Informs 2015

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INFORMS Philadelphia – 2015
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50 - Behavioral Ordering Decision under Downward Substitution
Yan Li, Dr., China University of Mining and Technology, Ding 11,
Xueyuan Road, Beijing, China, , Bojiao Mu
Downward substitution is one common strategy for selling multi-class products.
The previous research assumes perfect rationality. This paper relaxes the
assumption and utilizes the MNL model to depict the ordering behaviors for
substitutable products. We compare the ordering quantity considering
substitution with that without substitution. The substitution effect shows non-
monotonicity regarding the extent of rationality and is superior to the one
predicted by rationality.
51 - Optimal Capital Structure and Credit Spread under
Partial Information
Bo Liu, UESTC, No.4, Section 2, North Jianshe Rd., Chengdu,
China,
The paper first incorporates partial information friction to extend the classic
optimal capital structure model. We derive closed-form results for the value of
risky debt,credit spread, default threshold, and for optimal capital
find that under partial information,dynamic learning significantly increases the
optimal coupon level and firm’s leverage, and improves the tax advantage to debt.
52 - Optimal Production and Inventory Policy in Solar Photovoltaic
Supply Chain
Xiangrong Liu, Bridgewater State University, 95 Grove Street,
Bridgewater, PA, United States of America,
, Chuanghui Xiong
The development and utilization of solar photovoltaic (PV) energy has progressed
at a very fast pace. With decreasing price of PV module and uncertain
government incentives, this research models the production and inventory
strategies in the setting of a PV supply chain with a PV manufacturer, an installer
and an end customer. Based on the manufacturer’s and installer’s optimal
decision, this study discusses how to improve supply chain performance through
parameters setting in contract design.
53 - Optimal Stopping Game with Investment Spillover Effect
Akira Maeda, Professor, The University of Tokyo, 3-8-1 Komaba,
Meguro, Tokyo, 153-8902, Japan, ,
Motoh Tsujimura, Ryuta Takashima
The purpose of this study is to analyze the game over optimal choice of firm’s
investment time, focusing on the case that there is positive externality in the
effect of investment. We consider a situation where firms can increase their
subsequent revenue stream by making an irreversible investment, and the
investment has a spillover effect to other firms. This setup describes gaming over
optimal stopping problems. We examine the property of the subgame perfect
Nash equilibrium.
54 - Recent Trends in Blood Banking Systems: A Supply
Chain Perspective
Amir Masoumi, Assistant Professor Of Management, Manhattan
College, 4513 Manhattan College Parkway, DLS 504, Riverdale,
NY, 10471, United States of America,
Blood service operations are a key component of the healthcare system all over
the world. In the US prior to 2008, there were several reported cases of blood
shortages; however, the scenario has significantly changed thereafter. The total
number of whole blood and red blood cells collected annually decreased from
17.3 to 15.7 million units during the 2008-2011 period. We investigate the recent
trends in supply and demand management of blood banking systems from a
logistics perspective.
55 - Optimal Sizing of a Price-maker Energy Storage Facility
Considering Uncertainty
Ehsan Nasrolahpour, University of Calgary, 2500 University Dr.
NW, Calgary, AB, Canada,
This paper proposes a strategic investment model for a price-maker energy storage
facility considering market uncertainties. The proposed model is a stochastic bi-
level optimization problem where planning and operation decisions of the energy
storage facility are made in the upper level, and market clearing is modeled in the
lower level under different operating conditions. The bi-level optimization
problem is recast as an Mathematical Program with Equilibrium Constraints
(MPEC).
56 - Army Materiel Systems Analysis Activity (AMSAA)
Joseph Olah, AMSAA, 392 Hopkins Road, APG, MD, United
States of America, , Tiffany Gutowski
AMSAA is the Army’s independent source of data, modeling & simulation, and
materiel lifecycle & logistics systems analysis to support the Army’s Equipping,
Sustaining and Warfighting decisions. AMSAA’s Core Competencies are
Independent Materiel Performance and Effectiveness Analysis, Independent
Logistics Analysis, Field Data Collection and Analysis, Program Management of
DoD’s JTCG-ME Program, Strategic/Corporate Level Decision Analysis, and
Certified System Level Performance Data.
