2015 Informs Annual Meeting

WB60

INFORMS Philadelphia – 2015

2 - Dynamic Energy Inventory Management for Wastewater Treatment

agents who can acquire costly information and vote to allocate resources to an uncertain project. We test our predictions in the setting of venture capital, where partners make their own angel investments. We find the venture capital partners, acting independently, make riskier investments, but have equivalent financial performance. 2 - Alliance Diversity and Multilateral Strategic Alliance Performance: A Faultline Perspective Angelo Solarino, City Univeristy of Hong Kong, Chee Avenue, Kowloon, Hong Kong, Hong Kong - PRC, mgangelo@cityu.edu.hk, Tao Bai We examine the effects of alliance diversity on alliance performance from a faultline perspective. We assess how firms’ interacting multiple attributes influence the alliance performance jointly. We differentiate demographic from informational faultlines and tested their effects based on global pharmaceutical alliances. Contrary to previous studies, we find that both kinds of faultlines positively influence the alliance performance. Theoretical and methodological implications are discussed. 3 - Effects of Regional, National and Subnational Institutions On Firm Performance – Meta-analysis Tao Bai, Assistant Professor, Xi’an Jiaotong-Liverpool University, Suzhou Industrial Park, Suzhou, China, baitao2010@gmail.com, Angelo Solarino, Frank Mcdonald There has been a growing attention to globalization-regionalization debate in international business. To better answer the phenomenon, we conduct a meta- analysis to assess the strengths of supranational, national, and subnational institutions on firm performance. We further explore the moderating effect of international relations between countries, industry, and firm size, to help clarifying the research landscape. Theoretical implications and future research opportunities are discussed. 4 - Strategic Sourcing in the Industrial Gas Bulk Supply Chain Mukesh Rungta, Research Scientist, Air Liquide, 200 GBC Dr, Newark, DE, 19702, United States of America, mukeshrungta@gmail.com In a vendor managed inventory context, effective strategic sourcing is particularly important and can have significant impact on operational costs. Within the context of the industrial gas supply chain, this presentation will focus upon the assignment of customers to production sources and transportation depots in order to minimize the total landed cost subject to production and distribution constraints. A methodology will be outlined and example cases discussed. 5 - Vertical Integration, Industry Relatedness, and the Agglomeration of Multi-business Firms Juan Alcacer, Harvard Business School, Soldiers Field, Boston, United States of America, jalcacer@hbs.edu, Jasmina Chauvin We provide new insights into firm boundary decisions by comparing location strategies of multi-business and single-business firms in the same industry. We find that establishments belonging to multi-business firms agglomerate more, and the difference is related to the potential for sharing of labor resources. Our results suggest that strategic decisions about the geographic and product boundaries of the firm are intimately related, and that resource sharing is implicated in both decisions. WB60 60-Room 111A, CC Green Manufacturing Contributed Session Chair: Kejia Hu, Kellogg School of Management, Northwestern University, 2169 Campus Drive, Evanston, United States of America, k- hu@kellogg.northwestern.edu 1 - Electrical Demand Elasticity of Industrial Loads Mostafa Ghafoorivarzaneh, University of Tennessee-Knoxville, 851 Neyland drive, 511 John D. Tickle Building, Knoxville, TN, 37996, United States of America, mghafoor@utk.edu, Rupy Sawhney In the first phase, an optimization model will be introduced for production planning which considers different states of energy consumption (idle, working, setup, startup states) in addition to traditional production planning parameters. In the second step, a DOE will be developed based on real data of production, energy consumption and historical data of LMP. As the result distribution of elasticity and elasticity matrix will be introduced as a function of production parameters.

Jing Ma, Ph.d Candidate, Stanford University, 145M, 475 Via Ortega, Stanford, CA, 94305, China, jingma@stanford.edu, Craig Criddle, Erica Plambeck, Sebastien Tilmans In this work we aim to optimize energy production and consumption to boost revenue for Wastewater treatment plants. Specifically, using the data from Plants in San Francisco, we analyze the potential benefits of controlling the magnitude of influent sewage pumping rate to minimize energy cost or total emission. We also suggest an easy-to-implement heuristic for Wastewater treatment plants. 3 - Dynamic Regulatory Distortion: Coal Procurement at U.S. Power Plants Akshaya Jha, Assistant Professor, Carnegie Mellon University, 5000 Forbes Avenue, Pittsburgh, PA, 15213, United States of America, akshayaj@stanford.edu I estimate a dynamic, plant-level model of coal purchase with storage for U.S. electricity generation plants. Holding constant the plant’s pattern of input prices and output, I find that it costs a regulated plant roughly 3% more per month to procure coal relative to the same plant facing market prices. This 3% increase in costs stems primarily from dynamic distortions to when and how often regulated plants purchase coal, rather than static differences in the level of coal stockpiles held. WB58 58-Room 110A, CC Non-Convex Equilibrium Problems Sponsor: ENRE – Energy II – Other (e.g., Policy, Natural Gas, Climate Change) Sponsored Session Chair: Miguel Anjos, Polytechnique Montreal, Mathematics and Industrial Engineering, Montreal, Canada, miguel-f.anjos@polymtl.ca 1 - An RIT Approach for Solving the Binary-constrained Mixed Linear Complementarity Problem Franklin Djeumou Fomeni, Postdoc, Ecole Polytechnique Montreal, 5960 Rue Dumas, Montreal, QC, H4E 2Z6, Canada, franklin@aims.ac.za, Miguel Anjos, Steven Gabriel The BC-MLCP is a formulation of the MLCP in which some variables are restricted to be binary. This paper presents a novel approach for solving the BC- MLCP. First we solve a series of LPs that enables us to replace the complementarity constraints with linear equations. Then we solve an equivalent MILP formulation of the BC-MLCP to guarantee a solution to the problem. Our computational results on a variety of test problems demonstrate the usefulness and effectiveness of our novel approach. 2 - Energy Pricing Problems for Demand Side and Revenue Management Luce Brotcorne, INRIA, Parcs Scientifique de la Haute Borne, 40 Avenue Halley, Bat-B Park Plaza,, Villeneuve d ascq, 59650, France, luce.brotcorne@inria.fr, Sezin Afsar, Patrice Marcotte, Gilles Savard Pricing models for demand side management methods are traditional used to control electricity demand which became quite irregular recently and resulted in inefficiency in supply. We propose bilevel models to explore the relation and between energy suppliers and customers who are connected to a smart grid. This approach enables to integrate customer response into the optimization process of supplier who aims to maximize revenue or minimize capacity requirements. Numerical results are given. WB59 59-Room 110B, CC Strategy/Strategic Planning I Contributed Session Chair: Mukesh Rungta, Research Scientist, Air Liquide, 200 GBC Dr, Newark, DE, 19702, United States of America, mukeshrungta@gmail.com 1 - Organizational Decision-making and Information: Angel Investments by Venture Capital Partners Andy Wu, PhD Candidate in Applied Economics, The Wharton School of the University of Pennsylvania, 3620 Locust Walk, Suite 3000, Philadelphia, PA, 19104, United States of America, andywu@wharton.upenn.edu We study the role of information in organizational decision-making for the financing of entrepreneurial ventures. We formally model a decentralized set of

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