Informs 2015

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INFORMS Philadelphia – 2015
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4 - Selling a Dream: Pricing under Savoring and Anticipation
Javad Nasiry, Assistant Professor, Hong Kong University of
Science and Technology, ISOM, LSK Building, HKUST, Hong
Kong, Hong Kong - PRC, , Ioana Popescu
We study a market where customers derive emotional utility from anticipating
pleasurable purchase outcomes, but experience disappointment if outcomes fall
short of what they anticipated. In this context, we show that firms can profit by
adopting randomized pricing policies.
TC46
46-Room 104A, CC
Issues Related to Supply Chain Management
Sponsor: Manufacturing & Service Oper Mgmt/Service Operations
Sponsored Session
Chair: Achal Bassamboo, Professor, Kellogg School of Management,
2001 Sheridan Road, Evanston, IL, 60208, United States of America, a-
1 - Worker Poaching in a Supply Chain: Enemy from Within?
Evan Barlow, Northwestern University, Evanston, IL,
United States of America, ,
Gad Allon, Achal Bassamboo
Poaching workers has become a universal practice. We explore worker poaching
between firms linked in a supply chain. We show that the classical intuition from
labor economics is insufficient in explaining poaching between supply chain
partners. We also show how and under what conditions worker poaching can
actually improve supply chain performance. Finally, we show how the
equilibrium identity of the supply chain bottleneck depends on the interaction
between hiring, poaching, and productivity.
2 - Dynamic Clustering and Assortment Personalization:
The Value of Information Pooling
Sajad Modaresi, Duke University, 100 Fuqua Drive, Durham, NC,
United States of America, , Denis Saure,
Fernando Bernstein
A retailer faces heterogeneous customers with initially unknown preferences. The
retailer can personalize assortment offerings based on available profile
information; however, users with different profiles may have similar preferences,
suggesting that the retailer can benefit from pooling information among
customers with similar preferences. We propose a dynamic clustering approach
that adaptively adjusts customer segments and personalizes the assortment
offerings to maximize cumulative profit.
3 - Policing a Self-policing Firm: Incentives for Detection and
Disclosure of Compliance Violations
Sang Kim, Yale School of Management, New Haven, CT,
United States of America,
One of the challenges in enforcement of environmental regulations is designing
an effective incentive mechanism that elicits firms’ voluntary detection and
disclosure of compliance violations. with a right incentive, a firm self-polices its
internal operations to detect random violations before a regulator does, and
subsequently puts a remedial action in place. We study this incentive dynamic
using a game-theoretic framework.
4 - Reshoring Manufacturing: Supply Availability, Demand Updating,
and Inventory Pooling
Bin Hu, Assistant Professor, UNC Kenan-Flagler Business School,
CB#3490 McColl Bldg, University of North Carolina,
Chapel Hill, NC, 27519, United States of America,
, Li Chen
Reshoring shortens the distance from factory to market, however limited onshore
supply availability may force reshoring manufacturers to remain dependent on
offshore suppliers, leading to increased distance from supplier to factory. In this
case, we show that manufacturers’ preferences toward reshoring boil down to
trade-offs between operational flexibilities. We characterize when manufacturers
prefer reshoring, and further identify operational strategies that can swing such
preferences.
TC47
47-Room 104B, CC
Topics in Remanufacturing and Recycling
Sponsor: Manufacturing & Service Oper Mgmt/Sustainable
Operations
Sponsored Session
Chair: Gal Raz, Associate Professor, Ivey Business School, Western
University, 1255 Western Road, London, ON, Canada,
Co-Chair: James Abbey, Texas A&M University, 4217 TAMU 320P,
College Station, TX, 77843, United States of America,
1 - Recycling as a Strategic Supply Source
Gal Raz, Associate Professor, Ivey Business School, Western
University, 1255 Western Road, London, ON, Canada,
, Gilvan (Gil) Souza
In this paper we investigate how recycling can be used as a strategic source of
supply in the presence of competition and a powerful material supplier. We
examine the economic and environmental impact of a manufacturer’s decision to
recycle its products and the implications on the customers, supplier and society as
a whole.
2 - The Effect of Environmental Regulation on DFE Innovation:
Social Cost in Primary/ Secondary Markets
Cheryl Druehl, George Mason University, 4400 University Dr MS
5F4, Fairfax, VA, 22030, United States of America,
, Vered Blass, Gal Raz
We examine DfE innovations in the use stage and for refurbishing of a firm selling
new primary market products and refurbished products in a separate secondary
market. The firm determines innovations, prices, and fraction collected. Using
LCA data from cell phones, we compare EPR and Use stage regulations on profits
and environmental impact.
3 - New Versus Refurbished: Key Factors that Influence
Consumers’ Decisions
Erin Mckie, University of South Carolina, 1014 Greene Street,
Columbia, SC, 29208, United States of America,
Mark Ferguson, Michael Galbreth,
Sriram Venkataraman
Remanufacturing is increasingly providing new profit opportunities for firms, and
more product condition options – such as new, refurbished, and used – for
consumers to choose between. Using secondary data and choice model analysis
techniques, this study estimates the influence of various factors on consumers’
purchasing decisions.
4 - The Value of Competition in Remanufacturing
Narendra Singh, Georgia Institute of Technology, Atlanta, GA,
United States of America, ,
Karthik Ramachandran, Ravi Subramanian
We study an OEM’s product strategy when the OEM offers a new product that
depreciates over time and consumers are strategic. The OEM competes with a
third-party remanufacturer for acquisition and remanufacturing of the
depreciated products. We study how competition from the third-party
remanufacturer affects the OEM.
TC48
48-Room 105A, CC
Managing Finances and Risk in Supply Chains
Sponsor: Manufacturing & Service Oper Mgmt/iFORM
Sponsored Session
Chair: Danko Turcic, Associate Professor Of Operations, Olin Business
School, Washington University in St. Louis, St Louis, MO,
United States of America,
Co-Chair: Panos Kouvelis, Professor, Olin Business School, Washington
University in St. Louis, St Louis, MO, United States of America,
TC46