2015 Informs Annual Meeting

TC40

INFORMS Philadelphia – 2015

TC39 39-Room 100, CC Distribution Channel Management Cluster: Operations/Marketing Interface Invited Session Chair: Xiaowei Xu, Associate Professor, Rutgers Business School-New Brunswick, 100 Rockafeller Rd., Piscataway, NJ, 08854, United States of America, xiaoweix@andromeda.rutgers.edu 1 - Co-Advertising and Channel Power in Distribution Channels Xiaowei Xu, Associate Professor, Rutgers Business School-New Brunswick, 100 Rockafeller Rd., Piscataway, NJ, 08854, United States of America, xiaoweix@andromeda.rutgers.edu We study a manufacturer-retailer channel, in which the manufacturer decides wholesale price as the channel leader and the retailer decides the retail price as the channel follower. Besides the retail price, customer demand is influenced by non-price marketing instruments, such as advertising. We identify business scenarios, under which the manufacturer should not participate any co- advertising campaign even if it’s free, since doing so will increase the channel power of the retailer. 2 - Effects of Channel Intermediaries on Quality-price Competition S. Chan Choi, Rutgers Business School-New Brunswick, 100 Rockafeller Road, Piscataway, NJ, 08854, United States of America, chanchoi@rci.rutgers.edu We show that when products are vertically differentiated, the optimal channel structure depends on whether a company is a high- or low-quality producer. Either manufacturer benefits by channel integration while the competitor uses an intermediary, but this effect is stronger for the low-quality manufacturer. If an intermediary is to be used, the low-quality manufacturer has more incentive to use an exclusive dealer. But the total channel profit is higher with a common retailer. 3 - Fairness in Supply Chain Contracts with Sales Efforts Ju Myung Song, Rutgers Business School, Room 430, 1 Washington Park, Newark, NJ, 07102, United States of America, jumyung.song@rutgers.edu Fairness is an important incentive for supply chain contract design. I consider a setting where a retailer chooses both retail price and sale effort to maximize profit, and analyze how fairness in a supply chain affects supplier and retailer’s behaviors and their expected profits. 4 - A Longitudinal Analysis of Supplier Working Relations in Component Markets Sengun Yeniyurt, Associate Professor, Rutgers Business School, 100 Rockafeller Rd, Piscataway, NJ, 08854, United States of America, yeniyurt@business.rutgers.edu, Steven Carnovale, John W. Henke This study utilizes a longitudinal dataset that includes information regarding supplier working relations and sourcing transactions in the North American Automotive industry. Econometric models are developed and estimated utilizing information provided by first tier component suppliers to major automotive manufacturers. The estimates reveal the interplay between past interactions, future expectations, and working relations and their effect on transactional decisions in component markets.

4 - Optimal Integration of Kidney Exchange Programs with Antibody Reduction Therapy Naoru Koizumi, Assoc Professor, GMU, 3351 N Fairfax Dr, Arlington, VA, 22203, United States of America, nkoizumi@gmu.edu, Monica Gentili, Keith Melancon Kidney paired donation (KPD) allows incompatible pairs to exchange kidneys with other incompatible pairs. However, evidence suggests there stills exist barriers to KPD utilization, especially among difficult-to-match transplant candidates and positive actual or virtual crossmatches. Using mathematical models, we investigate how to optimally integrate antibody reduction therapy in KPD to increase successful living-donor kidney transplants among difficult to match candidates.

TC38 38-Room 415, Marriott Queueing Models II Contributed Session Chair: Benjamin Legros, Ecole Centrale Paris,

Grande Voie des Vignes, Chatenay-Malabry, 92290, France 1 - A New Look at Markov Processes of G/M/1-type Jason Joyner, PhD Student, Clemson University, Clemson University O-110 Martin Hall, Box 340975, Clemson, SC, 29634, United States of America, jjoyner@g.clemson.edu We present a new method for deriving the stationary distribution of an ergodic Markov process of G/M/1-type in continuous-time. Our method derives and makes use of a new representation for each element of the rate matrices contained in the stationary distribution. This method can also be modified to derive the Laplace transform of each transition function associated with Markov processes of G/M/1-type. 2 - Exact Simulation of Non-Stationary Reflect Brownian Motion We discuss the challenges that arise in the planning simulations of systems with time dependent arrival and service rates. Estimating how far back in time a simulation must be initialized is an essential problem in planning simulations. We propound using reflected Brownian motion (RBM) with time-dependent drift and volatility as a guide for estimating this initialization time. We develop the first exact simulation method for RBM with time-dependent drift and volatility. 3 - Traffic Volume and Travel Time Variability under Random Interruptions Marcelo Figueroa, PhD Student, Rutgers University, 93 Marvin We show the advantages of modeling the number of vehicles on a freeway corridor as an M/M/Infinity queueing system subject to random service degradation in order to obtain variability estimates for congestion and travel time delay. We make use of the analytical stationary distribution of the number of customers thus avoiding the use of traffic simulation. We validate our approach by using traffic count data, and relevant weather events and traffic incidents as causes of service degradation. 4 - Admission Control Policies for Multi-Channel Call Centers: Should We Delay the Call Rejection? Benjamin Legros, Ecole Centrale Paris, Grande Voie des Vignes, Chatenay Malabry, France, belegros@laposte.net We study strategies of rejection in call centers with inbound and outbound calls. The firm is looking for the best possible trade-off between the inbound and outbound calls performance. Rejection at arrivals, so-called rejection “a priori” and rejection after experimenting some wait, so-called rejection “a posteriori” are considered. Our main finding is that rejection a posteriori provides a better performance in terms of waiting time for served customers than a rejection a priori. Mohammad Mousavi, Assistant Professor, University of Pittsburgh, 1048 Benedum Hall, Pittsburgh, PA, 15212, United States of America, mousavi@pitt.edu Lane, Piscataway, NJ, 08854, United States of America, marcelo.figueroa@rutgers.edu, Melike Baykal-görsoy

TC40 40- Room 101, CC Marketing I Contributed Session

Chair: Robert Bordley, Expert Systems Engr Professional, Booz-Allen-Hamilton, 525 Choice Court, Troy, MI, 48085, United States of America, Bordley_Robert@bah.com 1 - How Cultural Difference Influences Consumer Behavior in Hypermarket Industry Mei-Wen Chao, Assistant Professor, Kao Yuan University, 1821 Zhongshan Rd., Luzhu Dist., Kaohsiung, 82151, Taiwan - ROC, t80149@cc.kyu.edu.tw No empirical research exists to discuss the issues of culture and consumer behavior in the hypermarket industry using the territory of Taiwan and the U.S. as the units of comparison. This paper attempted to explore grocery consumers’ inner world and how their shopping perceptions vary between Taiwanese and American cultures. The contexts of interviews are given and additional findings are also put forward. Salient results and practical issues are discussed in detail in this paper.

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