2015 Informs Annual Meeting

MA49

INFORMS Philadelphia – 2015

MA49 49-Room 105B, CC Energy Operations and Sustainability Sponsor: Manufacturing & Service Oper Mgmt/Supply Chain Sponsored Session Chair: Nur Sunar, Assistant Professor, University of North Carolina, Kenan-Flagler School of Business, Chapel Hill, NC, United States of America, Nur_Sunar@kenan-flagler.unc.edu 1 - New Business Models for Green Technology Adoption in Split Property Rights and Rents Situations Anton Ovchinnikov, Queen’s University, 143 Union St. West, Kingston, Canada, anton.ovchinnikov@queensu.ca In many situations, the owner of the asset that is being improved with green technology is not one that enjoys the benefits from the improvement. For example, the landlord may incur the costs of energy-efficiency upgrades, while the tenant will enjoy the savings in energy costs. Such split in property rights and rents is a major deterrent in the adoption of green technologies. I will discuss two case studies highlighting the industry practice and issues, and opportunities to resolve them. 2 - The Impact of Extended Producer Responsibility on Selling and Leasing Strategies Ni Fang, HEC Paris, 1, Rue de la Liberation, HEC Paris, Jouy en Josas, DI, 78351, France, ni.fang@hec.edu, Andrea Masini While product take-back legislation based on the Extended Producer Responsibility (EPR) concept is becoming an increasingly popular instrument to reduce waste, its actual operational and environmental impact remains unclear. This paper examines how EPR legislation affects the optimal channel allocation decisions of a firm that either sells, leases, or concurrently sells and leases durable products, and it discusses the competitive and environmental implications of regulation. 3 - The Buyer’s Role in Improving Energy Efficiency in Supply Chains MA50 50-Room 106A, CC The Role of Behavioral Modeling Features in Revenue Management Sponsor: Manufacturing & Service Operations Management Sponsored Session Chair: Eren Cil, University of Oregon, 1585 East 13th Avenue, Eugene, OR, United States of America, erencil@uoregon.edu 1 - What if Hotelling’s Firms Can Deliver Their Products? Competitive and Social Implications Alireza Yazdani, University of Oregon, 2250 Patterson St., Unit 220, Eugene, OR, 97405, United States of America, syazdani@uoregon.edu, Eren Cil, Michael Pangburn We study the competition between two firms serving dispersed customers, which we model using Hoteling’s classic linear city model. In the classic framework, travel costs are borne by consumers, but potentially firms could absorb those costs by making deliveries to customers. We explore the competitive and social implications of these two alternatives for serving customers demands, considering both product design and pricing decisions. 2 - Dynamic Pricing of Multiple Substitutable Products with Search Cost and Local Behavioral Influences Sajjad Najafi, PhD Candidate, University of Toronto, RS206, 5 King’s College Road, Toronto, ON, M5S 3G8, Canada, snajafi@mie.utoronto.ca, Chi Guhn Lee, Sami Najafi-Asadolahi, Steven Nahmias We consider a seller offering n types of substitutable products over T time periods. Customers incur a search cost for inspecting the products, and may examine only a subset of the products. They are also assumed to have a local behavior in the search process. Given inventory state and time, the firm aims to find the optimal price of the products maximizing its profit. Jason Nguyen, University of Minnesota, 321 19th Ave S, Minneapolis, MN, 55455, United States of America, nguy1762@umn.edu, Karen Donohue, Mili Mehrotra We investigate the equipment-focused EE investment decision in the context of a supply chain where a capital constrained manufacturer sets the investment level and its buyer sets contract prices. We investigate the impact of different factors including policy incentives and global competition on the investment decisions.

3 - Social Loafing and Queue Driven Speedup: Evidence from a Supermarket Yong-Pin Zhou, Associate Professor of Operations Management,

University of Washington, Seattle, WA, 98195-3226, United States of America, yongpin@uw.edu, Jingqi Wang

We study factors affecting cashiers’ service rate using data from a supermarket. We find that customer waiting pushes cashiers to work faster. We also observe that pooling has a negative impact on cashiers’ service rate. 4 - Physician Dual Practice; When Revenue is Not the Only Thing that Matters Vasiliki Kostami, London Business School, London Business School (MSO dept), Regent’s Park, London, NW1 4SA, United Kingdom, vkostami@london.edu, Dimitrios Andritsos Physician dual practice refers to the simultaneous practice of medicine by physicians in both public and private settings. In the presence of dual-practice, we are looking at the optimal proportion of time that physicians may be willing to invest in a private practice. How does that proportion depend on the physicians objective? And how does this affect the severity of the patients that are treated in the public versus the private clinics? Models for Fashion Operations Management Sponsor: Manufacturing & Service Operations Management Sponsored Session Chair: Victor Martínez-de-Albéniz, Associate Professor, IESE Business School, Av. Pearson 21, Barcelona, 08034, Spain, Valbeniz@iese.edu 1 - Assortment Planning Decisions in a Two-sided Market Ying Cao, University of Texas at Dallas, 800 W. Campbell Rd, Richardson, TX, 75080, United States of America, Ying.Cao@utdallas.edu, Dorothee Honhon, Sridhar Seshadri We consider the problem of a firm optimizing its assortment when facing a two- sided market. The firm receives revenues from customers purchasing the products as well as from advertising company who offer to pay various amounts for reaching customers from different segments. We explore structural properties of the optimal assortment and compare it to the solutions of the one-sided market problems. 2 - Managing Online Content to Build a Follower Base: Model and Applications Felipe Caro, University of California Los Angeles, 110 Westwood Plaza, Box 951481, Los Angeles, CA, 90095-1481, United States of America, felipe.caro@anderson.ucla.edu, Victor Martínez-de-Albéniz Content providers typically manage a dual objective of generating interest for current content and at the same time reaching out to new audiences that may become repeat users. The pace at which content is created must thus take into account how much current content contributes to the follower base. We develop a simple model to study base build-up dynamics, and use it to optimize the total traffic received by the content provider through stochastic dynamic programming. 3 - Choosing an Assortment Rotation Strategy to Boost Sales Kris Johnson Ferreira, Harvard Business School, Morgan Hall 492, Boston, MA, 02163, United States of America, kferreira@hbs.edu, David Simchi-levi Assortment rotation strategies vary widely across fashion retailers; the flash sales industry uses a frequent assortment rotation strategy, introducing new products every day. We build a finite-horizon stochastic dynamic programming model to better understand the consumer’s purchase decisions under this strategy. We analyze and compare our model to the setting where all products are offered for the entire selling season and explore under what conditions the retailer should employ each strategy. 4 - Estimating and Optimizing the Impact of Inventory on Consumer Choices in Fashion Retail Victor Martínez-de-Albéniz, Associate Professor, IESE Business School, Av. Pearson 21, Barcelona, 08034, Spain, Valbeniz@iese.edu, Pol Boada We empirically study the impact of inventory (as opposed to availability) on sales. We develop a market share model where we show that product-level inventory has a large impact on its market share within the category. This supports the idea that inventory plays a major role in helping customers choose a particular product within the assortment. We finally describe how a retailer should optimally decide its inventory levels within a category. MA51 51-Room 106B, CC

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