Informs Annual Meeting 2017

SA12

INFORMS Houston – 2017

2 - Allocating Inpatient Beds to Off-service Patients: Tradeoffs and Consequences

4 - Managing High Worker Turnover: Productivity & Peer Effects on Modern Production Lines Ken Moon, The Wharton School, Philadelphia, PA, 19104, United States, kenmoon@wharton.upenn.edu We study the drivers and consequences of high worker turnover in modern, large-scale production processes. Leveraging a uniquely rich dataset drawn from China-based final assembly, testing, and packaging (FATP) facilities producing millions of units of consumer electronic goods per week, we study the role of peer effects in worker turnover and quantify the effects of such turnover on production outcomes. We prescribe policies to both manage turnover and mitigate its effects: in practice, managers lack guidance on the optimal mix of control versus mitigation and often suspect that they may undervalue worker experience. 332C Health Care, Strategy and Policy Contributed Session Chair: Ashlea Milburn, University of Arkansas, Fayetteville, AR, United States, ashlea.bennett@uark.edu 1 - The Impact of Bundled Payment Policy On Health Care Operations Yiming Fan, University of Science and Technology of China, Hefei, 230026, China, jinkui0612@163.com Healthcare reimbursements in China have been traditionally based on a fee-for- service (FFS) scheme, leading to the rapid increase in healthcare costs, since FFS provides incentives for high volume of care, rather than efficient care. During the healthcare reform, a new reimbursement scheme, called bundled payment (BP), is introduced in order to remove such incentives. In this paper, we aim to empirically study the impact of BP on the operational performances of a healthcare system using a data set from Anhui New Rural Cooperative Medical System. 2 - Comparative Two Types of the Value Co-creation Model of Long-term Care for the Elder in Taiwan Ching-Fang Wu, PhD Student, Nation Cheng Kung University, No.1, University Road, Tainan City, Taiwan (R.O.C), 701, Taiwan, r48021037@mail.ncku.edu.tw, Shih-Chieh Fang, Ching-Ying Huang The purpose of this research is to examine the elderly customers’ satisfaction and well-being from customer Effort in Value Co-creation Activities point of view. Besides, we compare two different models of long-term care and try to find which factors affect customer satisfaction and quality of life. This study is a quantitative study conducted by questionnaires. There are two types of Subjects for the questionnaires, one is the elder who lives in the day-care center, the other one is in the hospital-based institution. Three parts of the questionnaires which are demographic and living characteristics, value co-creation activities, satisfaction, and life satisfaction scale. 3 - Multiple Chronic Condition Patterns in Baby Boomers, Generation X, and Early Millennials Ajit Appari, University of Texas Health Science Center at Houston, 1200 Pressler Street, RAS.W-310, School of Public Health, Houston, TX, 77030, United States, ajit.appari@uth.tmc.edu, Maria Ukhanova, Robert O. Morgan Multiple chronic conditions (MCC) in working-age adults pose enormous burden to the American economy. Critical gaps exist in our understanding of MCC patterns and their geographic variation among working-age adults. In this study we analyzed claims data on 451,694 individuals, continuously enrolled with a leading insurer in Texas during 2008-2013. Using Exploratory Factor Analysis, we determined five major patterns- Metabolic, Cardiovascular, Musculoskeletal, Liver-Immune Disorder, and Neurologic-Pain. Next, logistic regression was used to identify community socioeconomic factors (zip code) that correlate with MCC risk, adjusting for selection bias using Heckman’s approach. 4 - A Study of the 2008 Subprime Mortgage Crisis’ Impact on Taiwanese Pregnant Women and Their Children Development by an Epigenetic Approach Jonathan Tong, PhD Program Student, National Taiwan University, 7F., No. 28, Ln.325, Zhungjing Rd., Taipei, 110, Taiwan, d03323003@ntu.edu.tw Previous studies show that embryo will change functionally relevant to cellular and physiological phenotypic traits without involving a change in the nucleotide sequence, nor in DNA sequence, when pregnant women endure external/environmental impacts. This study will investigate Taiwanese children born in the period of economic crisis 2008 based an epigenetic approach and see if such changes also include some critical social cognitive capabilities. SA13

