2015 Informs Annual Meeting

WB47

INFORMS Philadelphia – 2015

WB48 48-Room 105A, CC Information-Related Issues in Supply Chain Management Sponsor: Manufacturing & Service Oper Mgmt/iFORM Sponsored Session

2 - On Public Warnings in Counterterrorism Operations Nitin Bakshi, London Business School, Regent’s Park, London, United Kingdom, nbakshi@london.edu, Edieal Pinker Public warnings, or terror alerts, might be a victim of their own success. Previous alerts that negated an attack result in the perception of a false alarm. We study the trade-off between the short-term benefit of a deferred attack, and long-term costs such as erosion of credibility through false alarms. 3 - Dynamic Pricing, Product Evaluation Behavior, and Evolution of Product Reviews Necati Tereyagoglu, Assistant Professor of Operations Management, Scheller College of Business, Georgia Institute of Technology, 800 W Peachtree St. NW, Suite 4424, Atlanta, GA, 30308, United States of America, Necati.Tereyagoglu@scheller.gatech.edu Product review posters can exhibit bandwagon or differentiation behavior in their evaluations in online marketplaces. Such differences can cause changes in the composition of the posters over time, which in turn influence the evolution of the ratings environment. In this paper, we examine the relationship between the composition of posters and the evolution of the ratings environment, leading to its effect on consumers’ purchase behavior, and dynamic pricing decisions of a monopolist. WB47 47-Room 104B, CC Sustainable Supply Chain Sponsor: Manufacturing & Service Oper Mgmt/Sustainable Operations Sponsored Session Chair: Xi Chen, Assistant Professor, University of Michigan-Dearborn, 4901 Evergreen Rd, Dearborn, MI, 48128, United States of America, xichenxi@umich.edu 1 - Service Region Design for Urban Electric Vehicle Sharing Systems Long He, University of California, Berkeley, 1117 Etcheverry Hall, University of California, Berkeley, CA, 94720, United States of America, longhe@berkeley.edu, Zuo-jun Max Shen, Ho-Yin Mak, Ying Rong We consider the service region design problem for electric vehicle sharing systems. We then develop a model that incorporates both customer adoption behavior and fleet operations under spatially-imbalanced and time-varying travel patterns. To address the uncertainty in adoption patterns, we employ a distributionally-robust optimization framework. Applying this approach to the case of Car2Go’s service in San Diego, CA, with real operations data, we address a number of planning questions. 2 - Sourcing under Supplier Responsibility Risk: The Effects of Certification, Audit and Contingency Pay Li Chen, Associate Professor, Cornell University, 114 East Ave, Ithaca, NY, United States of America, li.chen@cornell.edu, Hau Lee Companies that source from emerging economies often face supplier responsibility risks, namely, financial and reputational burdens that the companies have to bear when their suppliers’ engagement in noncomplying labor and environmental practices is discovered by stakeholders or becomes public. In this paper, we study how certification, audit and contingency payment can help mitigate such risks. 3 - Green Sourcing-the Role of Premium Sharing and Consulting Services Xi Chen, Assistant Professor, University of Michigan-Dearborn, 4901 Evergreen Rd, Dearborn, MI, 48128, United States of America, xichenxi@umich.edu, Niyazi Taneri, Saif Benjaafar Certified sustainable products often times enjoy a significant green premium in the retail market. In this paper, we study a retailer’s use of a sourcing contract as a tool of incentivizing suppliers to exert greening efforts which improves the chances of receiving certification, and in turn capturing the green premium. We also explore the rationale for retailer to involve in suppliers’ greening efforts. 4 - Optimal Feed-in Tariff Policies: The Role of Technology Manufacturers Shadi Goodarzi, PhD Student, HEC Paris, 1 Rue de la Liberation, Jouy en Josas, 78350, France, shadi.goodarzi@hec.edu, Andrea Masini, Sam Aflaki We assess the effectiveness of feed-in tariff policies in promoting renewable energy technologies taking into account technology manufacturers’ decisions. Modeling a three-tier supply chain that includes potential adopters, technology manufacturers and a grid operator, we show that the ability of feed-in tariffs to induce renewable energy adoption is strongly affected by the technology manufacturers’ market characteristics.

