2015 Informs Annual Meeting

TD53

INFORMS Philadelphia – 2015

3 - Deal or No Deal? The Quality Implications of Online Daily Deals and Competition Jorge Mejia, University of Maryland, Robert H. Smith School of

4 - Is Non-linear Pricing Contract Always Better than Linear Pricing Contract? Guangwen Kong, University of Minnesota, 111 Church Street SE, Minneapolis, MN, 55414, United States of America, gkong@umn.edu, Tony Haitao Cui We study supply chain contracts with consideration of information sharing and bounded rationality. We examine a dyadic supply chain where a supplier with more accurate demand information sells products to a bounded rational retailer. The research suggests that the supplier can be better-off by using a linear pricing contract than adopting a buy-back contract. The supplier either shares information with the retailer or help improve the retailer’s bounded rationality but not both in equilibrium. TD54 54-Room 108A, CC Meta-algorithms: From Algorithm Tuning and Configuration to Algorithm Portfolios Cluster: Tutorials Invited Session Chair: Meinolf Sellmann, IBM, Yorktown Heights, NY, United States of America 1 - Meta-algorithms: from Algorithm Tuning and Configuration to Algorithm Portfolios Meinolf Sellmann, IBM, Yorktown Heights, NY, United States of America Efficiency and accuracy are of primary concern when developing analytics solutions in OR. Typically, there is more than one possible algorithmic approach and none dominates the others. Moreover, algorithms usually have implicit or explicit parameters that greatly affect performance. Meta-algorithmics focuses on the development of effective automatic tools that tune algorithm parameters and, at runtime, choose the approach best suited for the given input. Here we summarize the lessons learned when devising such tools. TD55 55-Room 108B, CC Data Envelopment Analysis (DEA) Contributed Session Chair: Samir Srairi, Ministry of Higher Education and Scientific Research, 14 Avenue de Tunis, Arian, 2080, Tunisia, srairisamir3@gmail.com 1 - Combination of Hybrid Two Level DEA with SVM for Indicator Weighting in Financial Failure Prediction Chao Huang, Southeast University, Xuan Wu District, Sipailou No.2, Nanjing, 210096, China, huangchao@seu.edu.cn A new WPF two level DEA is proposed to identify the bankruptcy firms by constructing a worst-practice frontier. Combining traditional BPF two level DEA and WPF two level DEA, a hybrid model is put forward as a tool for cooperates financial failure prediction. To improve the accuracy, a new indicator weighting method based on SVM is also proposed. The empirical results show that the proposed hybrid method has excellent bankruptcy prediction ability. 2 - A Cross-Dynamic Evaluation of Warehouse Operations Jose Humberto Ablanedo Rosas, Associate Professor, University of Texas at El Paso, 500 W University Avenue, Marketing & Management Department, El Paso, TX, 79968, United States of America, jablanedorosas2@utep.edu, Faruk Arslan We report a cross-dynamic comparison of distribution centers worldwide. This problem has been analyzed with the Malmquist productivity index; we introduce an approach based on cross-efficiency assessment which eliminates the drawbacks of traditional cross-efficiency methods. A comparison between both approaches is discussed and managerial recommendations for decision makers are derived. 3 - Performance Evaluation of Dynamic Supply Chain using Dea Somayeh Mamizadeh-Chatghayeh, Asia Business Clusters & Networks Development (ABCD) Foundation Cooperation, Tehran, Tehran, Iran, somayeh_mamizadeh@yahoo.com, Abbas Ali Noura One of the main researches in supply chain management is to improve the overall efficiency based on dynamic performance of supply chain. In this paper, by developing the basic dynamic model, different methods for evaluating the supply chain are studied. Dynamic Data Evolution Analysis as an efficient tool is new research focus in supply chain benchmarking. We develop DDEA models that can be evaluating the overall efficiency of supply chains and subsystems.

Business, College Park, MD, United States of America, jmejia@rhsmith.umd.edu, Anand Gopal, Michael Trusov

Consumers use online reviews to inform purchasing decisions about many products / services. Moreover, online daily deals have become an important part of the marketing mix for merchants. The objective of this study is to understand the effect of daily deals on consumers’ quality perceptions, expressed through online reviews and investigate potential moderators for this effect, such as merchant characteristics and competition. We combine online reviews for restaurants from Yelp with data from online deals in a major American metropolitan area. We find that online deals have a significant negative effect on online reviews. Additionally, this effect is moderated by certain merchant characteristics such as price point and restaurant age. We also find that the reviews of merchants who do not offer deals are affected by nearby deal competition. We replicate our empirical findings by conducting three lab studies using subjects from MTurk and find consistent results, thus showing robustness. 4 - Swayed by the Numbers: The Consequences of Displaying Review Counts in Purchase Decisions Jared Watson, University of Maryland, College Park, MD, United States of America, jwatson@rhsmith.umd.edu, Michael Trusov, Anastasiya Pocheptsova Online retailers often display customers’ review to aid consumers’ decision- making. While prior literature postulates that an increase in review counts leads to an increase in consumers’ purchase intentions, the authors find an important corollary: holding purchase intentions constant, revealing a small review count systematically biases consumers’ preferences between choice options. Further, withholding review count information increases purchase intention relative to a small review count. These findings are contrasted with current retailer practices of revealing small review count information. Chair: Enno Siemsen, Associate Professor, University of Minnesota, 321 19th Ave S, Minneapolis, MN, 55455, United States of America, siems017@umn.edu 1 - Decision Dependent Bounded Rationality in Dual Sales Channel Management Ozalp Ozer, The University of Texas at Dallas, 800 West Campbell Road, Richardson, TX, United States of America, oozer@utdallas.edu, Kay-Yut Chen We experimentally study behaviors in a dual sales channel in which a manufacturer sells through his direct channel and an independent retailer. The channels compete on demand. The manufacturer sets the wholesale price for the retailer, and also delivery times for customers in his direct channel. The retailer decides on its inventory level. We show and discuss why bounded rationality differs, in the same subject pool, across three decisions and model the behavior as quantal response equilibrium. 2 - Behavioral Inventory Sharing Enno Siemsen, Associate Professor, University of Minnesota, 321 19th Ave S, Minneapolis, MN, 55455, United States of America, siems017@umn.edu, Hui Zhao The benefits of aggregating demand for reducing required safety stock investments in supply chains are well known. Yet if decision makers are decentralized and keep separate stockpiles of inventory, these benefits can only be reaped if they agree to transship their inventory to others. Using behavioral experiments, we explore the conditions under which decision makers share inventory, and the implication of inventory sharing on initial order quantities. 3 - Communication Strategies in Assembly Systems: An Experimental Investigation Jud Kenney, McGill University, Bronfman Building, Montreal, Canada, jud.kenney@mail.mcgill.ca, Jim Engle-Warnick, Saibal Ray This study investigates how supply chain partners in an assembly system react to three different strategies of communicating supply risk. Our behavioral experiment uses a minimum game to model suppliers deciding on the amount of capacity to build when facing certain end customer demand, but uncertain supply from their peers. We find effective communication strategies can significantly improve performance and such improvements are more significant under higher critical ratios. TD53 53-Room 107B, CC Inventory and Information Sharing Sponsor: Behavioral Operations Management Sponsored Session

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