Informs Annual Meeting Phoenix 2018

INFORMS Phoenix – 2018

WA12

2 - Procurement Design under Asymmetric Information of Uncertain Supply Feng Liu, Dr., Dongbei Univeristy of Finance and Economics, Dalian, China, Qingkai Ji, Jun Zhuang Unreliable suppliers may pose a substantial threat to supply chains, especially when they hold private reliability information. We consider a dyadic supply chain where the production yield information of supplier is asymmetric. We propose a new mechanism-design model and derive the buyer’s optimal procurement contract menu that can screen the suppliers with private information. We prove that the contract menu is as simple as offering two different inflated order amounts and setting the procuring price sufficiently low to let the suppliers earn reservation profits. This paper provides some new insights into supply chain Suvankar Ghosh, University of Toledo, 2801 W. Bancroft Street, Toledo, OH, 43606, United States, John Thornton, Yewmun Yip Exceling in managing the supply chain is a challenge. Firms with superior supply chain management (SCM) capability play a key role as other businesses try to emulate them. But businesses have to first know who these capable firms are. Information signaling models assert that having a credential can signal the requisite capability. Gartner publishes annually a list of the top 25 firms that it believes excel in SCM. We treat being in Gartner’s list as a credential of superior SCM capability. We study the value of this credential from 2004 to 2014 and find worrying signs that its value may be eroding with time. This has serious Ravi Suman, University of Wisconsin-Madison, Madison, WI, 53726, United States, Aqueel Nazim Altaf, Ananth Krishnamurthy, Sushanta Sahu Strategic decisions of which products to make at which facility are often influenced by a combination of quantitative factors (capacity and costs) and qualitative factors (political stability and supply reliability). We develop a decision-making framework that effectively balances these diverse factors and evaluates alternatives. The approach uses a mixed integer programming model to capture the effects of quantitative factors and a generalized TOPSIS model to address the qualitative factors. We show that the combination of the two methods provides a true assessment of alternative scenarios facilitating effective decision making. 5 - Supply Chain Finance Program Offered by Major Retailers: A Strategic Framework of Supplier Assessment Process Konstantinos Moros, Senior Manager - EY Advisory Services, EY (Ernst & Young) - Advisory Services, 3 Ipsilandou Street, Alimos, Athens, 17455, Greece, Daniel Corsten The focus of this empirical research is positioned within the intersectional research area of Buyer-Supplier Relationships and Supply Chain Finance. By conducting a survey in a group of suppliers who have been exposed to, informed, and invited to adopt a SCF program, offered by one of the largest multinational retailers, we examine the main non-finance and finance related drivers of supplier-perceived satisfaction and trust and propose a strategic framework of ex- ante and ex-post assessment process followed by suppliers. We also explore the link of these two BSR constructs to the supplier perceived SCF program attractiveness and the risk of buyer opportunism, following a potential adoption. 6 - Supply Chain & Innovation in Consumer Goods Manufacturing. The Operational Impact of New Product Introductions Rafael D az, Professor of Supply Chain Management, MIT-Zaragoza Logistics Center, Zaragoza, 50197, Spain, Leo Laranjeira Gomes We analyze and measure the impact of new product introductions into the supply chain of a consumer goods manufacturer. Based on an in-depth analysis of operational panel data from a European company, we identified the factors that impact its supply chain performance and should be considered when analyzing exploration versus exploitation trade-offs. management under asymmetric information of uncertain supply. 3 - Information Signaling of Superior Supply Chain Management Capability implications for both Gartner and the business community. 4 - Multi-criteria Evaluation of Supply Chain Structures

n WA12 North Bldg 126A

Joint Session MSOM/Practice Curated: Empirical and Theoretical Studies of the Sharing Economy Sponsored: Manufacturing & Service Oper Mgmt Sponsored Session

Chair: Maxime Cohen, NYU Stern, New York, NY, 10012, United States Co-Chair: Gad Allon, University of Pennsylvania, Philadelphia, PA, 19104, United States 1 - The Impact of Behavioral and Economic Drivers on Gig Economy Workers Park Sinchaisri, The Wharton School, University of Pennsylvania, Philadelphia, PA, United States, Gad Allon, Maxime Cohen While gig economy firms benefit from increased labor flexibility, ensuring that their services appeal to independent providers poses a great challenge in planning and committing to a service capacity. We study how on-demand workers make labor decisions: when to work and for how long? Our project is in collaboration with a ride-hailing company with the goal to not only improve the way of predicting the number of active drivers, but also understand how to better recruit them, as a way to match supply and demand. Careful analysis of actual work decisions and responses to incentives, accounted for sample selection and endogeneity, has revealed behavioral insights that can inform better incentive design. 2 - Under the Same Roof: Value of Shared Living in Airbnb Yao Cui, Cornell University, Ithaca, NY, 14853, United States, Ming Hu An important difference between Airbnb and traditional hotels is that the guest may be sharing the property with the host. Due to the shared living it enables, Airbnb blurs the line between economic and social exchanges. In this paper, we study how the social exchanges affect transaction prices in Airbnb. We first offer empirical evidence that the guest’s desire to stay with the host impacts transaction prices. The empirical evidence thus suggests that the guest may obtain a utility from staying with the host, which we term the social utility. We then theoretically investigate the implications of social utility for the sharing economy stakeholders. 3 - Free-floating Vehicle Sharing Networks Einar Gunnarsson, University of Minnesota, Minneapolis, MN, United States, Saif Benjaafar We describe a queueing model of free-floating vehicle sharing networks, such as dockless bikes. We characterize the relationship between service level, fleet size, and the size of the service region. We show that maintaining a high service level can require a disproportionately large fleet. 4 - Dockless Bike-share Systems Ashish Kabra, INSEAD, Boulevard de Constance, Fontainebleau, 77305, France Dockless bike-share systems have taken over the VC landscape. We study how their ridership compares and more importantly interacts with station based bike- share systems.

n WA13 North Bldg 126B Practice- Supply Chain Management I Contributed Session

Chair: Konstantinos (Constantine) Moros, EY (Ernst & Young) - Advisory Services, 3 Ipsilandou Street, Alimos, Athens, 17455, Greece 1 - Implementing Blockchain Solution using Smart Contracts for Efficient Container Cargo Tracking Raja Jayaraman, Khalifa University, P. O. Box 127788, Abu Dhabi, United Arab Emirates, Khaled Salah Efficient tracking of container cargo is critical in managing global trade and logistics activities. The volume of global container movement combined with information opaqueness and complexity necessitates implementing a robust technology solution with real time tracking capabilities. Blockchain is an emerging technology that offers the necessary framework to track and manage container cargo movements across the supply chain using a peer-to-peer, secured, distributed ledger. In this talk, we present the implementation approach, architectural design, interactions between sender and receiver, and testing of the overall system functionality.

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