2015 Informs Annual Meeting

WD01

INFORMS Philadelphia – 2015

3 - Organizational Structure of A Global Supply Chain in the Presence of a Gray Market Bosung Kim, Ph.d Student, KAIST(Korea Advanced Institute of Science and Technology), 85 Hoegiro, Dongdaemun-Gu, Seoul, Korea, Republic of, kim-bs@business.kaist.ac.kr, Kun Soo Park We consider the organizational structure of a multinational firm (MNF) that distributes its product to low-price and high-price markets. MNF competes with the gray marketer with parallel import. We analyze the impact of information asymmetry and consumers’ valuation difference in the choice of organizational structure. 4 - Does Transshipment Benefit Newsvendors under Limited Supply? Ziteng Wang, Department of Industrial and Systems Engineering, North Carolina State University, 111 Lampe Dr., Daniels 443, Raleigh, NC, 27695, United States of America, zwang23@ncsu.edu, Shu-cherng Fang In a supply chain consisting of one supplier and two newsvendor-type retailers, inventory transshipment after demand realization can benefit both newsvendors. When the supply capacity is limited, however, we find that one of the newsvendors may be hurt. Insights are discussed and a coordinating mechanism is designed. WC78 78-Room 301, CC Auctions/Mechanism Design Contributed Session Chair: Su Xiu Xu, The University of Hong Kong, LG108, Composite Building, HKU, Hong Kong, 999077, Hong Kong - PRC, xusuxiu@gmail.com 1 - Pro-competitive Rationing in Multi-unit Auctions Par Holmberg, Associate Professor, Research Institute of Industrial Organization, Box 55665, Stockholm, SE10215, Sweden, par.holmberg@ifn.se In multi-unit auctions, rationing rules break ties between multiple marginal bids. The standard approach is to ration marginal bids proportionally. This paper shows how bidding can be made more competitive if the rationing rule depends on the clearing price and gives increasing priority to bidders with a small volume of marginal bids at clearing prices closer to the reservation price. This can have almost the same effect on the competitiveness of bids as a doubling of the number of bidders. 2 - Modeling Electricity Coalition Payoff Disaggregation: A Multi-Agent Framework Abbas Ehsanfar, Stevens Institute of Technology, Babbio 516, 6th & River St., Stevens Institute of Tech., Hoboken, NJ, 07030, United States of America, aehsanfa@stevens.edu, Babak Heydari We formulate the electricity consumer and producer coalition in the electricity market. The cooperation is formulated according to the functionality of electricity day-ahead and real-time wholesale markets and a mathematical model is proposed to disaggregate the cooperative payoff among consumers. A multi-agent approach is applied to create a competitive realistic environment for participants. 3 - An Empirical Study on Recyclers’ Valuation of Plastic Bottle Recycling in Auctions in Japan In Japan, electronic bidding is conducted on contracts for recycling polyethylene terephthalate bottles in municipality-based auctions. Recyclers and municipalities are spatially distributed and recyclers can bid in certain municipalities. Predicted bottle amounts at auctions often differ from post-contract amounts. We use a structural model and data from these auctions to empirically examine the impact of recyclers’ distance from municipalities, and of amount differences, on their valuations. 4 - Social Welfare in Repeated Task Allocation in Transportation Qing Chuan Ye, Erasmus University Rotterdam, Burg. Oudlaan 50, Rotterdam, Netherlands, ye@ese.eur.nl, Yingqian Zhang We investigate the social welfare and behaviour of agents in repeated task allocation problems in transportation by looking at social welfare throughout the system, and the role behaviour plays in the system and agents’ willingness to participate. We make use of two task allocation mechanisms, one only considering optimality in terms of costs and the other considering optimality in terms of primarily fairness and secondarily costs. Fairness incentivizes agents to keep participating. Kazuaki Okubo, Saitama University, 255 Shimo-Okubo, Sakura-ku, Saitama, Japan, okubo@dp.civil.saitama-u.ac.jp

5 - Intermodal Transportation Auctions for B2b E-commerce Logistics with Transaction Costs Su Xiu Xu, The University of Hong Kong, LG108, Composite

Building, Hong Kong, 999077, Hong Kong - PRC, xusuxiu@gmail.com, Meng Cheng, George Q. Huang

We propose efficient intermodal transportation auctions for the B2B e-commerce logistics problem (ELP). This paper is the first to consider transaction costs into auctions. The shipper (a B2B e-commerce platform) bears transaction costs while goods sellers or buyers pay 3PLs’ intermodal services. Total logistics chain cost is minimized. Incorporating transaction costs leads to considerable cost saving for the shipper and logistics chain, as well as higher profitability for the group of 3PLs. WC79 79-Room 302, CC Software Demonstrations Invited Session Introduction to Risk and Decision Analysis using Palisade @RISK and The Decision Tools Suite, Jose Raul Castro, author This event is designed to provide an entry-level introduction into probabilistic analysis and will show how Monte Carlo simulation, decision trees, and opti- mization can be applied to your everyday business analyses. If you build models in Excel then Palisade solutions can almost certainly help you to make more informed decisions, right from your desktop. The webinar will explore some of the ways in which organizations are applying Palisade tools. From oil and gas, insurance and finance to healthcare, defense and construction, the DecisionTools Suite improves decision making at many of the world’s most successful compa- nies. WD01 01-Room 301, Marriott Operations Research in Military Medicine and Healthcare Sponsor: Military Applications Sponsored Session Chair: Nathaniel Bastian, Pennsylvania State Univeristy, 362 Leonhard Building, University Park, PA, 16823, United States of America, nathaniel.bastian@fulbrightmail.org 1 - Medical Evacuation from The Battlefield under Uncertainty Miguel Lejeune, Associate Professor, The George Washington University, 2201 G Street, NW, Funger Hall, Suite 415, Washington, DC, 20052, United States of America, mlejeune@gwu.edu, Francois Margot We propose stochastic optimization models that maximize the number of CAT A high-priority casualties transported to a medical center within one hour. Uncertainty stems from the difficulty to reach the casualty locations and the load of the air ambulances. We derive MINLP reformulations and propose algorithmic methods. 2 - Evaluating The Impact of Hospital Efficiency on Wellness in The Military Health System Eric Swenson, Pennsylvania State University, University Park, PA, United States of Americaer, s187@psu.edu, Nathaniel Bastian, Hyojung Kang, Lawrence Fulton, Paul Griffin Like all healthcare delivery systems, the U.S. military health system strives to achieve top preventative care and population health outcomes for its members while operating at an efficient performance level. This work uses DEA, SFA, and panel regression to investigate the relationship between hospital efficiency and wellness over time within the military health system. Comparisons are made using 128 military hospitals and clinics in the Army, Navy and Air Force from 2011 - 2013. Wednesday, 2:45pm - 4:15pm

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