2015 Informs Annual Meeting

TD05

INFORMS Philadelphia – 2015

3 - A Critique of Empirical Tests on the Inventory-performance Relationship in U.S. Manufacturing Daesung Ha, Professor, Marshall University, 415 Corbly Hall, 1 John Marshall Drive, Huntington, WV, 25755, United States of America, ha@marshall.edu In this study, we discuss the estimation errors and the model specification problem of the existing studies which investigated the relationship between inventory productivity and firm performance in U.S. manufacturing industry. Using the panel data of U.S. manufacturing firms over the period of 1980–2014 collected from the Compustat database, we provide the corrected estimation results. 4 - The Effect on Inventories Assets Turnover Change Ratio by Firm Characteristics Jihye Lee, Kyungpook National University, Sangyeok 3-Don Buk-Gu, Daegu, Korea, Daegu, Korea, Republic of, jj2083@gmail.com, Pansoo Kim This study analyzed the effect on ratio of change of inventories turnover by firm characteristics using panal data targeting manufacturing companies listed on the Korea Stock Exchange securities market since Januaru 1, 1999 to December 31, 2012. Firm size, sales growth rate, ROA(return on assets), leverage ratio, credit rating, age of firm were used as a 6 important firm characteristic variables. 5 - Service Management in Dynamic Online Markets with Positive and Negative Word of Mouth Ruiqi Hou, University of Science and Technology of China, East Campus USTC, No. 96 Jinzhai Road, Room 367-414, Hefei, 230026, China, qiqimath@gmail.com We consider that comments online may lead to customers’ leaving the market. We use the effect that value for money level may have on market size to measure the economic effect. The model considers both single and two-firm model and the decision is setting investment cost. Customers are distinguished by their types which induce heterogeneous rates of adoption information. The information of value for money level diffuses and affects the transitions of consumers. We establish conditions for a Nash equilibrium policy. TD04 04-Room 304, Marriott Economics I Contributed Session Chair: Patrick O’Reilly, PhD Candidate, Mineral And Energy Economics, Colorado School of Mines, P.O. Box 11, Golden, CO, 80402, United States of America, poreilly@mines.edu 1 - Foreign Direct Investment and Organized Crime in Mexico: A Spatial Approach Lorena Berumen, Head Of Academic Area In Operations Management, Universidad Panamericana, Augusto Rodin 498, Ciudad de México, Mexico, laberumen@up.edu.mx, Roldán Andrés-rosales, Margarita Hurtado Foreign Direct Investment (FDI) has played an important role in the growth and development of the Mexican economy. In this paper our main contribution is the analysis of FDI by sector and its spillover effect in the different regions in which FDI has ben concentrated. Using spatial panel data and a spatial Durbin Model to assess the direct and indirect effects of FDI on the sectors affected by organized crime. 2 - The Role of Social Planner in Closed-loop Supply Chain Lan Wang, Assistant Professor, California State University at East Bay, 25800 Carlos Bee Blvd., Hayward, CA, 94401, United States of America, lan.wang@csueastbay.edu, Tharanga Rajapakshe, Asoo Vakharia Our paper studies the problem of legislation practices on who should be responsible for recycling, and compares the existing mechanisms on the efficiency of environmental protection. Given different social objectives – prioritized consumer welfare, prioritized environmental benefit, or jointly social objective, we aim to provide roadmap to the social planner on legislation and incentives for remanufacturing and the end-of-life/use product recycling activities. 3 - Modelling Heterogeneous Economies – Two Competing Paradigms Grzegorz Koloch, Warsaw School of Economics, Al. Niepodleglosci 162, Warsaw, 02-554, Poland, gkoloch@gmail.com, Mateusz Zbikowski, Bogumil Kaminski Two modelling paradigms gained most popularity in the field of heterogeneous agent macroeconomic modelling: the heterogeneous agent DSGE models and Agent Based Macroeconomic simulation models. The first approach, is based on neoclassical foundations and uses dynamic programming paradigm. It is considered to be a mainstream. The second one still is not used to a comparable extent both by researchers and policy makers. In this paper we propose an explanation of the reasons for such a situation.

