Informs Annual Meeting 2017

WB35

INFORMS Houston – 2017

WB32

develop an integrated approach that recovers airline timetable, fleet assignment, aircraft routings, and passenger itineraries capturing the impacts of airlines’ decisions on passenger compensation. We evaluate scenarios involving disruptions, and optimize recovery decisions to maximize profits by modeling passenger no-shows after disruptions. 2 - Optimal Control of Flight Parameters for Re-scheduling Airline Operations Ángel Marín, Technical University of Madrid, Madrid, Spain, angel.marin@upm.es, Jesús Gabriel Galindo, Luis Cadarso Flight planning determines the route, speed, and fuel burn of a flight. In case of disruptions, it has been usually either poorly addressed or obviated. We present a novel approach addressing airline recovery, which integrates flight planning and passenger re-scheduling and develop an integrated non-linear model that recovers airline timetable and passenger itineraries capturing the impacts of airlines’ decisions on passenger compensation and loss of goodwill. We evaluate scenarios involving disruptions, and optimize recovery decisions to maximize profits. 3 - Sequential Approach for Solving the Dynamic Aircraft Recovery Problem Bruno F. Santos, Assistant Professor, Delft University of Technology, Delft, Netherlands, b.f.santos@tudelft.nl, Jeroen Vink, Wim J.C. Verhagen, Ivo Medeiros, Ricardo Filho This paper presents a new approach for solving the recovery of aircraft routing, using a heuristic that iteratively solves selections of the airline’s fleet. An initial solution is always presented in seconds, after which potential reductions of disruption cost are investigated. The model is solved dynamically, re-solving the airline’s schedule based on new disruption information starting from the last found solution. Aircraft specific requirements such as maintenance schedules are taken into consideration. The selection heuristic can find an optimal solution in 90% of the disruption instances tested, while on average only requiring 4% of the time needed to find the global optimum. 4 - Stochastic Dynamic Airline Disruption Management using Airport Stochastic Delay Data Lavanya Marla, University of Illinois at Urbana-Champaign, Urbana, IL, United States, lavanyam@illinois.edu, Jane Lee, Alexandre Jacquillat We present and evaluate an approach which integrates advanced disruption management (incorporating flight planning) with a stochastic and dynamic decision framework, to create a more robust handling of the disruptions caused by congestion at the airport. We develop an online algorithm that utilizes a rolling horizon approach for solving the recovery model with flight planning, where the future expected cost of stochastic disruptions are used as input for look-ahead period. We show empirically that having a look-ahead period with stochastic airport information reduces recovery costs compared to a naïve model. Chair: Lisha Duan, The Pennsylvania State University, University Park, PA, United States, lud149@psu.edu 1 - Supply Chain Network Equilibrium Model under Carbon Cap and Trade Yiping Jiang, Associate Professor, Nanjing Agricultural University, 40 Dian Jiang Tai Road, Pukou, Nanjing, 210031, China, ypjiang@njau.edu.cn, Xiaoling FU This paper investigates the network equilibrium problem in a supply chain network considering carbon allowance trading and demand uncertainty. We first link carbon cap-and-trade with transaction decisions in a supply chain network, and identify its unique characteristics. Then we formulate this problem as a network equilibrium optimization model, and further convert it into a monotone variational inequality. Next, we propose a projection-based prediction correction algorithm to solve the developed model. Finally, we report the numerical results and give some management insights. 2 - An Integrated Model for a Two-attribute Warranty Policy Involving the Manufacturer, Suppliers, and Distributors Amitava Mitra, Professor, Auburn University, College of Business, Lowder Building Suite 419, Auburn, AL, 36849-5266, United States, mitraam@auburn.edu A two-attribute warranty policy, consisting of warranty period and usage limit, is considered. A portion of the warranty costs, incurred by a manufacturer, is usually assigned to the suppliers associated with the particular part/component failure through a “burden ratio”. Additionally, the manufacturer may pay a commission to the distributor/retailer of products based on the achieved market share. An integrated model is developed from the manufacturer’s perspective involving the decision variables of unit product price, warranty period, usage limit, commission paid, and burden ratio. WB35 351E Supply Chain, Competition Contributed Session

