Informs 2015

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INFORMS Philadelphia – 2015
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4 - Online Reuse Marketplaces: An Empirical Analysis
Suvrat Dhanorkar, Assistant Professor, Penn State University,
University Park, State College, PA, United States of America,
Online Reuse Marketplaces promote matching between producers and consumers
of used products. We examine questions related to the evolution and design of
one such marketplace.
MB50
50-Room 106A, CC
Supply Chain Risk Management Strategies
Sponsor: Manufacturing & Service Operations Management
Sponsored Session
Chair: Yiming Wang, Arizona State University, Department of Supply
Chain Management, Tempe, AZ, 85287, United States of America,
1 - Payment Timing in Multiechelon Supply Chains: Cost
Assessment, Incentives, and Coordination
Greg Decroix, Professor, University of Wisconsin-Madison,
975 University Avenue, Madison, WI, 53706, United States of
America, , Jeannette Song, Jordan Tong
Developments in information technology have led to increased variety in
payment arrangements between supply chain members. In this paper we
introduce a new system for capturing the financing costs resulting from a general
class of such payment schemes. Under wholesale price contracts, we use this
framework to demonstrate the impact of payment timing on firm incentives, and
show that partially delayed payments can achieve coordination in settings where
standard or fully delayed payments cannot.
2 - Global Sourcing under Yield Uncertainty
Shahryar Gheibi, Doctoral Candidate, Syracuse University, 721
University Ave., Syracuse, NY, 13244, United States of America,
, Burak Kazaz, Scott Webster
We study the sourcing policies of a firm operating in an agricultural environment
where yield uncertainty influences the firm’s crop supply. Our analysis examines
the direct trade sourcing policy which is perceived as an alternative to the fair
trade policy. It is often believed that hedging is not advantageous in risk-neutral
settings; our work, however, shows that there are conditions when the firm
benefits from utilizing futures contracts simultaneously with direct trade sourcing
policies.
3 - Wine Analytics: Fine Wine Pricing and Selection under Weather
and Market Uncertainty
Mert Hakan Hekimoglu, Doctoral Candidate, Syracuse University,
721 University Avenue, Syracuse, NY, 13244, United States of
America, Burak Kazaz, Scott Webster
We investigate a distributor’s portfolio selection problem of wine futures and
bottled wine. Using data, we first empirically show how the evolution
of futures prices for young wines can be predicted by changes in weather and
market conditions. We then examine the distributor’s investment decisions in
wine futures, bottled wine, and cash position analytically using a Value-at-Risk
measure.
4 - Production Decisions for New Products under Yield and
Demand Learning
Candace Yano, University of California, Berkeley, IEOR Dept.and
Haas School of Business, Berkeley, CA, 94720,
United States of America, ,
Kai-chuan Yang
Manufacturers launching new products can schedule the first production run well
before product introduction, allowing them to learn about the uncertain yield.
But early production would occur before an accurate demand forecast is available,
thus risking overproduction. We explore how a firm facing capacity constraints
should optimize these decisions when new products share capacity with existing
products whose demands are uncertain but whose yields are more predictable.
MB51
51-Room 106B, CC
Behavior-driven Operations Management
Sponsor: Manufacturing & Service Operations Management
Sponsored Session
Chair: Fuqiang Zhang, Olin Business School, Washington University, St.
Louis, MO, United States of America,
1 - Are Strategic Customers Bad for a Supply Chain?
Ali Parlakturk, Associate Professor, UNC Kenan-Flagler Business
School, 300 Kenan Center Drive, MC #4708, Chapel Hill, NC,
27599, United States of America, Ali_Parlakturk@kenan-
Yen-Ting Lin, Jayashankar Swaminathan
We contrast the results of forward-looking strategic customers with the myopic
customers benchmark in a supply chain of a manufacturer and a retailer. The
combination of Strategic customer behavior and decentralization does not
necessarily result in the worst supply chain performance. In fact, when customers
are sufficiently patient, a decentralized supply chain that faces strategic customers
outperforms the supply chain with only one of those factors at play.
2 - Managing Social Responsibility in Multi-tier Supply Chains
Robert Swinney, Associate Professor, Duke University,
100 Fuqua Dr, Durham, NC, 27708, United States of America,
, Lu Huang, Jeannette Song
We examine a three level supply chain in which a Tier 2 supplier sells to a Tier 1
supplier which sells to a downstream (Tier 0) firm, and consider whether Tier 0
should manage social responsibility in Tier 2 directly or delegate to Tier 1. We
focus on the impact of external stakeholder behavior (consumers, NGOs, and
governments) on the Tier 0 firm’s optimal strategy, and show that increasing
pressure from these stakeholders may backfire and lead to a less responsible
supply chain.
3 - A Model of Rational Retrials in Queues
Shiliang Cui, Georgetown University, McDonough School of
Business, Washington, DC, 20057, United States of America,
, Senthil Veeraraghavan,
Xuanming Su
Consumers suffer dis-utility in waiting for a service. When they can self-organize
the timing of their service visits, they may avoid long queues and choose to retry
later. We study an observable queue in which consumers make rational join, balk
and costly “retry” decisions upon their arrival. Retrial attempts could be costly
due to factors such as transportation costs, retrial hassle and visit fees. We
characterize the equilibrium under such retrial behavior, and study its welfare
effects.
4 - Ceo Overconfidence, Inventory Management, and
Firm Performance
Fuqiang Zhang, Olin Business School, Washington University, St.
Louis, MO, United States of America, ,
Tianjun Feng, Qing Zhang
Using the data of U.S. manufacturing firms during 1999-2011, we investigate the
relationship between CEO overconfidence and firm inventory management. We
find that firms with overconfident CEOs have lower inventory levels. In addition,
we provide empirical evidence of the mediation effect of inventory level on firm
financial performance.
MB52
52-Room 107A, CC
Best Paper Award
Sponsor: Service Science
Sponsored Session
Chair: Tor W. Andreassen, Professor, NHH Norwegian School of
Economics, Helleveien 30, Bergen, Norway,
1 - Design of Informatics-based Services in Manufacturing Industries:
Case Studies and Discussion
Chie-Hyeon Lim, Post-doc, POSTECH, Engineering Building
#4-316, Pohang, 790-784, Korea, Republic of,
Jun-yeon Heo, Min-Jun Kim,
Kwang-jae Kim
A key component of servitization in manufacturing industries is informatics,
which transforms product and customer data into information for customers.
Informatics-based service is defined as a type of service wherein informatics is
crucial to customer value creation. In this talk, we introduce two case studies on
the design of informatics-based services in manufacturing industries. Various
aspects of informatics-based service design in manufacturing are also discussed.
MB52