Informs Annual Meeting Phoenix 2018

INFORMS Phoenix – 2018

TB80

4 - A General Dual Sourcing Inventory Model: Trading off Lead Time and Cost Differences Zhe Liu, Columbia Business School, 3022 Broadway, New York, NY, 10027, United States, Awi Federgruen, Lijian Lu We study a single product, periodic review inventory system with two suppliers and salvage options. A regular supplier has a longer lead time but is cheaper than an expedited supplier. Salvage options allow for bilateral inventory adjustments. All inventory adjustments involve a fixed cost component in addition to variable costs or revenues and may be capacitated. We show that the optimal order sizes and/or salvage quantity follow a relatively simple structure. This applies when the lead times of the two suppliers differ by a single period. However, our structural results suggest effective heuristics for general lead times and demonstrate the significant benefits of dual sourcing. 5 - Inventory Inaccuracies and Radio Frequency Identification Technology: Risk Analysis and Coordination Tingting Wang, Huazhong University of Science & Technology, No. 1037, Luoyu Road, Hongshan District, Wuhan, 430074, China We study the adoption of RFID to reduce the inventory shrinkage and misplacement in the supply chain, which consists of a risk-neutral manufacturer and a risk-averse retailer. The Conditional Value at Risk criterion is adapted to measure the retailer’s risk attitude. We focus on exploring how the risk attitude affects the agents’ incentives and show that the incentives to adopt RFID depend on the risk attitude. Further, when the tag cost is sufficiently low, the agents’ incentives increase with the risk-averse level increasing. Additionally, the supply chain can afford higher tag cost (fixed cost) if the retailer is more risk-neutral. Finally, we also identify the coordination mechanism under RFID. n TB80 Hyatt, Curtis B Practice- Supply Chain Management V Contributed Session Chair: Devaraja Vignesh Radha Krishnan, Oklahoma State University, Stillwater, OK, 74075, United States 1 - Reduce Carbon Emissions Across Supply Chain: The Role of Information Sharing Sijie Zhou, Doctoral Student, University of Science and Technology of China, No.96 JinZhai Road, Baohe District, Hefei, 230026, China, Yugang Yu This study is motivated by a few international retailers (like, Walmart and H&M) cooperating with their suppliers to reduce carbon emissions across the supply chains.Our paper investigates the operations associated with information sharing and studies its influence on environment under the real condition. We show that with Bayesian updating of demand, information sharing will benefit supplier but possibly hurt retailer. We reveal the conditions favoring information sharing: information sharing doesn’t always benefit the environment, which contradicts to the popular thoughts about the advantage of collaborative contracts between retailers and suppliers. 2 - Does Vertical Integration Allow for More Sustainable Supply Chain? Comparative Analysis within the Apparel Manufacturing Industry Suri Gurumurthi, Hong Kong University of Science and Technology, Clearwater Bay Road, Kowloon, Hong Kong, HK, Ronald Lau Through this research, we aim to investigate whether the vertically integrated supply chain can perform better along limited sustainability metrics, as compared to the network or decentralized model of sustainability. We also explore the linkage between vertical integration and targeted technology investment towards sustainability performance. We also comment on how incentives are relatively harder to align in decentralized structures, and the specific role of incentives in sustainability performance. 3 - Impact of Social and Environmental Performance Assessment of Suppliers on Buyer Supplier Relationship and Purchasing Performance Sivamanikarthikeyan Rajendran, Research Scholar, Indian Institute of Technology Madras, Sardar Patel Road, Opposite to C.L.R.I, Adyar, Chennai, 600036, India, Arshinder Kaur In this study, we contribute to the existing line of literature by identifying the key social and environmental factors in the Indian context based on an exhaustive review of literature and analyzing the impact of social and environmental performance assessment of suppliers on the purchasing performance of the buying firm. We also study this impact when the focal firm is utilizing supply chain analytics (which acts as a moderating variable). Finally, we develop a conceptual framework based on the underlying relationships between the above mentioned variables which will aid the managers in understanding how social and environmental performance evaluation influences the purchasing performance.

4 - Freight Consolidation Problem with Pickup and Delivery Sequence and Loading Constraints Devaraja Vignesh Radha Krishnan, Oklahoma State University, Stillwater, OK, 74075, United States, Tieming Liu In Pickup and Delivery problem (PDP), if multiple shipments are consolidated and placed in a vehicle, then the loading order of shipments is a major cost factor along with the trip distance. We address the PDP with the Last-In-First-Out (LIFO) order for pickup and delivery of shipments. In addition, we relax the LIFO constraints and present an exact formulation and algorithms for PDP with LIFO violation penalties. n TB81 Hyatt, Phoenix East Optimization II Contributed Session Chair: Roya Ghorashi, University of Wisconsin-Milwaukee, P.O. Box 413, Milwaukee, WI, 53211, United States 1 - Integrating Nesting and Cutting Path Determination Problems Larissa Oliveira, University of Sao Paulo, 400 Trabalhador S π o- carlense Avenue, Sao Carlos, 13566-590, Brazil, Franklina Toledo, Jos Fernando Oliveira The nesting problem consists of finding a layout for small irregular shaped pieces that must be cut from a larger object with fixed height and infinite length, minimizing the length required to cut all the pieces. In some industries, after a solution of this problem has been defined, a second problem arises: the determination of the cutting path, i.e. to determine the shortest path length required to cut all the pieces. The solution of the first problem strongly influences the resolution of the second. To tackle this joint problem, we propose an integrated approach. 2 - Synchronizing Last Trains of Urban Rail Transit System to Better Serve Passengers from Late Trains of High-Speed Railway Lines This paper develops a bi-objective mixed-integer linear model for the problem of last- train timetable synchronization of urban rail transit (URT) system to better serve passengers from late trains of high-speed railway lines in late night. The bi- objective optimization problem is to maximize the number of passengers who can arrive their destinations successfully and to minimize the total operation-ending time for last trains of URT system. This model can deliver both a last-train transfer scheme solution and a last-train timetable of URT system at the same time. The e - constraint method is used to find the Pareto optimal solutions for the proposed bi-objective model. 3 - Developing a Continuous Location Routing Model Ali Sarabi, Arizona State University, Tempe, AZ, United States, Adolfo Raphael Escobedo Generally, the costs of logistics and distribution make up a significant share of a product’s price. As a result, integration of location and routing decisions has great potential to reduce total costs. How these decisions can be made simultaneously has been widely studied for locations in a discretized space but few works have considered a continuous space. In this study, we develop an MIP model and solution methodology for the capacitated location routing problem (CLRP) for this context. Specifically, the space is segmented and location priorities are considered by allocating construction costs by zones, and then impossible location cases are removed from the potential decisions. 4 - Math Models and Heuristic Methods for Constructing Fair Political Districts Roya Ghorashi, PhD Candidate, University of Wisconsin- Milwaukee, 2615 N. Cramer Street, # 39, Milwaukee, WI, 53211, United States, Matthew E. Petering Political district maps are crucial to a fair distribution of political power. This study attempts to find a solution to form fair political districts considering various criteria. We propose several exact and heuristic methods for creating fair political districts. Preliminary results indicate that these methods produce political district maps of high quality. Sihui Long, Beijing Jiaotong University, Beijing, China, Lingyun Meng, Xi Jiang, Yuyan Tan, Francesco Corman

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