Informs 2015

416 / 552

INFORMS Philadelphia – 2015
414
2 - Should Firms Invest in Joint Promotions?
Salma Karray, UOIT, 2000 Simcoe Street North, Oshawa, ON,
Canada, , Simon Pierre Sigue
We investigate whether firms should invest in joint promotions for their
complementary products with partners that are competitors in other product
categories. We develop a game-theoretic model and solve for Nash equilibrium
strategies. The main results show that spillover effects significantly affect the
viability of such promotions.
3 - The Lot Sizing Problem under Price Competition
Alejandro Lamas, Assistant Professor, NEOMA Business School,
1 Rue du Maréchal Juin, Mont Saint Aignan Cedex, 76825,
France, , Philippe Chevalier
We study simultaneous pricing and operations planning when two competitors
face price sensitive demands. We model the operations of each competitor as a Lot
Sizing Problem. We assume competitors choose prices from a discrete set, thus the
complexity of computing a Nash Equilibrium increases with the size of the
instance. By characterizing a Nash Equilibrium, we reduce the computational
time of the problem.
WB41
41-Room 102A, CC
Joint Session MSOM-Health/HAS: Incentives in
Healthcare Value Chain for Drugs and Consumables
Sponsor: Manufacturing & Service Oper
Mgmt/Healthcare Operations
Sponsored Session
Chair: Sepehr Nemati, Postdoctoral Fellow, Ivey School of Business,
University of Western Ontario, 1255 Western Road London, London,
Canada,
1 - Modeling the Ethics of Donating Dated Medical Supplies
Quan Zhou, University of Auckland, 12 Grafton Road, Auckland,
1010, New Zealand, , Tava Olsen
Many developed countries hold medical supplies in reserve for emergencies that
eventually become dated. For example, sterile packaging begins to lose its sterile
seal over time. Although donating such dated medical supplies to developing
nations could reduce expiration and benefit the recipients, it is not encouraged
due to ethical concerns. Using a series of stochastic models, we investigate how
donation would impact a recipient country’s social welfare, considering possible
corruption effects.
2 - Two-Echelon Pharmaceutical Reverse Supply Chain Coordination
with Customer Incentives
Du’a Weraikat, PhD Candidate, Concordia University, 1420 Rue
Towers Apt. 317, Montreal, Canada, ,
Masoumeh Kazemi Zanjani, Nadia Lehoux
We explore the role of providing incentives to customers to encourage the returns
of unexpired medications and to improve the performance of real pharmaceutical
reverse supply chains (RSC). Also, we investigate the effect of having a
coordination method between RSC entities on the recovery rate. Finally, a proper
technique is proposed to share the RSC savings. The results indicate that
introducing incentives enhances the recovery rate by 11.5% while improving the
profitability of the RSC.
3 - How to Fight Fake Medicine with SMS Verification Technology
Michael Beeler, PhD Candidate, Massachusetts Institute of
Technology, 77 Massachusetts Avenue, E40-149, Cambridge, MA,
02139, United States of America, ,
David Simchi-levi, Cynthia Barnhart, Louis Chen
The WHO estimates that up to 25% of medicine in poor countries could be
counterfeit. We show that using covert, single-use product codes verifiable by
SMS can reduce counterfeiting levels while improving manufacturer profit.
Moreover, we find for certain drug markets, manufacturers can obtain further
gains by offering small SMS-based rebates to consumers who verify products. Our
paper presents an analytical framework for selecting such rebate levels to fight
counterfeit drugs.
4 - Companion Diagnostics Co-Development with Patent Expiry and
Additional Effort on Quality
Sepehr Nemati, Postdoctoral Fellow, Ivey School of Business,
University of Western Ontario, 1255 Western Road London,
London, Canada, Mehmet Begen,
Gregory Zaric
Developing safe and reliable companion diagnostic tests for an existing drug
before the drug patent expires is shown to be a viable strategy for pharma
companies to thrive their business. We study the problem that pharma companies
face when they offer a contract to form partnerships with biotech companies for
developing these tests. We propose a contract that maximizes the pharma’s profit
while giving enough incentives to the biotech company to timely develop a high
quality test.
WB42
42-Room 102B, CC
Stochastic Models for Healthcare Applications
Sponsor: Manufacturing & Service Oper
Mgmt/Healthcare Operations
Sponsored Session
Chair: Pengyi Shi, Assistant Professor, Krannert School of Management,
Purdue University, 403 W State St, West Lafayette, IN, 47907,
United States of America,
1 - Approximating Emergency Department Census Levels via Simple
Queueing Models
Wanyi Chen, University of North Carolina at Chapel Hill, 131
Providence Glen Dr, Chapel Hill, NC, 27514, United States of
America, , Debbie Travers, Serhan Ziya,
Nilay Argon, Kenneth Lopiano, Thomas Bohrmann,
Abhi Mehrotra, Jeffery Strickler
Using data from an emergency department, we investigate whether single station
queueing models with time or state dependent arrival and service rates can be
used to obtain good approximations for the census levels in practice.
2 - The Impact of Delay Announcement on Hospital
Network Coordination
Jing Dong, Northwestern University, 2145 Sheridan Road,
Tech C210, Evanston, IL, United States of America,
, Elad Yom-tov, Galit Yom-tov
We investigate the impact of delay announcement on the coordination within
hospital networks using a combination of empirical observations and numerical
experiments. We provide empirical evidence that patients do take delay
information into account when choosing Emergency Departments. We also
investigate factors that may affect the coordination level between hospitals.
3 - Identify Optimal Overflow Policies using Approximate
Dynamic Programming
Pengyi Shi, Assistant Professor, Krannert School of Management,
Purdue University, 403 W State St, West Lafayette, IN, 47907,
United States of America, J. G. Dai
To alleviate Emergency Department congestion, boarding patients who wait to be
admitted to inpatient wards may have to be overflowed to a non-primary ward
when they wait too long. We develop approximate dynamic programming tools
to identify the optimal overflow policies under different system states.
4 - A Data-driven Model of an Appointment-Generated Arrival
Process at an Outpatient Clinic
Ward Whitt, Columbia University, IEOR Department,
S. W. Mudd Building, New York, NY, United States of America,
, Won Chul Cha, Song Hee Kim
We analyze appointment-system data from an endocrinology outpatient clinic
and develop a stochastic arrival process model that can be used to simulate the
clinic and evaluate alternative appointment strategies. Variability is caused by
uncertain no-shows, unscheduled arrivals and earliness or lateness, but most
importantly by the schedule itself.
WB43
43-Room 103A, CC
Revenue Management Problems with Consumer
Choice Behaviors
Sponsor: Revenue Management and Pricing
Sponsored Session
Chair: Zizhuo Wang, Assistant Professor, University of Minnesota,
111 Church Street S.E., Minneapolis, MN, United States of America,
1 - When to Offer Upgrades?
Rowan Wang, Singapore Management University, 50 Stamford
Rd, Singapore, 178899, Singapore, ,
Yimin Yu, Huihui Wang
We consider a firm that sells multiple product models corresponding to multiple
classes of demand. The firm may offer customers free upgrade to a more
expensive model when there is insufficient stock of the one preferred. However,
customers may not accept the upgrade due to their preference on features of the
desired model. It is interesting to see that, knowing some customers may reject
the upgrade option, it might be optimal to offer upgrade earlier and before
stockout.
WB41