2015 Informs Annual Meeting

TC46

INFORMS Philadelphia – 2015

TC47 47-Room 104B, CC Topics in Remanufacturing and Recycling Sponsor: Manufacturing & Service Oper Mgmt/Sustainable Operations Sponsored Session Chair: Gal Raz, Associate Professor, Ivey Business School, Western University, 1255 Western Road, London, ON, Canada, RazG@darden.virginia.edu Co-Chair: James Abbey, Texas A&M University, 4217 TAMU 320P, College Station, TX, 77843, United States of America, jabbey@mays.tamu.edu 1 - Recycling as a Strategic Supply Source Gal Raz, Associate Professor, Ivey Business School, Western University, 1255 Western Road, London, ON, Canada, RazG@darden.virginia.edu, Gilvan (Gil) Souza In this paper we investigate how recycling can be used as a strategic source of supply in the presence of competition and a powerful material supplier. We examine the economic and environmental impact of a manufacturer’s decision to recycle its products and the implications on the customers, supplier and society as a whole. 2 - The Effect of Environmental Regulation on DFE Innovation: Social Cost in Primary/ Secondary Markets Cheryl Druehl, George Mason University, 4400 University Dr MS 5F4, Fairfax, VA, 22030, United States of America, cdruehl@gmu.edu, Vered Blass, Gal Raz We examine DfE innovations in the use stage and for refurbishing of a firm selling new primary market products and refurbished products in a separate secondary market. The firm determines innovations, prices, and fraction collected. Using LCA data from cell phones, we compare EPR and Use stage regulations on profits and environmental impact. 3 - New Versus Refurbished: Key Factors that Influence Consumers’ Decisions Erin Mckie, University of South Carolina, 1014 Greene Street, Columbia, SC, 29208, United States of America, erinmckie@gmail.com, Mark Ferguson, Michael Galbreth, Sriram Venkataraman Remanufacturing is increasingly providing new profit opportunities for firms, and more product condition options – such as new, refurbished, and used – for consumers to choose between. Using secondary data and choice model analysis techniques, this study estimates the influence of various factors on consumers’ purchasing decisions. 4 - The Value of Competition in Remanufacturing Narendra Singh, Georgia Institute of Technology, Atlanta, GA, United States of America, Narendra.Singh@scheller.gatech.edu, Karthik Ramachandran, Ravi Subramanian We study an OEM’s product strategy when the OEM offers a new product that depreciates over time and consumers are strategic. The OEM competes with a third-party remanufacturer for acquisition and remanufacturing of the depreciated products. We study how competition from the third-party remanufacturer affects the OEM. Managing Finances and Risk in Supply Chains Sponsor: Manufacturing & Service Oper Mgmt/iFORM Sponsored Session Chair: Danko Turcic, Associate Professor Of Operations, Olin Business School, Washington University in St. Louis, St Louis, MO, United States of America, turcic@wustl.edu Co-Chair: Panos Kouvelis, Professor, Olin Business School, Washington University in St. Louis, St Louis, MO, United States of America, kouvelis@wustl.edu TC48 48-Room 105A, CC

4 - Selling a Dream: Pricing under Savoring and Anticipation Javad Nasiry, Assistant Professor, Hong Kong University of Science and Technology, ISOM, LSK Building, HKUST, Hong Kong, Hong Kong - PRC, nasiry@ust.hk, Ioana Popescu We study a market where customers derive emotional utility from anticipating pleasurable purchase outcomes, but experience disappointment if outcomes fall short of what they anticipated. In this context, we show that firms can profit by adopting randomized pricing policies. TC46 46-Room 104A, CC Issues Related to Supply Chain Management Sponsor: Manufacturing & Service Oper Mgmt/Service Operations Sponsored Session Chair: Achal Bassamboo, Professor, Kellogg School of Management, 2001 Sheridan Road, Evanston, IL, 60208, United States of America, a- bassamboo@kellogg.northwestern.edu 1 - Worker Poaching in a Supply Chain: Enemy from Within? Evan Barlow, Northwestern University, Evanston, IL, United States of America, e-barlow@kellogg.northwestern.edu, Gad Allon, Achal Bassamboo Poaching workers has become a universal practice. We explore worker poaching between firms linked in a supply chain. We show that the classical intuition from labor economics is insufficient in explaining poaching between supply chain partners. We also show how and under what conditions worker poaching can actually improve supply chain performance. Finally, we show how the equilibrium identity of the supply chain bottleneck depends on the interaction between hiring, poaching, and productivity. 2 - Dynamic Clustering and Assortment Personalization: The Value of Information Pooling Sajad Modaresi, Duke University, 100 Fuqua Drive, Durham, NC, United States of America, sajad.modaresi@duke.edu, Denis Saure, Fernando Bernstein A retailer faces heterogeneous customers with initially unknown preferences. The retailer can personalize assortment offerings based on available profile information; however, users with different profiles may have similar preferences, suggesting that the retailer can benefit from pooling information among customers with similar preferences. We propose a dynamic clustering approach that adaptively adjusts customer segments and personalizes the assortment offerings to maximize cumulative profit. 3 - Policing a Self-policing Firm: Incentives for Detection and Disclosure of Compliance Violations Sang Kim, Yale School of Management, New Haven, CT, United States of America, sang.kim@yale.edu One of the challenges in enforcement of environmental regulations is designing an effective incentive mechanism that elicits firms’ voluntary detection and disclosure of compliance violations. with a right incentive, a firm self-polices its internal operations to detect random violations before a regulator does, and subsequently puts a remedial action in place. We study this incentive dynamic using a game-theoretic framework. 4 - Reshoring Manufacturing: Supply Availability, Demand Updating, and Inventory Pooling Bin Hu, Assistant Professor, UNC Kenan-Flagler Business School,

CB#3490 McColl Bldg, University of North Carolina, Chapel Hill, NC, 27519, United States of America, Bin_Hu@kenan-flagler.unc.edu, Li Chen

Reshoring shortens the distance from factory to market, however limited onshore supply availability may force reshoring manufacturers to remain dependent on offshore suppliers, leading to increased distance from supplier to factory. In this case, we show that manufacturers’ preferences toward reshoring boil down to trade-offs between operational flexibilities. We characterize when manufacturers prefer reshoring, and further identify operational strategies that can swing such preferences.

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