2015 Informs Annual Meeting

WE40

INFORMS Philadelphia – 2015

WE39 39-Room 100, CC Supply Disruption, Price Competition, and Quality Cluster: Operations/Marketing Interface Invited Session Chair: Chao Liang, Assistant Professor, Cheung Kong Graduate School of Business, Main Campus, Oriental Plaza, E2, 1 East Chang An Ave, Beijing, China, cliang@ckgsb.edu.cn 1 - Impact of Variety Seeking Behavior on Service Competition under Price Commitment Ying Wei, Associate Professor, Jinan University, Rm 722, Huiquan Building, Huangpu Avenue West 601#, Tianhe Dist., Guangzhou, 510632, China, yingwei@jnu.edu.cn, Liyang Xiong, Yulan Wang Variety seeking is modeled as a decrease in the willingness to pay for the product purchased on the previous purchase occasion. With a two-stage Hotelling-type model, we show that under symmetric competition, the presence of variety seeking induces centralization effect, meaning firms tend to make the same price and service levels; while under asymmetric competiton, the presence of variety seeking induces polarization effect meaning firms’ price and service decisions tend to be different. 2 - Uniform Pricing in Service Systems as an Efficient Way of Improving Quality We look at a firm with heterogeneous servers who provide quality-differentiated services, where quality can be improved based on servers’ experience. The commonly used pricing scheme that posts a price on each server suffers from a pitfall that the low quality servers usually improve slowly, impeding the future revenue increase. To resolve this issue, we propose another pricing scheme, which is essentially probabilistic selling, and analytically establish its superiority in long- run revenue. 3 - Does Traceability Help Product Quality? Chao Liang, Assistant Professor, Cheung Kong Graduate School of Business, Main Campus, Oriental Plaza, E2, 1 East Chang An Ave, Beijing, China, cliang@ckgsb.edu.cn In a supply chain with one manufacturer and one supplier, we study how traceability impacts the manufacturer and the supplier’s incentive to improve product quality. Interestingly, we find that traceability may reduce the final product’s quality. WE40 40- Room 101, CC Operations Management/Marketing Interface IV Contributed Session Chair: Sung Wook Yun, Yonsei University, Sinchon-dong, Seodaemun-gu, Seoul, Korea, Republic of, giantguard@naver.com 1 - Product Differentiation under Uncertain Market Conditions Xingxing Chen, Washington University in St. Louis, Campus Box 1133, St. Louis, MO, 63130, United States of America, xingxing.chen@wustl.edu We study a competition model between two firms facing uncertain market conditions where they engage in a product design competition with these uncertainties and then engage in a price competition after uncertainties are resolved. We try to characterize price and product design equilibrium and see how uncertainties in the market affect the equilibrium outcome. 2 - The Antecedents and Consequences of Automotive Recall Decision Making Chelsey Hill-Esler, Drexel University, 730 Gerri LeBow Hall, 3220 Market Street, Philadelphia, PA, 19104, United States of America, chh35@drexel.edu, Chaojiang Wu In the automotive industry, when a safety defect or noncompliance issue is discovered, automakers must make many important decisions. This research considers two decisions: action and initiation. Using primary and secondary recall data between 2004-2014, the authors utilize a two-stage modeling approach investigating the factors influencing recalls and the effect of recall decisions on market share. Xin Geng, Sauder School of Business, University of British Columbia, Vancouver, BC, CanadaXin.Geng@sauder.ubc.ca

4 - Modeling Individual Consumer Food Contamination Progession Jessye Bemley, North Carolina A&T State Uinversity, 1601 East Market St., McNair Hall 419, Greensboro, NC, 27409, United States of America, jlbemley@gmail.com, Lauren Davis Food-borne illness affects nearly 48 million individuals a year resulting in hospitalizations and deaths. United States public health departments reported that 1,527 food outbreaks occurred between 2009 and 2010 of which 7.8% resulted in deaths. The purpose of this research is to develop models that will help to quantify consumer morbidity, consider the impact of various characteristics on the consumer, spread of contamination and consider interventions. WE38 38-Room 415, Marriott Optimization Combinatorial IV Contributed Session Chair: Mohsen Momeni Tabar, K.N.Toosi University of Technology, Tehran, Iran, mohsenmt40@gmail.com 1 - Semidefinite and Copositive Relaxation of Polynomial Optimization by using Symmetric Tensors Xiaolong Kuang, Lehigh University, 14 Duh Drive, Apt. 324, Bethlehem, PA, 18015, United States of America, kuangxiaolong0731@gmail.com We study relaxation of general polynomial optimization problem over the cone of positive semidefinite and completely positive tensors, which are natural extensions of the cones of positive semidefinite and completely positive matrices. Then we characterize the relationship between Lagrangian bounds, semidefinite bounds and copositive bounds of polynomial optimization. 2 - A Three-Operator Splitting Scheme and its Optimization Applications Damek Davis, Graduate Student, University of California, Los Angeles, Department of Mathematics, Los Angeles, CA, 90095-1555, United States of America, damek@math.ucla.edu, Wotao Yin In this talk, we introduce a new splitting scheme that extends the Douglas- Rachford and forward-backward splitting schemes to monotone inclusions with three operators, one of which is cocoercive. We discuss why this algorithm works, derive several special cases, including a simple three-block ADMM algorithm, and introduce an acceleration that achieves the optimal rate of convergence for strongly monotone inclusions. Finally, we discuss several applications and future research directions. 3 - Moment Problem and its Applications to Risk Assessment Ruilin Tian, Associate Professor Of Finance, North Dakota State University, 244 Richard H. Barry Hall, NDSU Dept 2410, Fargo, ND, 58108-6050, United States of America, ruilin.tian@gmail.com, Samuel Cox, Luis Zuluaga We discuss how to solve univariate moment problems with different function forms for risk assessment through three methods; namely, the semidefinite programming method, the moment-matching method, and a linear approximation method. We show that for practical purposes, these methods provide numerically equivalent results. Also, we propose a simpler formulation for the unimodal bounds on E[I_(x<=K]] compared to existing formulations of the moment problem in the literature. 4 - Calculating the Number of Optimal Server in Queue M/M/s/K Mohsen Momeni Tabar, K.N.Toosi University of Technology, Tehran, Iran, mohsenmt40@gmail.com, Zhila Dehdari Ebrahimi, Mahyar Ejlali Nowadays, economical systems play an important role in reducing costs. In this paper, mathematical modeling and calculation of optimal server queue M / M / s / K have been investigated and numerical analysis method was used. The goal of this paper, base on two criteria to minimize costs and maximize the level of service is built. Finally, analyzed this paper done by maple 12 software.

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