2015 Informs Annual Meeting

MD75

INFORMS Philadelphia – 2015

4 - Joint Burn-in and Imperfect Condition-based Maintenance for N-subpopulations Yisha Xiang, Assistant Professor, Lamar University, 2626 Cherry Engineering Building, Beaumont,, TX, 77710, United States of America, yxiang@lamar.edu, David Coit For some engineering design and manufacturing applications, particularly for evolving and new technologies, some populations of manufactured parts or devices are heterogeneous and consist of a small number of different subpopulations. In this study, we propose a joint burn-in and imperfect condition- based maintenance model with consideration of random effects within subpopulations. Numerical examples are provided to illustrate the proposed procedure. MD75 75-Room 204B, CC Deep Dive on Open Innovation – Papers and Discussants Cluster: New Product Development Invited Session Chair: Jeremy Hutchison-Krupat, Professor, University of Virginia, Charlottesville, VA 22901, United States of America, KrupatJ@darden.virginia.edu 1 - Optimal Shapes of Innovation Pipelines New product introductions often occur via R&D pipelines. We explore the optimal number of innovation options to pursue in this complex managerial process. A stylized game simulation of the pharma industry provides additional evidence for our problem. 2 - Discussant Sanjiv Erat, UCSD, Gilman Drive, La Jolla, CA, United States of America, serat@ucsd.edu This talk will offer a discussion/critique of the paper titled “Optimal Shapes Of Innovation Pipelines. 3 - How Much Better is Open Innovation? Sebastian Fixson, Babson College, Tomasso Hall 226, Babson Park, MA, 02457, United States of America, sfixson@babson.edu, Tucker Marion Over the past 15 years research has emerged that describes many advantages of open innovation, such as unearthing ideas that better match customer needs and/or problem specifications. In this paper, we study in detail the new product development process of a single organization that makes extensive use of external actors throughout its process, and explore the corresponding performance implications. 4 - Discussant Yi Xu, Associate Professor, Smith School of Business, University of Maryland, College Park, MD, 20742, United States of America, yxu@rhsmith.umd.edu This talk will offer a discussion/critique of the paper titled “How Much Better Is Open Innovation? Joel Wooten, University of South Carolina, Columbia, SC, United States of America, joel.wooten@moore.sc.edu, Sriram Venkataraman

2 - The Use of Lindley’s Entropy in Dynamic Sampling Decisions Rasim Muzaffer Musal, Associate Professor, Texas State University, 601 University Dr., McCoy Hall 411, San Marcos, TX, 78666, United States of America, rm84@txstate.edu, Tahir Ekin Neyman Allocation (NA) is used to stratify Medicare payments to create relatively homogeneous strata. These strata are assumed to provide a relatively more homogeneous over-payment sub-populations. We suggest an extension to NA by the use of Lindley’s expected information gain measure to make efficient sampling decisions. In doing so a novel application is presented under simulated scenarios. A comparison between alternative methods is illustrated. 3 - Using Markov Chain Monte Carlo for Input Models of Surgery Duration in a Multi-specialty Department Louis Luangkesorn, Research Assistant Professor, University of Pittsburgh, 1048 Benedum Hall, Department of Industrial Engineering, Pittsburgh, PA, 15261, United States of America, lol11@pitt.edu, Zeynep Filiz Eren Dogu The variety of procedures in a surgery suite means that even with several years of data many surgical cases will have little or no historical data for use in predicting case duration. Parameterizing duration is needed for other procedures such as stochastic optimization. We combine expert judgement, expert classification of procedures by complexity category and historical data in a Markov Chain Monte Carlo (MCMC) model to parameterize cases and test the result against other methods. 4 - Medicare Fraud Analytics using Cluster Analysis Babak Zafari, The George Washington University School of Business, 2201 G Street NW, Funger Hall, Suite 415, Washington, DC, United States of America, zafari@gwu.edu, Paulo Macedo, Sewit Araia In this work, we use of cluster analysis to group healthcare providers based on similar billing patterns. In detecting outliers, comparing providers based on self- reported specialty can cause false positives due to specialization. We use BETOS codes to categorize procedure codes in addressing the issue of aberrant billing behavior. This establishes a representative peer comparison group that minimizes false positives. The efficacy of the proposed method is illustrated through data simulation. MD77 77-Room 300, CC Supply Chain Management VIII Contributed Session Chair: Marcus Bellamy, Assistant Professor, Boston University Questrom School of Business, 595 Commonwealth Avenue, Boston, Jing Hu, PhD Student, Fudan University, 670 Guoshun Road, Yangpu District, Shanghai, China, jinghu13@fudan.edu.cn, Qiying Hu Inspired by the Chinese mobile phone industry, we find four R&D modes between vertical firms: two collaborative modes (R&D cartel and R&D joint venture) and two non-collaborative modes (manufacturer-R&D and retailer-R&D). A three- stage game model is considered to explain why these modes coexist. We find that firms prefer the R&D cartel if and only if they have comparable channel powers. When collaboration is impossible, only the firm with sufficiently smaller cost factor prefers R&D by itself. 2 - The Role of Customer Flexibility in Achieving Supply Chain Agility Vahid Ghomi, PhD Student, University of Mississippi, Marketing Department, School of Business Administration, Oxford, MS, 38655, United States of America, vghomi@bus.olemiss.edu, Bahram Alidaee A firm’s supply chain agility (SCA) is a critical factor affecting its overall competitiveness. To create SCA, most research concentrate on exploring manufacturing flexibility, supply side flexibility, and logistics capabilities. However, there are variety of settings where demand side flexibility (DSF) can be achieved. The purpose of this research is to present, (1) a comprehensive literature review of DSF, (2) research directions as how SCA can be achieved by exploring DSF. MA, 02215, United States of America, bellamym@bu.edu 1 - R and D Modes of Manufacturers’ Cost Reduction: How to Invest in Supply Chains

MD76 76-Room 204C, CC Simulation in Healthcare

Sponsor: Simulation Sponsored Session

Chair: Tahir Ekin, Assistant Professor, Texas State University, 01 University Dr. McCoy Hall 411, San Marcos, TX, 78666, United States of America, t_e18@txstate.edu 1 - Simulation of Hospital Outpatient Clinics Lawrence Fulton, Assistant Professor, Texas Tech University, 703 Flint Ave, Lubbock, TX, United States of America, larry.fulton@ttu.edu, Nathaniel Bastian MedModel was used to provide decision support for a hospital’s outpatient clinic organization. Variables of interest included cost, capitation rate, utilization, and throughput. Outpatient areas evaluated included primary care clinics, OB/GYN, pediatrics, internal medicine, same-day surgery, orthopedics, psychology / psychiatry, social work service, and physical therapy / occupational therapy. The modeling demonstrates the usefulness of healthcare simulation for organizational change.

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