57 - Reinforcement Learning Algorithm for Blood Glucose Control in
Diabetic Patients
Mahsa Oroojeni Mohammad Ja, Northeastern University,
334 Snell Engineering, Boston, MA, United States of America,
In this paper a reinforcement learning algorithm is proposed for regulating the
blood glucose level of Type I diabetic patients. In the proposed reinforcement
learning algorithm body weight and A1C level define the state of a diabetic
patient. For the agent, insulin dose levels constitute the actions. As a result of a
patient’s treatment, after each time step t, the patient receives a numerical reward
depending on the response of the patient’s health condition.
58 - Modeling the Stockist
Omkar Palsule Desai, Associate Professor, Indian Institute of
Management Indore, Prabandh Shikhar, Rau Pithampur Road,
Indore, MA, 453556, India, ,
Ananth Iyer
We focus on the problem of distribution to the millions of small shops that
constitute the retail sector in India, as well as many other developing countries.
We model the role of a stockist - a supply chain entity whose role is to facilitate
distribution. We use a principal agent model structure, with a complements or
substitutes relationship between manufacturer assistance and retailer impact, to
understand the optimal contract structure, i.e., level of assistance and associated
retail margin.
59 - Automatic Design of Methods for Combinatorial
Optimization Problems
Lucas Parada, General Manager, Universidad de Concepcion,
Avenida Inglesa 134 / 504, Concepcion, 4040409, Chile,
Designing an method to solve an optimization problem is a complex intellectual
task. However, to design an algorithm is also an optimization problem. To solve
this second level problem we combine and evolve elementary algorithmic
components through genetic programing. The produced algorithms show
promising features such as low solution errors and small computational times for
several classical optimization problems.
60 - Bayesian Adjusted Uplift Modeling for Direct Mail Campaign
Yidong Peng, Conclusive Analytics, 13620 Reese Boulevard E.
Suite 300, Huntersville, NC, 28078, United States of America,
The study compares the performance of traditional respond model, uplift model
and our proposed Bayesian adjusted uplift model on selecting customers for direct
mail campaign. The proposed model applies customers’ responses to historical
campaign to generate the posterior uplift estimates based on result of uplift
model. A case study is conducted to verify that the proposed model provides
higher sales lift by using the real monthly directly campaign data from a top auto-
parts retail company.
61 - How to Make Big Blue (IBM) Business Segments Fast
and Responsive
Alan Piciacchio, Senior Technical Staff Member / Lead Request
For Service Business Analyst In Rfs, IBM, 2455 South Road,
Poughkeepsie, NY, 12590, United States of America,
Jose Cano, Skip Jahn
This poster will describe how a big company like IBM can be nimble and fast and
responsive. Over the past 3 years - in the growth segment (hundreds of millions
of dollars yearly) of IBM’s Global Technology Services unit, an impactful set of
analytics and actions have been deployed to dramatically improve business
revenue by tens of millions of dollars, via a 65% improvement in cycle time.
62 - Continuum Approximation Modeling of Freight
Distribution Systems
Mahour Rahimi, University of Massachusetts, Amherst, 139
Marston Hall, 130 Natural Resources Rd., Amherst, MA, 01003,
United States of America, Eric Gonzales
This study presents a continuous approximation model for truck deliveries which
relate the operating parameters to the characteristics of the service and network,
service area, and demand rate. The objective of this study is to minimize the total
cost of distributing multicommodity freight from an origin to randomly
distributed points, with or without transshipments, and within a limited amount
of time. Two different distribution methods are considered: peddling, and
peddling with transshipment.
63 - Modeling Relation Between Natural Problems and Formal
Structures: A Health Systems Application
Edmond Ramly, University of Wisconsin-Madison, 20 Sherman
Terrace, Unit 6, Madison, WI, 53704, United States of America,
We formulate a class of cyber-social systems where formal (mathematical) and
natural (problem structuring) operations research are complementary and
insufficient separately. We adapt the Hertz-Rosen Modeling Relation from systems
biology as a unifying framework relating natural and formal systems with
encoding and decoding operations. We present a category-theoretic
axiomatization and a demonstration of complementarity in a health IT evaluation
case.
POSTER SESSION