4 - An Optimization Model for Allocation and Routing of Municipal Solid Waste in Flanders Jens Van Engeland, KU Leuven Campus Brussels, Warmoesberg 26, Brussels, 1000, Belgium, jens.vanengeland@kuleuven.be Historical evolutions and inter-municipal cooperations decide on the current allocation of municipal solid waste (MSW) to treatment facilities in Flanders. However, in the near future the region will be confronted with a number of important waste dilemmas. Therefore it is important to know what gains could be achieved by redesigning the current allocation in the first place. The proposed model optimizes the allocation and routing of MSW from municipalities to treatment plants. 5 - A Network Formulation of Competing Demands for Water: Transaction Costs, Property Rights, and Rents Patrick O’Reilly, PhD Candidate, Mineral And Energy Economics, Colorado School of Mines, P.O. Box 11, Golden, CO, 80402, United States of America, poreilly@mines.edu Markets and centrally-planned regimes may be seen as having network structure, exhibiting not only spatial dependence, but transaction costs and the dual notion of economic property rights. Water allocation problems pose a range of institutional questions that network models may be uniquely suited to answer. This paper investigates transaction cost and economic rent consequences of choosing between market and command-oriented institutions in light of their respective network structure. Social Media Engagement Cluster: Social Media Analytics Invited Session Chair: Les Servi, The MITRE Corporation, 202 Burlington Road, Bedford, MA, United States of America, lservi@mitre.org 1 - Development and Evaluation of Tagalog LIWC Dictionaries for Negative and Positive Emotion Amanda Andrei, Graduate Student, Georgetown University, Washington, DC, United States of America aa1436@georgetown.edu Developing non-English sentiment analysis tools can ensure that data is not lost due to language. A proof-of-concept Tagalog Linguistic Inquiry and Word Count (LIWC) dictionary for positive and negative emotion was developed for use in analyzing mixed language Twitter data from the Philippines and evaluated against human-annotated sentiment for Twitter, referred to as groundtruth. 2 - Consumer Engagement with Green Brands on Facebook as Revealed in Refined Sentiment Analysis Tiffany Ting-Yu Wang, Associate Professor, College of Informatics,KNU, 70-7 Xianyan Rd. Lane 16, Taipei, No, 11688, Taiwan - ROC, tiffanyt.wang122@gmail.com The fast-growing number of social media users together with inundating user generated content has posed significant challenges to firms trying to detect consumers’ attitudes. This research aims to uncover consumer experiences with two green brands in the cosmetics industry through collecting and analyzing public Facebook posts. We refine sentiment analysis by applying the Tetraclasse model to identify social media context and/or green product attributes as satisfaction determinants. 3 - Tailored Incentives and Least Cost Influence Maximization on Social Networks Rui Zhang, University of Maryland, College Park, MD, United States of America, ruizhang@rhsmith.umd.edu, S. Raghavan We wish to promote a product over a social network and attain 100% adoption. We study a cost minimization problem where incentives can be tailored to each individual. A totally unimodular formulation is proposed for trees. Observing that the influence propagation network is acyclic, we apply this formulation (along with an exponential set of anti-cycle inequalities) to general networks. Next, a branch-and-cut approach is developed and used to solve problems on real-world graphs with 5000 nodes. 4 - Large-scale Bid Optimization in Online Advertising Auctions Mustafa Sahin, University of Maryland, Van Munching Hall 3330, College Park, MD, 20742, United States of America, mustafa.sahin@rhsmith.umd.edu, Abhishek Pani, S. Raghavan In sponsored search ads, the search operator collects bids for a given keyword and determines whose ads will be displayed in what position. The advertisers have to decide on keywords and positions to bid on given a budget, which can be modeled as a Multiple Choice Knapsack Problem. The number of keywords and positions considered can be in the order of hundreds of millions for this application. We offer an algorithm that is both time and memory efficient and present results on hard instances. TD05 05-Room 305, Marriott

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