2015 Informs Annual Meeting

WC41

INFORMS Philadelphia – 2015

WC40 40- Room 101, CC Operations Management/Marketing Interface II Contributed Session Chair: Prateek Raj, PhD Student, Department of Management Science and Innovation, UCL, Gower Street, London, WC1E 6BT, United Kingdom, p.raj.12@ucl.ac.uk 1 - Context Dependent Preferences and Bundling Strategy The bundling literature explains pure components strategy and pure bundling strategy are optimal in perfectly and imperfectly competitive industries, respectively. However, when consumers respond to distinct product portfolios and exhibit context-dependent preferences, the optimal bundling strategy may change. This paper finds this consumer behavior boosts the introduction of the bundle and mixed bundling strategy is optimal under certain conditions. 2 - Dominant Retailer’s Strategic Response to Efficient Fringe Retailers Zhong Chen, PhD Student, The Chinese University of HongKong, Room 943, Cheng Yu Tung Building,, The Chinese University of Dominant retailers like Walmart has the power to negotiate their suppliers to get more favourable contract terms while fringe retailers lack such market power. Industry evidences indicates that fringe retailers are becoming more efficient in their operations which puts pressure on dominant retailers to become even more aggressive in their procurement contracts. We present a model to study strategic response of a dominant retailer to such improvement in operational efficiency of fringe retailers. 3 - Licensing Contracts in Conspicuous Markets Prateek Raj, PhD Student, Department of Management Science HongKong, N.T., HongKong, Hong Kong - PRC, zhongchen@baf.cuhk.edu.hk, Ehsan Bolandifar Qianbo Yin, CUHK, Room 941, CYT, CUHK, HK, HK, Hong Kong - PRC, qianboyin@gmail.com, Sean Zhou

4 - An Efficient VNS Heuristic for the Pickup and Delivery Traveling Salesman Problem with FIFO Jin Qin, Doctoral Student, Huazhong University of Science & Technology, 1037 Luoyu Road, Wuhan, China, Wuhan, China, qinjinhust@gmail.com, Qinghua Wu, Xianhao Xu In this paper, we present an variable neighborhood search(VNS) algorithm to solve an variant of the traveling salesman problem with pickup and delivery(TSPPD), named the TSPPD with first-in-first-out loading (TSPPDF). The VNS heuristic cooperate with a Simulated Annealing(SA) and two Tabu Search(TS)to solve this problem. Numerical experiment results show that the proposed heuristic produces better solutions than do the previous methods in relatively short computing times. 5 - Heuristic Methods for Automotive Stamping Scheduling Sayak Roychowdhury, PhD Student, The Ohio State University, 1971 Neil Avenue, Columbus, Oh, 43210, United States of America, roychowdhury.6@osu.edu, Theodore Allen A major automotive manufacturer plans parts to be made by a large stamping machine on a seven day basis to conform to an overall vehicle schedule. The problem involves setups, part and die set families, storage constraints, and the possibility of downstream process starvation. Multiple heuristics are compared in terms of solution quality and computational speed. WC39 39-Room 100, CC Operations Management and Marketing Interface Cluster: Operations/Marketing Interface Invited Session Chair: Shuya Yin, University of California, Irvine, Merage School of Business, Irvine, United States of America, shuya.yin@uci.edu 1 - Impact of Media Substitution and Synergy in Media Planning Decisions for A New Product Introduction Vahideh Abedi, Assistant Professor, California State University Fullerton, Fullerton, CA, United States of America, vabedi@exchange.fullerton.edu, Dmitry Krass, Oded Berman Substitutive and synergic interactions between multiple marketing media can significantly influence media planning strategies of firms. However, the existing literature focuses on only one of these two types of interactions. We show that most typically channel interactions are both substitutive and synergistic at the same time in the context of a new product introduction. We derive several insights on the implications of this co-existence and its influence on the firm’s media planning decisions. 2 - Balanced or Unbalanced Market Structure? An Upstream Supplier’s Perspective Yuhong He, Assistant Professor, California State University, Upstream suppliers often need to decide whether or not to reply on dominant retailers in the market place when they sell through the downstream partners. We propose an economic model to gain some understanding of the basic trade- offs involved in such decision making processes. 3 - Setting the Optimal Pledge and Target in Crowdfunding Campaigns Rachel Chen, Associate Professor, rachen@ucdavis.edu, Esther Gal-or, Paolo Roma Crowdfunding campaigns (of consumer products) allow the entrepreneur to raise funds from the crowd, and, if succeeded, sends a positive signal to the VC about how the product is likely to be received by consumers. If the campaign fails, however, the entrepreneur will have great difficulty getting funded by the VC. This paper examines the entrepreneur’s decision in setting the pledge and the target in crowdfunding campaigns. 4 - A Generalized Model on Forecasting Repeat Sales Yibo Zhou, Ruixia Shi We propose a stochastic model to forecast customers’ repeat purchasing. We extend the traditional mixture distribution model (negative binomial distribution) to the general situation, which fully captures customers’ heterogeneity. The generalization is made possible through using the Gaussian quadrature. The model retains the elegance of NBD framework and can be easily implemented. Our results show that the proposed method outperforms the traditional forecast methods. Fullerton, Fullerton, United States of America, yuhe@fullerton.edu, Shuya Yin, Saibal Ray

and Innovation, UCL, Gower Street, London, WC1E 6BT, United Kingdom, p.raj.12@ucl.ac.uk, Kenan Arifoglu

We study licensing decision of a brand-owning firm that sells its primary product to conspicuous customers, who value the brand exclusivity, and also licenses its brand name to a licensing firm. We compare fixed-fee and royalty contracts, and develop a mixed contract that improves the profit and coordinates the system.

WC41 41-Room 102A, CC Healthcare Operations Sponsor: Manufacturing & Service Oper Mgmt/Healthcare Operations Sponsored Session

Chair: Van-Anh Truong, Columbia University, 500 West 120th St, New York, NY, 10027, United States of America, vt2196@columbia.edu 1 - Online Advance Admission Scheduling for Services, with Customer Preferences Xinshang Wang, Columbia University, 500 West 120th St, New York, NY, 10027, United States of America, xw2230@columbia.edu, Van-Anh Truong We study web and mobile applications that are used to schedule advance service, from medical appointments to restaurant reservations. We give the first online, data-driven algorithms with performance guarantees for these problems. We show that the average performance of our algorithms is bounded by 1/2 times that of an optimal algorithm. We test the empirical performance of our algorithms by using data from a department within a major academic hospital system in New York City. 2 - Service Encounters in Outpatient Clinics Michele Samorani, Assistant Professor, University of Alberta, 3-20F Business Building,, University of Alberta, Edmonton, AB, T6G 2R6, Canada, samorani@ualberta.ca, Dan Zhang The appointment scheduling literature typically focuses on “individual appointments”which may end with a no-show, a cancellation, or a patient arrival. However, cancellations and no-shows are often followed (possibly with some time lag) by rebooking another individual appointment, until the patient finally sees the doctor. We empirically study such sequences of individual appointments, which we call service encounters, and discuss the implications of our findings on capacity planning.

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