to customers. We find that deliberately adding search frictions, and using price restraining policies can improve manufacturer’s, physical and online retailers’ profits by allowing consumers to self-select into low price but high search cost or high price but low search cost retailers. 4 - Crowdfunding under Social Learning and Network Externalities Fasheng Xu, Washington University in St. Louis, Saint Louis, MO, 63130, United States, fasheng.xu@wustl.edu, Fuqiang Zhang This paper investigates how the presence of both social learning and network externalities affect the strategic interaction between a crowdfunding campaigner and a forward-looking consumer population. Our analysis yields three main insights. First, we find in the presence of social learning and strategic consumers with strong network externalities can lead to an upward-sloping demand curve. Second, we establish that the presence of network externalities has significant structural implications for optimal crowdfunding reward choice. Third, we characterize the optimal rewarding strategy when facing financial constraints and quantify the impact of the fundraising target.

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