Informs Annual Meeting 2017

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INFORMS Houston – 2017

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3 - The Airline Schedule Recovery Problem Navid Rashedi, Dartmouth College, Dartmouth, NH, United States, Navid.Rashedi.TH@Dartmouth.edu The Airline Schedule Recovery problem attempts to repair a schedule of flights to handle disruption events. However, obtaining an online and near-optimal solution for this problem is often challenging. In this research, a Machine Learning based method is developed to achieve a near-optimal solution within a short runtime. Using binary classification techniques, a set of aircraft routings that are more likely to be in the solution will be generated. Then, based on a randomized greedy procedure, the best possible set of feasible aircraft routings is constructed. 351D Operations Research and Security Sponsored: Military Applications Sponsored Session Chair: Andrew Oscar Hall, PhD, United States Military Academy, 86 B Patridge Pl, West Point, NY, 10996, United States, andrew.hall@usma.edu 1 - Simulation Based Multi-mission Cutter Scheduling for the Coast Guard Sercan Demir, PhD Candidate, University of Miami, 1251 Memorial Drive #268, Department of Industrial Engineering, Coral Gables, FL, 33146, United States, s.demir@umiami.edu, Gregory E.Higgins, Nurcin Celik The United States Coast Guard (USCG) plans the world-wide operations of its ships, referred to as cutters. Scheduling is executed manually and focused on large-scale strategic priorities. Yet, this is problematic as stochastic events are increasingly costly and priorities have and will continue to shift. In 2013, USCG cutters lost four times the amount of operational days lost due to unplanned events. We propose a comprehensive multi-mission schedule evaluation mechanism which utilizes historical data to forecast productivity output at the tactical level, given limited resources across a spectrum of current and future scenarios. 2 - Coordinated Defender Strategies for Border Patrols Víctor Bucarey, PhD Student, Universidad de Chile, Beauchef 851 of 506, Santiago, Chile, vbucarey@ing.uchile.cl Security is a worldwide concern that in many situations requires the coordinated use of diverse types of resources. In particular the task of patrolling a border requires the coordinated use of may resources to monitor of vast stretches of land 24/7. We formulate a Security Stackelberg game as an integer programming problem that globally combines police precincts and location to be proctected in a border patrol context. We present tight formulations based on the matching polytope and present two sampling methods to provide implementable patrolling strategies. 3 - Valuation of Jumboization for Military Transportation Ships a Real Options Approach Fikri Kucuksayacigil, Iowa State University, 610 Squaw Creek Drive, Unit 18, Ames, IA, 50010, United States, fksayaci@iastate.edu, K.Jo Min When transportation requirements increase in the navy, some of the practical solutions involve jumboization. Jumboization is defined as increasing the capacity of an existing ship by extending its length at a future date. The choice of the ship design has future ramifications: With fixed design (the ship is not designed initially envisioning future jumboization investment), jumboization later will be costly. With flexible design, jumboization later will be less costly, however the initial cost may be more because of initially strengthened hull of the ship. We analyze both cases, and determine conditions under which one design is superior to another by using stochastic optimal control approach. SC34

351E Supply Chain Management Contributed Session Chair: Wenting Pan, Saint Mary’s College of California, Moraga, CA, United States, wp3@stmarys-ca.edu 1 - Decision-maker’s Preferences Modeling within Ambidextrous Supply Chain Belaid Aouni, Associate Dean, Qatar University, College of Business and Economics, Al Jamiaa Street, Doha, 2713, Qatar, belaid.aouni@qu.edu.qa The aim of this paper is to utilize the concept of satisfaction function and Goal Programming model to explicitly incorporate the Decision-Maker’s preferences for selecting the best supply chain that aggregates simultaneously exploitation and exploration capabilities. 2 - Information Leakage and Sharing in a Two-period Decentralized Supply Chain Weixin Shang, Associate Professor, Lingnan University, Hong Kong, Hong Kong, shangwx@ln.edu.hk We consider a supply chain with one manufacturer selling to one retailer who processes private demand information over two selling periods. We examine the retailer’s information sharing decisions with and without side payment, and firms’ subsequent pricing decisions. Without information sharing, in period 2 the manufacturer will infer the retailer’s private information via period-1 order quantity. We find that the retailer does not share the information voluntarily due to harmful double marginalization. However, the retailer shares the information to the manufacturer with side payments when demand uncertainty is high. 3 - Investment Decisions for Improving Quality Along Supply Chains Yi Man, Shanghai Jiaotong University, Antai College of Economics and Management, 1954 Huashan Rd, Shanghai, 200030, China, iamdiyer@sjtu.edu.cn In this paper, we consider a supply chain with one supplier and one retailer who jointly make their efforts to improve product quality along supply chains. Investment decisions of the retailer and the supplier as well as order quantity of the retailer are made consequently in order to maximize each party’s own profit. From analytical results, we find that the retailer only places the order if the joint investment exceeds certain threshold. The region in which the supplier and retailer make joint efforts in the investment is provided when the demand is exponentially distributed. Numerical studies are given to reveal the effect of the parameters. 4 - The Influence of Supply Network on the Innovation Capability of Firms Shubhobrata Palit, Student, Georgia Institute of Technology, Atlanta, GA, 30308, United States, shubhobrata.palit@scheller.gatech.edu We explore the role of a firm’s supply network in driving innovation in firms. Using secondary data, we examine how the diversity and the intensity of the knowledge and expertise of suppliers enable firms to drive their own innovation. We also examine the moderating effects of the structural position of the firm in its supply network and the ability of the firm to assimilate external knowledge, in driving its innovation. We find significant associations of innovation characteristics of supply network with the innovation output of the firm. The results have valuable managerial implications to help firms better manage their supply network. 5 - Location and Capacity Optimization for Electron Beam Facilities for Phytosanitary Treatment of Mexican Import Commodities Yiwei Huang, Pennsylvania State University - Shenango, Sharon, PA, United States, yuh201@psu.edu We develop a generalizable decision support system for determining the optimum number of eBeam facilities to treat fruits and vegetables imported from Mexico to the U.S., their capacities, and their locations. This system also selects the optimal assignment for each truckload of fresh fruit from Mexican growing regions to the eBeam facilities, and then to the U.S. hubs for distribution. In addition to the standard components of a cost function (transportation, operations, capacity, and building), our nonlinear mathematical model takes into account the time spent waiting at the border crossing and the time lost because of congestion at the eBeam facilities by using queuing approximations. 6 - Impact Supplier’s Lead Time has on Assembler’s Strategic Decisions

Wenting Pan, Associate Professor, Saint Mary’s College of California, 1928 Saint Mary’s Road, Moraga, CA, 94556, United States, wp3@stmarys-ca.edu, Yuhong He

This paper examines the impact the supplier’s lead time has on the assembler’s strategic choice of partnership. Specifically, we study when the assembler would buy components from the suppliers and when the assembler would have a vendor-managed consignment contract with the suppliers. Furthermore, we also explore the conditions under which a supplier would be selected by the assembler as a sub-assembler to manage other suppliers.

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