Informs 2015

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INFORMS Philadelphia – 2015
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2 - Inventory Allocation in Omni-channel Retailing
Alexander Huebner, Associate Professor, Catholic University
Eichstaett-Ingolstadt, Auf der Schanz 49, Ingolstadt, 85049,
Germany, Heinrich Kuhn,
Andreas Holzapfel
Omni-channel retailers need to allocate inventories to their stores and the
warehouse for online fulfillment. The objective is to reduce for all channels
operational replenishment costs, stock-out costs and margin losses for overaged
inventory. We develop a decision model for inventory allocation and setting the
end-season discounts. The problem is solved with stochastic dynamic
programming. We show insights from a case study with a German fashion retailer,
where the model is applied.
3 - Vendor Influence on Inventory Adjustments
Daniel Corsten, IE Business School, Calle Maria de Molina 12
Bajo, Madrid, 28006, Spain, ,
Shivom Aggarwal
Vendor-side factors have been overlooked in the literature on shrinkage due to
intractability. Using multi-store longitudinal data from a US retailer we investigate
antecedents of shrinkage and how they affect store performance. Our holistic
framework will contribute to extant literature on retail operations.
4 - Efficient Algorithm for Assortment Planning with Limited
Shelf Space
Chun-miin Chen, Assistant Professor, Bucknell University,
313 Taylor Hall, 701 Moore Ave., Lewisburg, PA, 17837,
United States of America, , Zhaolin Li
We study the impact of limited shelf space on assortment planning in a single-
period model. As the shelf-space constraint makes the optimization problem
NP-complete, we investigate a comprehensive measure which enables efficient
identification of the variants to be added into the assortment and efficient
allocation of the available shelf space.
5 - An Analytics Framework for the Retail Shelf Space Management
Anurag Agarwal, Professor, University of South Florida, 8350 N
Tamiami Tr, Sarasota, FL, 34243, United States of America,
Ramakrishna Govindu, James Curran
Due to advancements in information technology, retailers are collecting a lot of
data and trying to optimize their limited shelf space. In this presentation, we
propose an analytics framework that integrates predictive and prescriptive
analytics for optimizing the retail shelf space.
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53-Room 107B, CC
Behavioral Models in Operations Management
Sponsor: Behavioral Operations Management
Sponsored Session
Chair: Xuanming Su, The Wharton School, University of Pennsylvania,
Philadelphia, United States of America,
1 - The Impact of Decision Rights and Long Term Relationships on
Innovation Sharing
Ruth Beer, Kelley School of Business, Indiana University, 1275 E
10th St, Bloomington, IN, 47405, United States of America,
, Stephen Leider
We study a supplier’s incentives to share an innovation with a buyer when
sharing the innovation increases efficiency but makes the supplier vulnerable to
the buyer sharing it with other suppliers. We show, both theoretically and
experimentally, that the supplier’s optimal decision depends on the length of the
relationship and in particular, on how the buyer allocates decision rights among
its employees.
2 - Linking Customer Behavior and Delay Announcements using a
Probability Model
Qiuping Yu, Assistant Professor, Indiana University, 1309 E. 10th
Street, Bloomington, IN, 47405, United States of America,
Eric Webb, Kurt Bretthauer
Service systems often offer announcements to customers about their anticipated
delay. We empirically examine how announcements affect queue abandonment
behavior using a duration model accounting for potential behavioral factors. Our
results show announcements induce the reference effect and customers exhibit
loss aversion. We also find evidence indicative of the sunk cost fallacy. We then
provide insights for staffing and delay announcement policy accounting for
observed behavioral factors.
3 - Trust, Social Networks, and Information Sharing
Among Executives
Karen Zheng, MIT, 77 Massachusetts Avenue, Cambridge, MA,
02139, United States of America, Emily Choi,
Ozalp Ozer
We experimentally study how trust and social networks influence forecast
information sharing behavior among executives with an average 17 years of
professional experience. We demonstrate an intricate interaction among trust
preconditioned by prior experiences, trust measured from social network, and
trust in supply chain information exchange. We show when trust from social
network significantly impacts trust in the supply chain and the resulting
information sharing efficiency.
4 - Behavioral Impact of Irrelevant Market Information on
Buying Decisions
Kay-Yut Chen, Professor, University of Texas Arlington,
701 West Street, Arlington, TX, United States of America,
, Diana Wu
We study how market information such as past sales, current stock levels and
stock-out probability influences purchase behavior. Experiments are conducted in
which buyers, who are exposed to different information, evaluate trade-offs
between the likelihood of out-of-stock and future price discounts. We found that
individuals can be swayed by information that is non-informative and irrelevant.
We develop a behavioral model that captures such behavioral reactions to explain
the lab findings.
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54-Room 108A, CC
Resource Allocation
Contributed Session
Chair: Marc Jansen, Phd Candidate, Judge Business School,
University of Cambridge, Trumpington Street, Cambridge,
United Kingdom,
1 - Optimal Allocation of Conference Rooms to Meeting Requests
Pawan Chowdhary, Software Research, IBM Research,
650 Harry Road, San Jose, CA, 95120, United States of America,
Robert Moore, Susanne Glissmann,
Sunhwan Lee, Ray Strong, Anca Chandra, Jeanette Blomberg
We present an analytics driven solution that dynamically allocates the conference
rooms based on time and other constraints. The approach initially assigns a
conference room using greedy heuristic and later reassigns or reaffirms the room
as responses from attendees arrive. We will show the results of both traditional
and optimal approach along with algorithm. We will also discuss how we can
leverage mobile to further enhance the solution and analytics to further improve
the outcomes.
2 - Optimizing Campsites Accommodation and Prices
Dasong Cao, Principal Scientist, Wyndham Exchange and Rental,
14 Sylvan Way, Parisippany, NJ, 07054, United States of America,
European vacation rental company offers package camping holidays, the
accommodation includes mobile homes, lodges and tents. Each year, they put
together a contracting plan, to decide which sites to choose to place
accommodation units on and how many units of each type to offer on each site,
and then a process to set the prices. We first built a mathematical model to pick
optimal site location and unit mix, and then built an Yield Management System
to set the prices dynamically.
3 - Managing Escalation: Support System Failure and Response
Capacity Allocation
Marc Jansen, PhD Candidate, Judge Business School, University
of Cambridge, Trumpington Street, Cambridge, United Kingdom,
, Nektarios Oraiopoulos, Daniel Ralph
Recent high profile IT system disruptions highlight the dependency of large client
pools on continuous availability of equipment provided and maintained by a
single vendor. At the onset of disruption, the scale of the disruption is typically
unknown. This paper examines how contracting decisions between an IT vendor
and multiple clients can enable efficient allocation of response capacity under
imperfect information on the true nature of the disruption.
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