Informs 2015

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INFORMS Philadelphia – 2015
394
WA63
63-Room 112B, CC
Operations Management III
Contributed Session
Chair: Sang Jo Kim, MIT-Zaragoza International Logistics Program,
Calle Bari 55, Edificio Nayade 5, Zaragoza, 50197, Spain,
1 - A New Approach to the Multi-Product Newsvendor Problem with
Customer Choice
Amr Farahat, Washington University in St. Louis, One Brookings
Drive, St. Louis, MO, 63104, United States of America,
, Joonkyum Lee
We present a methodology that yields upper bounds and feasible solutions to the
multiproduct newsvendor problem with customer choice. The methodology is
based on an approximate Jordan decomposition of the state transition matrix.
Specializations include a decomposition by customer into a sequence of
assortment optimization problems and a decomposition by product into a
collection of independent newsvendor problems.
2 - Stackelberg-game Analysis of Retailers’ Joint Procurement
Tianyuan Wang, Lingnan (University) College of Sun Yat-Sen
University, NO.135, Xingang West Road, Guangzhou, China,
, Ke Fu
We consider two retailers who face a Stackelberg game in joint procurement.
They have to determine the optimal inventory and pricing strategies in the
presence of both cooperation and competition. We show that both retailers prefer
joint purchasing if they have similar market penetrations. We demonstrate how
different problem parameters affect the game outcomes.
3 - Consumer Showrooming and the Length of Product Line
Yilong Luo, PhD Candidate, Illinois Institute of Technology,
6716 Idaho Ave., Hammond, IN, 46323, United States of
America, Jiong Sun
It is known that consumers’ showrooming behavior, i.e., inspecting products at
brick-and-mortar stores and then making a purchase at a competing online store,
can result in the brick-and-mortar store losing potential customers. We show that
such showrooming behavior can soften competition and hence can benefit both
retailers. We also show that this showrooming behavior may or may not induce
the brick-and-mortar retailer to reduce the length of the product line it carries.
4 - The Optimal Dynamic Policy for Periodic Stocking and Bundling
Sang Jo Kim, MIT-Zaragoza International Logistics Program,
Calle Bari 55, Edificio Nayade 5, Zaragoza, 50197, Spain,
Youyi Feng, Jianjun Xu
We consider a firm that offers two individual products and a bundle of them.
They periodically order the two products as well as bundle them aiming to
maximize the total discounted profit over a finite planning horizon. We assume
that the customer demand is random, unmet demand is backlogged and unsold
items are carried over to the next period. Optimal joint decisions on ordering and
bundling follow a well-structured policy that also draws significant managerial
insights.
WA64
64-Room 113A, CC
Risk-Based Decision Making in
Interdependent Systems
Sponsor: Decision Analysis
Sponsored Session
Chair: Hiba Baroud, Vanderbilt University, 400 24th Avenue South,
Nashville, TN, 37205, United States of America,
1 - Multi-criteria Inoperability Analysis of Commodity-specific Dock
Disruptions of Inland Waterway Port
Mackenzie Whitman, Graduate Student, University of Oklahoma,
1018 Timber Ridge Road, Harrah, OK, 73045, United States of
America, , Hiba Baroud, Kash Barker
Decision making for managing risk to infrastructure systems requires accounting
for impacts of disruptions that render systems inoperable. This paper integrates a
dynamic risk-based interdependency model with multi-criteria decision analysis
to evaluate dock-specific resource allocation alternatives to provide tangible
assessments of port preparedness planning. We analyze a set of discrete
allocations for the inland waterway Port of Catoosa in Oklahoma to assess total
expected loss per industry.
2 - How Much Should We Spend on Preparing for Disruptions?
Cameron MacKenzie, Assistant Professor, Iowa State University,
3004 Black Engineering, Ames, IA, 50011,
United States of America,
Every time a disruption causes major economic damages and/or leads to several
fatalities, the public questions why more wasn’t done to prepare for the
disruption. Prevention and preparedness require allocating resources (usually
money) that could be used for other purposes. I will present a model to help a
decision maker determine how much should be allocated before a disruption for
both a risk neutral and risk averse case. The model is applied to the Deepwater
Horizon oil spill.
3 - Infrastucture Resilience Framework for Decision Making
Comparison and Real Time Monitoring
Dante Gama Dessavre, Ph. D. Candidate, Stevens Institute of
Technology, Castle Point on Hudson, Hoboken, NJ, 07030,
United States of America, ,
Jose Emmanuel Ramirez-marquez
Understanding impacts of disruptions to systems is a critical component to enable
infrastructure modifications that improve their resilience. We present a
framework and optimization formulations that enable direct comparison of the
resilient behavior of a system due to different design choices; We also show how
it can be adapted to monitor the resilient behavior of a system in real time in
order to enhance the tools available to decision makers for disruption
management.
4 - How Performance Measure Selection Impacts Risk
Characterization in Interdependent Infrastructure
Allison Reilly, Johns Hopkins University, 3400 N Charles Street,
Baltimore, MD, 21218, United States of America, ,
Andrew Samuel, Seth Guikema
A perturbation in one infrastructure system stemming from a failure, an
investment, or some other change, is known to impact multiple performance
measures in dependent systems. However, most interdependent infrastructure
models evaluate influences on performance using only one measure. We evaluate
the implications of using one performance metric on decision-making and
system-wide risk and discuss how multiple performance measures could be used
to build a more holistic view.
5 - Bayesian Method for Thermo-electric Power Generation Drought
Risk Assessment
Royce Francis, George Washington University, 800 22nd St. NW
B1850, Washington, DC, 21212, United States of America,
Behailu Bekera
This paper presents a Bayesian framework for thermoelectric drought risk
assessment, focusing on current and future risk of drought driven by climate and
socio-economic changes. Uncertainties vary across regions based on the climate
condition, technology choices, regulations, demographic changes. These factors
are taken into consideration in updating uncertainty in parameters of a cost
model currently being developed by the authors.
WA65
65-Room 113B, CC
Decision Analysis Applications in Operations
Management
Sponsor: Decision Analysis
Sponsored Session
Chair: Barry Cobb, Missouri State University, 901 S. National Ave.,
Springfield, MO, 65897, United States of America,
1 - Import Security: Assessing the Risks of Imported Food
Jonathan Welburn, PhD Student, University of Wisconsin -
Madison, 1513 University Avenue, 3237 Mechanical Engineering,
Madison, WI, 53706, United States of America,
Vicki Bier, Steven Hoerning
We quantitatively address risks associated with imported foods using data on the
rate of FDA import violations, an indicator of risk. Using regression to analyze
these risks, we explore how risk varies by product and violation type.
Additionally, we explore improvements from finer categorization of product
types. While this might make results might even more useful, inconsistencies
between current databases make this difficult to achieve.
WA63