Hummy Song, The Wharton School, University of Pennsylvania, 560 Jon M. Huntsman Hall, 3730 Walnut Street, Philadelphia, PA, 19104, United States, hummy@wharton.upenn.edu, Anita L. Tucker, Ryan Graue, Sarah Moravick, Julius J. Yang Given a highly variable patient census at the service level yet a fixed allocation of inpatient beds to services, a significant portion of admitted patients become “off- service” patients. These patients are physically located in a bed that belongs to a different service (e.g., general surgery) while still being cared for by a physician of the service (e.g., cardiac medicine). We examine the tradeoffs and consequences of assigning incoming patients to an off-service bed as opposed to an on-service bed. 3 - The Influence of Customer Emotions in Chat Service Operations Galit Yom-Tov, Technion - Israel Institute of Technology, Techbion City, Haifa, 32000, Israel, gality@technion.ac.il, Anat Rafaeli, Daniel Altman, Monika Westphal, Michael Natapov, Neta Barkay We develop a sentiment analysis tool for objective assessment of customer emotions in interactions between service agents and customers. We then explore customer sentiment of real customer-agent interactions in three companies. Our analyses shed light on the presence of positive and negative emotion in customer service, and identify patterns of customer emotion over the course of an interaction. The analyses quantify the link between customer emotions, service quality measures, and agent behaviour. We discuss implications of using automated sentiment analysis tools for the management of service centers. 4 - Strategic Capacity Management in Outpatient Care with No-shows and Rescheduling Yunchao Xu, New York University, 44 W 4th Street, KMC#8-152, New York, NY, 10012, United States, yxu4@stern.nyu.edu, Mor Armony, Nan Liu An important factor that determines whether a patient will show up or not for his scheduled appointment is how easy to reschedule if he chooses not to show up. In this talk, we discuss how an outpatient care provider should manage her practice by considering such patient strategic behavior. While this work is motivated by healthcare, our models and insights can also be applied to appointment-based services in other settings. 332B Empirical Studies of Supply Chains and Production Sponsored: Manufacturing & Service Oper Mgmt Sponsored Session Chair: Ken Moon, The Wharton School, Philadelphia, PA, 19104, United States, kenmoon@wharton.upenn.edu 1 - Impact of Order-fulfillment Service Levels on Customer Value Nitish Jain, London Business School, Sussex Place, Regent’s Park, London, NW1 4SA, United Kingdom, njain@london.edu, Karan Girotra, Andres I. Musalem Faster fulfillment of an order is one of the key service components for online retailers. Based on a detailed transactional data on fulfillment performance (actual and promised) and on subsequent purchase patterns, we impute the economic Ioannis Stamatopoulos, University of Texas at Austin, McCombs School of Business, 2110 Speedway B6000, Austin, TX, 78705, United States, yannis.stamos@mccombs.utexas.edu, Soheil Ghili We leverage detailed data from an international retailer who adopted the electronic shelf label technology to some - but not all - of its stores to identify the underlying operational costs of pricing. We impose a simple model for pricing on that data and use the adoption shock to separate the effects of menu costs on prices from those of changes in demand trends. Our approach can be thought of as a structural implementation of the difference-in-difference identification strategy. 3 - Does Ration Gaming Drive the Bullwhip Effect? Robert Louis Bray, 830 Hinman Ave, 2s, Evanston, IL, 60202, United States, robertlbray@gmail.com We model a single-supplier, 73-store supply chain as a dynamic discrete choice problem. We estimate the model with transaction-level data, spanning 3,251 products and 1,370 days. We find two phenomena: ration gaming (strategic inventory hoarding) and the bullwhip effect (the amplification of demand variability along the supply chain). We estimate that the bullwhip effect would be 12% smaller in the counterfactual scenario without ration gaming incentives, confirming the long-standing hypothesis that ration gaming causes the bullwhip effect. value of faster and timely fulfillment to online retailers. 2 - Estimating the Operational Costs of Pricing SA12

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