Informs Annual Meeting Phoenix 2018

INFORMS Phoenix – 2018

TC18

(conceptual goals, execution guidelines), and the corresponding designer decisions. We solve the model for seekers’ optimal decisions: While more execution guidelines always benefit the seeker, more conceptual goals do not. Finally, we discuss a quasi-natural experiment, providing further empirical evidence for our predictions and recommendations. 2 - Sourcing Complex Innovation: Integrated System or Individual Components? Zhi Chen, INSEAD, 1 Ayer Rajah Avenue, Singapore, Jurgen Mihm, Jochen Schlapp Many purchasing projects involve buying complex systems, which require the suppliers to perform some custom product or technology development regardless of whether they win the project or not. Viewing such a procurement setting through the lense of contest, we study under which circumstances a buying firm should source an integrated system or individual components. 3 - Strategic Benefit of Request for Quotation We study how a buyer may reduce cost by combining a procurement process with (the threat of) exclusion clauses, the latter of which has been commonly adopted in contracting but rarely executed. We analyze the equilibrium outcomes when the buyer simultaneously or sequentially negotiates with imperfectly substitutable suppliers under a dual-sourcing setting. Surprisingly, the buyer can benefit from a request for quotation (RFQ) stage that precedes the negotiation stage even under a full information setting. Specifically, by endogenizing the sequence of negotiations via the quotations submitted, the buyer’s equilibrium profit with an RFQ is (weakly) higher than the profit without an RFQ. 4 - Supplier Competition and Investment: An Experimental Investigation Cuihong Li, University of Connecticut, School of Business, 2100 Hillside Road, Storrs, CT, 06269, United States, Elena Katok, Zhixi Wan We consider a buyer facing two suppliers who invest in cost reduction before bidding for contracts. Using laboratory experiments, we investigate how supplier competition and investment observability affect suppliers’ cost-reduction and buyer’s reserve price decisions. Ying Rong, Shanghai Jiao Tong University, No. 1 Lane 9, Yunwushan Road, Shanghai, 200051, China, Leon Zhu, Huan Zheng n TC18 North Bldg 128A Operations/ Marketing Interface I Contributed Session Chair: Franco Berbeglia, Tepper School of Business, 5000 Forbes Avenue, Pittsburgh, PA, 15213, United States 1 - Channel-level Benefit-cost Analysis in Investment Decision Yasamin Salmani, PhD Student, Drexel University, Philadelphia, PA, United States, Fariborz Partovi, Avijit Banerjee Companies provide multiple sales channels for their customers, to compete in the marketplace. The model proposed in this study, helps the managers to have a channel-level profit analysis to improve these established sales channels. 2 - Online Retailer Competition with Referral Services Kihoon Kim, Korea University, Korea Univeristy Business School, LG-POSCO #316, Anam-dong, Seongbuk-gu, Seoul, 136701, Korea, Republic of We investigate when two competing online retailers can be better off by adopting a referral service. We show that the proportion of the strongly loyal consumers of the referral-offering retailer in the group of its all consumers mainly determines the chance that the referral service will be adopted. As a main result, when the market shares of both the retailers are not significantly different, the referral service is likely to be adopted unless the degree of the loyalty among their loyal consumers is weak and there exist some comparison consumers. 3 - The Strategic Impacts of Advertising on Crowdfunding Zhixin Chen, Doctor, University of Technology and Science of China, Jinzhai RD 96#, hefei, 230026, China, Jie Wu Previous literature on crowdfunding paid rare attention to how advertising affects crowdfunding. To fill in this gap, we apply a stylized game-theoretical model to analyze interactions between firm’s advertising decisions and crowdfunding decisions. As a result of our research, we obtained several managerial insights for the balance of the potential tension. The advertising is meaningless and the creator would choose to do no advertising when the fundraising target is relatively high, and the advertising can reduce the high price in menu pricing strategy, however, the menu pricing strategy can only work when the target is not too high.

n TC16 North Bldg 127B

Sustainable and Socially Responsible Operations Sponsored: Manufacturing & Service Oper Mgmt/Sustainable Operations Sponsored Session Chair: Can Zhang, Georgia Institue of Technology, Atlanta, GA, 30309, United States 1 - Designing Platforms for the First Mile Joann de Zegher, MIT Sloan, Cambridge, MA, 02142, United States, Sergio Camelo, Dan Andrei Iancu, Daniela Saban Smallholder farmers in developing and emerging economies supply over 50% of global calories. This first mile of global supply chains typically operates inefficiently, is non-traceable, and is difficult to study because smallholder farmers sell through informal networks. We first share how we quantify inefficiencies in such informal first-mile supply chains of Indonesia by integrating large-scale field work and optimization. We then provide an overview of how platforms can alleviate such inefficiencies, and create traceability as a by-product. Finally, we propose a framed field experiment to estimate how much value a proposed platform can create in such resource-constrained environments. 2 - Dynamic Volunteer Staffing in Multicrop Gleaning Operations Erkut Sonmez, University of Nebraska Lincoln, 730 N. 14th Street, College of Business, University of Nebraska, Lincoln, NE, 68588, United States, Baris Ata, Deishin Lee Gleaning programs organize volunteer gleaners to harvest leftover crops that are donated by farmers for the purpose of feeding food-insecure individuals and reducing food waste. We develop a dynamic volunteer staffing policy that maximizes the long run average volume of food gleaned. 3 - Tracing Quality to its Source: Quality and Compliance Issues in Distributed Supply Chains Philippe Blaettchen, INSEAD, Fontainebleau, France, Andre Du Pin Calmon, Sameer Hasija Modern technologies like blockchain enable unprecedented levels of visibility into multi-tiered supply chains. We investigate the effect of traceability on supply chain quality, compliance, and efficiency for different supply chain structures. We also analyse the optimal deployment strategy of a traceability system, and we model the decision of adopting a traceability technology as a game between the members of a supply chain. While we are motivated by food supply chains, which have traditionally been fraught with waste as well as difficulties in effectively certifying origins and processes, our results are applicable in a general context. 4 - Consistent Allocation of Emission Responsibility in Energy Supply Chains Sanjith Gopalakrishnan, University of British Columbia, 2053 Main Mall, Vancouver, BC, V6T1Z2, Canada, Daniel Granot, Frieda Granot Canada’s federal government, since 2016, factors in upstream emissions during the environmental impact assessment of energy projects. Motivated by the regulation, we adopt a cooperative game model and propose the nucleolus as a mechanism to apportion upstream emissions. It avoids the distortionary effects of double counting and exhibits a consistency property that is significant in a context wherein energy supply chains span multiple legal jurisdictions. We develop a polynomial-time algorithm and further, derive it as the unique subgame perfect equilibrium to a non-cooperative game induced by two easily stated and verifiable policies, thereby lending a self-implementing policy framework. n TC17 North Bldg 127C Sourcing and Innovation Sponsored: Manufacturing & Service Oper Mgmt/Supply Chain Sponsored Session Chair: Cuihong Li, University of Connecticut, Storrs, CT, 06269, United States Co-Chair: Leon Zhu, University of Southern California, Los Angeles, CA, 90089, United States 1 - The Role of Problem Specifications in Crowdsourced Innovation Contests: Theoretical Analysis and Data Evidence Zoey Jiang, Stephen M. Ross School of Business, University of Michigan, Ann Arbor, MI, 48104, United States, Yan Huang, Damian Beil We investigate the role of seekers’ problem specifications in crowdsourcing contests to solve design problems. We propose and empirically test a theoretical model featuring different types of information in problem specifications

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