2015 Informs Annual Meeting

WD51

INFORMS Philadelphia – 2015

WD49 49-Room 105B, CC Facility Location I Contributed Session Chair: Kenneth Carling, Professor, Dalarna University, Sweden, Högskolan Dalarna, Falun, 79188, Sweden, kca@du.se 1 - Locating and Sizing Storage Units in a Drainage System using a Simulated Annealing Approach Maria Cunha, Professor, University of Coimbra, DEC Polo II da Universidade, Coimbra, 3030-165, Portugal, mccunha@dec.uc.pt, Nuno Simıes, Joao Zeferino Urban stormwater drainage systems are very important assets to sustainable development. Attention must be paid to the effects of the rapid process of urbanization and climate change with extreme weather and heavy rains occurring more frequently. A pioneering tool will be presented, comprising interlinked modules (including an optimization model for locating and sizing units to store excess flows taking into account climate change) to redesign sustainable urban stormwater drainage systems. 2 - Developing a Transportation Network for UAVs Delivery Amirali Ghahari, University of Arkansas, 891 W. Melmar Dr., Apt #83, Fayetteville, AR, 72703, United States of America, aghahari@uark.edu, Edward Pohl Recently, the use of Unmanned Ariel Vehicle (UAV) for package delivery has become an interesting topic for giant corporations. In our research, we develop a strategic model that constructs a transportation and support network which enables the UAVs to fly long distances and make deliveries to a variety of demand points. Since the developed models cannot be solved optimally for large representative problems using exact methods, a heuristic algorithm is developed to solve real world examples. 3 - Cold Supply Chain Design with Environmental Considerations: A Simulation-optimization Approach Ahmed Saif, University of Waterloo, 200 University Avenue, Waterloo, Canada, asaif@uwaterloo.ca, Samir Elhedhli Cold supply chains have high levels of greenhouse gas emissions due to the high energy consumption and refrigerant gas leakages. We model the cold supply chain design problem as a mixed-integer concave minimization problem with dual objectives of minimizing the total cost and the global warming impact. A novel hybrid simulation-optimization approach is propose to solve the problem. 4 - On Administrative Borders and Accessibility to Public Services Do the Europeans suffer from a poor accessibility to public services due to internal borders? We address this question by studying the effect of administrative borders within Sweden on the population’s spatial accessibility to hospital service. We have elaborated several scenarios ranging from strongly confining regional borders to no confinements of borders as well as long-term population redistribution. Our findings imply that the borders are only marginally worsening the accessibility. WD50 50-Room 106A, CC Urban Spatial and Environmental Issues Sponsor: Manufacturing & Service Operations Management Sponsored Session Chair: Elena Belavina, University of Chicago Booth School of Business, 5807 S Woodlawn Ave, Chicago, IL, United States of America, elena.belavina@chicagobooth.edu 1 - Shipment Policies for Perishable Products in Two-tier Supply Chains Arzum Akkas, Boston University, 595 Commonwealth Avenue, Boston, MA, United States of America, arzumakkas@gmail.com, Vishal Gaur, David Simchi-levi, Roy Welsch Product expiration is an important problem in the consumer packaged goods industry with substantial impact on the environment and profits of firms. We found that shelf life erosion is one of the drivers of expiration. In this study, we establish shipment policies for manufacturers to address the shelf life erosion problem. Kenneth Carling, Professor, Dalarna University, Sweden, Hügskolan Dalarna, Falun, 79188, Sweden, kca@du.se, Pascal Rebreyend, Xiangli Meng, Johan Håkansson

2 - Online Fresh Grocery Retail: A La Carte Or Buffet? Elena Belavina, University of Chicago Booth School of Business, 5807 S Woodlawn Ave, Chicago, IL, United States of America, elena.belavina@chicagobooth.edu Grocery delivery is a market that many try to conquer. Appropriate pricing is key for success. There is little consensus among different players (at times even within one firm operating in different locations) on what is the best pricing scheme. For example, Amazon Fresh in Seattle is using per order pricing while in San Francisco - subscription fee. We provide recommendation for the preferred pricing scheme based on various characteristics (delivery logistics, demand variability etc.). 3 - Customer Behavior in Bike-share Systems Karan Girotra, Associate Professor, INSEAD, Boulevard de Constance, Fontainebleau, 77300, France, Karan.Girotra@insead.edu Using a large high-frequency dataset, we identify the impact of the accessibility of bike-share stations and the associated service-levels on the usage of these systems. We illustrate the use of our estimates to support operational decisions such as station network reorganization and system investments. 4 - Service Region Design for Urban Electric Vehicle Sharing Systems Ho-Yin Mak, Associate Professor, Saod Business School, University of Oxford, Park End Street, Oxford, United Kingdom, Ho-Yin.Mak@sbs.ox.ac.uk, Ying Rong, Long He, Zuo-Jun Max Shen 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. WD51 51-Room 106B, CC Strategic Behavior and Decision Making within Supply Chains Sponsor: Manufacturing & Service Operations Management Sponsored Session Chair: Pelin Pekgun, Assistant Professor, University of South Carolina, 1014 Greene Street, Columbia, SC, 29208, United States of America, pelin.pekgun@moore.sc.edu 1 - The Effects of Product Recalls on Promotions and Sales Yan Dong, Moore School of Business, University of South Carolina, 1014 Greene St, Columbia, SC, 29201, United States of America, Yan.Dong@moore.sc.edu, Chen Zhou, Rafael Becerril, Tony Haitao Cui This study investigates firm decisions in response to a major product recall, which has a direct effect to the recalled brand and an indirect effect to the market and the competitors. In the wake of the recall, firms may adopt different strategies to take advantage of the recall, by promoting their own products more aggressively, for example, to increase sales. Analyzing a dataset of recalls in the automobile industry, this study shows how the competitors can proactively react to a major recall. 2 - Mitigating Supplier Risks via Diversification Versus Improvement: An Experimental Evaluation Basak Kalkanci, Georgia Institute of Technology, 800 W Peachtree St, NW, Atlanta, GA, United States of America, Basak.Kalkanci@scheller.gatech.edu Using economic experiments, we evaluate the performance of supplier diversification versus improvement to mitigate supply chain risks of a buyer facing suppliers with different costs and risk profiles. We show that the buyers diversify their orders more than theory and the orders are artificially inflated to benefit from quantity hedging. We also demonstrate that sourcing commitment hurts a buyer by reducing the subsequent supplier improvement effort, contrary to theory.

469