2015 Informs Annual Meeting

SD50

INFORMS Philadelphia – 2015

2 - Role of Alternative Payment Models in Incentivizing Information Sharing in Healthcare Mehmet Ayvaci, Asst. Professor, University of Texas-Dallas, School of Management, Richardson, TX, 75080, United States of America, mehmet.ayvaci@utdallas.edu, Srinivasan Raghunathan, Huseyin Cavusoglu We explore the incentive alignment problem for electronic sharing of health information (HIE) under episode and performance-based payments. In particular, we study what quality improvement provisions should be embedded into the payments and which of the specific performance incentives associated with alternative payment models; rewards, penalty, or a combination of the two better aligns the incentives for HIE adoption. 3 - Design of Multi-stage Services with Diagnostic Tasks Mohammad Delasay, Post-doctoral Fellow, Tepper School of Business, Carnegie Mellon University, 5000 Forbes Avenue, Pittsburgh, United States of America, delasays@andrew.cmu.edu, Itai Gurvich, Mustafa Akan Many services require diagnostic tasks, e.g., diagnostic testing in an emergency room. The time spent on these tasks and the sequence in which they are performed is usually discretionary. We explore how discretionary diagnostic tasks should be distributed among different stages of a multi-stage operations system to deliver high quality service with minimum wait cost. We are interested in situations where the extent of information gained from diagnostic tasks varies across different stages. 4 - Coordinating Product Support Supply Chains under Outcome-based Compensations Dong Li, Singapore University of Technology and Design, 8 Somapah Road, Singapore, Singapore, dong_li@sutd.edu.sg, Nishant Mishra We look at contracting between an OEM and a supplier, where the supplier manufactures the part, and the OEM assembles the final product and manages product availability for the customer under an outcome-based contract. We find that wholesale price contracts and repair cost sharing contracts cause under- investment in failure reduction effort and over-investment in service capacity. Penalty sharing contracts can achieve the first best solution and coordinate the supply chain. SD50 50-Room 106A, CC Retail Operations Sponsor: Manufacturing & Service Operations Management Sponsored Session Chair: Vidya Mani, Assistant Professor, Pennsylvania State University, 461 Business Building, University Park, 16801, United States of America, vmani@psu.edu 1 - The Effect of Cyber Attack on Customers’ Purchase and Channel Choice Behavior Ramkumar Janakiraman, Darla Moore School Of Business, University of South Carolina, 1014 Greene Street, Columbia, SC, 29208, United States of America, ram@moore.sc.edu, Joon Ho Lim, Kumar Subodha, Rishika Rishika, Ram Bezawada This paper examines the effect of data breach announcement on customer shopping behavior in terms of spending level, frequency of shopping trips and channel migration. By using actual customer transaction data from a multichannel retailer and exploiting a natural experiment, we find that the cyberattack announcement leads to a 22.5% decrease in sales and a 14.1% decrease in shopping trips made by customers. Also, we find that customers tend to migrate to channels that were not breached. 2 - Learning about Customer Preferences from Clickstream Data Dorothee Honhon, Associate Professor, University of Texas at

3 - Optimal Replenishment in the Presence of Phantom Inventories using Point-of-sales Data Ioannis Stamatopoulos, Doctoral Candidate, Northwestern University, Kellogg School of Management, 2001 Sheridan,

Evanston, IL, 60208, United States of America, i-stamatopoulos@kellogg.northwestern.edu, Antonio Moreno-Garcia, Achal Bassamboo

We study how inventory managers can fully utilize point-of-sales (POS) data for the design of replenishment strategies that account for the existence of phantom inventories. We show that even though the optimal replenishment timing in the presence of phantom inventories is complex in nature, there is a simple policy that performs very close to optimally, and provides the same recommendation as the optimal policy for a vast majority of scenarios. 4 - Impact of Tabletop Technology on Restaurant Performance Fangyun (Tom) Tan, Assistant Professor, Cox Business School, SMU, 6212 Bishop Blvd, Dallas, TX, 75275, United States of America, ttan@cox.smu.edu, Serguei Netessine We analyze a large data set of transactions in a casual restaurant chain to understand the effect of implementing a tabletop technology on service performance (measured in sales and meal duration). We find the technology directly increases sales and significant reduces the meal duration. We provide insights on how to manage technology in restaurant operations. MSOM Student Paper Competition Finalists II Sponsor: Manufacturing & Service Operations Management Sponsored Session Chair: Goker Aydin, Indiana University, 1309 East Tenth Street, Bloomington, IN, 47405, United States of America, ayding@indiana.edu Co-Chair: Karan Girotra, Associate Professor, INSEAD, Boulevard de Constance, Fontainebleau, 77300, France, Karan.GIROTRA@insead.edu Co-Chair: Sameer Hasija, Assistant Professor, INSEAD, 1 Ayer Rajah Avenue, Grange Heights, Singapore, Singapore, Sameer.Hasija@insead.edu 1 - MSOM Student Paper Competition Finalists Sessions INFORMS 2015 The MSOM Student Paper Competition is awarded annually by the Manufacturing & Service Operations Management Society at the INFORMS Annual Meeting for papers judged to be the best in the field of operations management. SD52 52-Room 107A, CC Designing Services: Marketing and Operations Chair: Rohit Verma, Professor, Cornell University, School of Hotel Administration, 338 Statler Hall, Ithaca, NY, 14853-6902, United States of America, rohit.verma@cornell.edu 1 - A Data-driven Approach to Designing Service Concepts for Vehicle Operations Management Min-Jun Kim, PhD Student, POSTECH, Engineering Building #4- 316, Pohang, 790-784, Korea, Republic of, minjun@postech.ac.kr, Kwang-jae Kim, Chie-Hyeon Lim This talk proposes a data-driven approach to designing service concepts for vehicle operations management (VOM). The proposed approach first collects VOM-related data through various sensors installed on vehicles, analyzes the data to extract insights regarding vehicle operations, and then designs service concepts to support the operation of vehicles. This talk also presents case studies on passenger and commercial vehicles. SD51 51-Room 106B, CC Inter-related Issues I Sponsor: Service Science Sponsored Session

Dallas, 800 W. Campbell Road, Richardson, TX, 75080, United States of America, Dorothee.Honhon@utdallas.edu

We study the problem of an e-tailer who learns about consumer preferences from observing sales or clickstream data in a Bayesian fashion. The e-tailer decides which products to display on the search page and which products are available for purchase. We show that in some cases, it may be optimal to display products which are not purchasable so as to learn about consumer preferences.

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