Informs Annual Meeting Phoenix 2018

INFORMS Phoenix – 2018

TE80

2 - Outsourcing under Competition: When to Choose a Competitor as a Supplier? Olga Perdikaki, University of South Carolina, Darla Moore School of Business, 1014 Greene Street, Columbia, SC, 29208, United States, H. Sebastian Heese, Eda Kemahlioglu Ziya Motivated by several examples of sourcing from direct competitors in different industries, we study a stylized supply chain model with a single OEM that could outsource either to an independent supplier or to an integrated firm that carries out manufacturing in-house and competes with the OEM. We identify how the presence of scale economies and competition affects the OEM’s supplier choice. 3 - A Stochastic Framework for Designing Complementary Agricultural Supply Chains Rodrigo Ulloa, Arizona State University, 513W 17th St, Tempe, AZ, 85281, United States, Hector Flores, J. Rene Villalobos We present an integrated planning framework that allows the insertion of independent farmers into commercial agricultural supply chains. In particular, we discuss the design and planning aspects of agri-food supply chains that can attain profitability through the utilization of stochastic optimization. The output from this framework is a planting and harvesting schedule for identified regions along their assigned consumer market. The framework also helps identify geographical regions with hidden agricultural potential given by their geographical location and weather patterns, where a two-stage stochastic program is developed to address the stochasticity of the weather. n TE80 Hyatt, Curtis B Practice- Supply Chain Management II Contributed Session Chair: Mengke Tian, The Hong Kong University of Science, Room 3208, Dep. of IEDA, Acade, Hong Kong 1 - Impact of Supplier’s Lead Time on Assembler’s Strategic Decisions Yuhong He, Assistant Professor, California State University- Fullerton, 2550 Nutwood Avenue, SGMH 4149, Fullerton, CA, 92831, United States, Wenting Pan 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. 2 - Partial Vertical Integration in Supply Chains Yibin Zhang, Associate Professor, Lixin University of Accounting & Finance, 2800 Wenxiang Road, Songjiang University Town, Shanghai, 201620, China, Xiaoguang Wang, Victor Shi It is widely assumed in the operations management literature that vertical integration can eliminate double marginalization and boost supply chain efficiency. However, a number of research studies find that full disintegration can be beneficial in certain strategic context. In this paper, motivated by the common business phenomenon that firms hold each other’s ownership shares, we study partial vertical integration in supply chains. Our findings show that partial vertical integration can be the equilibrium channel structure in supply chains. Hence, our research provides another important justification for the business practice of partial ownership among firms. 3 - A Supply Chain Framework to Improve Survival and Productivity of Small Firms in Developing Countries: A Case Study in Latin America Cansu Tayaksi, Postdoctoral Associate, Massachusetts Institute of Technology, 77 Massachusetts Ave, Cambridge, MA, 02139, United States, Josue Velazquez Martinez, Ramon Paulino, Rafaela Pereira Nunes Small firms represent more than 95% of the companies in developing countries. Due to a lack of productivity, only a fraction survives. In this paper, we study the impact of SC practices in small firms and show that by improving SC expertise, small firms also improve their survival rate. We present a conceptual framework based on a system dynamics model that provides guidance on how small firms can focus on SC and business priorities. We validate our framework via a field study conducted in 50 companies in three countries in Latin America.

n TE78 West Bldg 213B Alternative-Fuel Vehicles Refueling and Routing Problems III Sponsored: Location Analysis Sponsored Session Chair: Ismail Capar, Texas A&M University, College Station, TX, 77843-3367, United States Co-Chair: Yudai Honma, The University of Tokyo, Tokyo, 153-8505, Japan 1 - Electric Vehicle Routing Problem with Time Windows and Ambient Temperature Effect Bulent Catay, Prof., Sabanci University, Orhanli, Tuzla, Istanbul, 34956, Turkey, Rastani Sina, Yuksel Tugce We extend the Electric Vehicle Routing Problem with Time Windows by taking into account the ambient temperature. We formulate this problem as a mixed integer linear program and propose a set of network reduction rules. We perform an extensive experimental study to investigate how ambient temperature influences the routing decisions and to analyze the contribution of the proposed rules to run time. We present managerial insights to both researchers and practitioners by solving small instances using a commercial solver. The results show the effectiveness of the reduction rules and reveal that neglecting temperature effect may yield route plans that cannot be implemented in the business environment. 2 - A Continuous Location Problem – Locating Refueling Points on Lines and Comb Trees Yazhu Song, Arizona State University, 699 S. Mill Avenue, BYENG 219, Tempe, AZ, 85281, United States, Pitu B. Mirchandani There is much reason to believe that many individuals and organizations will transform their vehicles to ones that utilize more sustainable alternative fuels. Among all, the EV is a promising candidate for this transformation. Unfortunately, little effort has gone into designing the layout of the battery charging/swapping infrastructure. This presentation discusses a new set of continuous location problems related to locating refueling points (RPs) on real lines, trees and general networks. Minimization of the number of RPs used to refuel all O-D flows is considered as the first objective. Then the objective is to locate a fixed number of RPs to minimize the total weighted travel distance. 3 - Capacity and Location Design of Charging Facilities for Private Electronic Vehicles Ting Wu, Associate Professor, Nanjing University, Department of Mathematics, No 22 Hankou Road, Nanjing, 210093, China, Cheng Zhu Electronic Vehicles (EV) tend to have significant impacts on the economy, environment and the society. This study tends to address the design of charging facilities for EVs via robust optimization and analytics. Specifically, we aim to answer the following research questions: 1) what charging approach(es) is optimal for a specific region? 2) Does charging at close stations or locations outside transportation network improve the efficiency of the network?3) How should we determine the location(s) and capacity of the optimal charging approach(es)? n TE79 Hyatt, Curtis A Supply Chain Management V Contributed Session Chair: Rodrigo Ulloa, Arizona State University, Tempe, AZ, 85281, United States 1 - Is Supplier-base Concentration Risky? Empirical Evidence from Small and Medium Sized Enterprises (SMES) of Manufacturing Sector in China This study investigates whether and how supplier-base concentration affects the relationship of operational efficiency to performance and risk. We try to integrate inventory turnover with supplier-base concentration, firm performance and credit risk. The study shows that inventory turnover contributes positively to firm performance but supplier-base concentration has a negative impact on firm performance. Interestingly, supplier-base concentration negatively moderates the relationship between inventory turnover and firm performance. We also find that inventory turnover negatively affects credit risk and supplier-base concentration positively affects credit risk. Feng Liu, Korea University Business School, Anam-ro 145, Seongbuk-gu,, Seoul, Korea, Republic of, Kwangtae Park

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