Chair: Mohammad Nikoofal, Catolica Lisbon School of Business & Economics, UCP, Palma de Cima, Lisbon, 1649-023, Portugal, mohammad.nikoofal@ucp.pt Co-Chair: Mehmet Gumus, McGill University, 1001 Sherbrooke Street West, Montreal, Canada, mehmet.gumus@mcgill.ca 1 - Generalized Reverse Auctions: Efficiency and Credibility under Information Asymmetry Hedayat Alibeiki, McGill University, 1001 Sherbrooke St. West, Montreal, Qc, H3A 1G5, Canada, hedayat.alibeiki@mail.mcgill.ca, Mehmet Gumus, Shanling Li Non-price factors such as product quality and reliability can be even more important than bidding prices for the buyers when selecting the winner of an e- Auction. In practice, buyers usually evaluate and assign an originally-private “quality score” to each supplier that determines the relative position of the supplier toward its competitors. In this paper, we study whether or not and in what fashion the buyer can credibly share suppliers’ quality scores with them. 2 - Towards a Counterfeit Proof Global Supply Chain Morteza Pourakbar, Rotterdam School of Management, Erasmus University, Rotterdam, the Netherlandsmpourakbar@rsm.nl, Rob Zuidwijk In this paper, we study the role of customs inspection policies on mitigating the infiltration of counterfeiters in the legitimate supply chains. We characterize customs optimal inspection policies taking into account the trade-off between reducing the risk of infiltration and the detrimental impact of increased inspections on supply chains. 3 - Impact of Category Captainship on Retail Competition Alper Nakkas, Associate Professor, Nova SBE, UNLFE, Campus de Campolide, NIF 506030636, Lisbon, 1099-032, Portugal, alper.nakkas@novasbe.pt The increasing complexity of product categories led retailers to recognize that managing categories would be increasingly complex, time-consuming and expensive. To answer these challenges and gain competitive edge, retailers began partnering with their suppliers (i.e., category captains) for recommendations about assortment selection, shelf design, displaying issuesÖetc. We examine the incentives of category captains in a setting where two retailers compete to increase their market shares. 4 - Supply Diagnostic Incentives in New Product Launch Mohammad Nikoofal, Católica Lisbon School of Business & Economics, UCP, Palma de Cima, Lisbon, 1649-023, Portugal, mohammad.nikoofal@ucp.pt, Mehmet Gumus In launching new products, the newness of the production leads to unexpected reliability issues on supply side. The adverse effect of supply risk can be mitigated via test production. We explore how such a diagnostic technology investment may affect both incentive and information asymmetries across channel partners. WB49 49-Room 105B, CC Supermodularity and its Applications in Operations Management Sponsor: Manufacturing & Service Oper Mgmt/Supply Chain Sponsored Session Chair: Daniel Zhuoyu Long, Assistant Professor, The Chinese University of Hong Kong, Shatin, N.T., Hong Kong - PRC, zylong@se.cuhk.edu.hk Co-Chair: Xin Chen, University of Illinois at Urbana-Champaign, Dept. of Industrial & Enterprise Systems, 216C Transportation Building, Urbana, IL, 61801, United States of America, xinchen@illinois.edu 1 - Preservation of Structural Properties When Decision Variables Are Truncated by Random Variables Xiangyu Gao, ISE department, UIUC, 04Transportation Building 104 S. Mathews, Urbana, IL, 61801, United States of America, xgao12@illinois.edu, Zhenyu Hu, Xin Chen A common technical issue in many operations management models is decision variables are truncated by random variables. The challenge is that the objective functions are often not convex in the decision variables. To address this challenge, we develop a powerful transformation technique which converts a non-convex

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