351B Supply Chain, Risk Management Contributed Session Chair: John Kros, East Carolina University, Greenville, NC, United States, krosj@ecu.edu 1 - Mitigating Supply Chain Risk through Supply Chain Responsiveness a Prioritization Approach Seyed Vahid Reza Nooraie, NC A&T.State University, 2205 Newgarden Road, Greensboro, NC, 27410-1718, United States, snooraie@aggies.ncat.edu, Paul M.Stanfield, Mahour Parast, Masoud Narenji, Saeed Zamiri Marvizadeh The global market is characterized by decreasing product life cycles, rapid change in customer demands, and shortened lead time to respond to environmental uncertainty. In such situations, the capability of a firm to quickly respond to changes in its external environment is an initial determinant of the firm’s performance. This can only be possible when the supply chain is responsive. The purpose of this paper is to identify different factors for responsive supply chains. Based on a review of the literature, we propose a conceptual model for supply chain responsiveness that encompasses practices such as flexibility, agility, internal integration, and visibility. 2 - Optimization-based High Performance Packaging for Moldable Items Roshanak Akram, Graduate Research Assistant, University of Tennessee, Knoxville, 851 Neyland Drive, 525 John D. Tickle Building, Knoxville, TN, 37996, United States, roshanak@utk.edu, Rupy Sawhney A food supplying company, constantly strives to improve the delivery of items, which reach their intended recipient in form of meal bags. Defects in packaging the meal bags into the boxes or transporting them improperly along the supply chain cause quality defects. These defects are not acceptable within company’s high quality standards. A three-pronged approach is proposed:Improve packaging by developing a high-performance optimization algorithm for moldable food bagsImprove inspection by developing an automated machine-learning based inspection system, andImprove accountability and identify training opportunities in the supply chain by connecting an observed defect to its root cause. 3 - Does Traceability Help Product Quality? Chao Liang, Cheung Kong Graduate School of Business, Main Campus, Oriental Plaza 2/F,, Tower E2, 1 East Chang An Ave.,, Beijing, 100738, China, cliang@ckgsb.edu.cn, Xianjun Geng In a supply chain with one manufacturer and one supplier, we study how traceability impacts the manufacturer and the supplier’s incentive to improve product quality. Interestingly, we find that traceability may reduce the final product’s quality. 4 - The Impact of Counterfeiting on Cost and Service Delivery in the Supply Chain John F. Kros, Vincent K. McMahon Distinguished Professor, East Carolina University, College of Business Dept of M&SCM, 3205 Harold Bate Building, Greenville, NC, 27858-4353, United States, krosj@ecu.edu, Scott Dellana, W. Jason Rowe Counterfeiting of goods is an emerging stream of research. Firms are increasingly facing a multitude of challenges in preventing inferior products from reaching end-users. The emphasis has largely focused on counterfeiting risks in relation to the deleterious effects on brand image and customer perceptions of unethical behavior by final-tier channel members. Research is lacking which considers the implications of counterfeiting as a disruptive force in the supply chain. Our study aims to research the extent to which firms seek to detect the presence of counterfeiting and the subsequent effects the detection and occurrence of counterfeiting has on costs and service delivery in the supply chain. 351C Reducing Air Transport Disruptions through Improved Operations Sponsored: Aviation Applications Sponsored Session Chair: Bruno F Santos, TU Delft, Delft, 2629 HS, Netherlands, b.f.santos@tudelft.nl 1 - An Integrated Airline Recovery Approach Capturing Passenger Compensation Impacts Luis Cadarso, Rey Juan Carlos University, Camino del Molino s/n, Fuenlabrada, 28943, Spain, luis.cadarso@urjc.es, Vikrant Vaze The European flight delay compensation regulation (EC) No 261/2004 establishes common rules on compensation to passengers in the event of disruptions. We WB33

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