Informs 2015

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INFORMS Philadelphia – 2015
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2 - On Public Warnings in Counterterrorism Operations
Nitin Bakshi, London Business School, Regent’s Park, London,
United Kingdom, , Edieal Pinker
Public warnings, or terror alerts, might be a victim of their own success. Previous
alerts that negated an attack result in the perception of a false alarm. We study
the trade-off between the short-term benefit of a deferred attack, and long-term
costs such as erosion of credibility through false alarms.
3 - Dynamic Pricing, Product Evaluation Behavior, and Evolution of
Product Reviews
Necati Tereyagoglu, Assistant Professor of Operations
Management, Scheller College of Business, Georgia Institute of
Technology, 800 W Peachtree St. NW, Suite 4424, Atlanta, GA,
30308, United States of America,
Product review posters can exhibit bandwagon or differentiation behavior in their
evaluations in online marketplaces. Such differences can cause changes in the
composition of the posters over time, which in turn influence the evolution of the
ratings environment. In this paper, we examine the relationship between the
composition of posters and the evolution of the ratings environment, leading to
its effect on consumers’ purchase behavior, and dynamic pricing decisions of a
monopolist.
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47-Room 104B, CC
Sustainable Supply Chain
Sponsor: Manufacturing & Service Oper Mgmt/Sustainable
Operations
Sponsored Session
Chair: Xi Chen, Assistant Professor, University of Michigan-Dearborn,
4901 Evergreen Rd, Dearborn, MI, 48128, United States of America,
1 - Service Region Design for Urban Electric Vehicle Sharing Systems
Long He, University of California, Berkeley, 1117 Etcheverry Hall,
University of California, Berkeley, CA, 94720, United States of
America, , Zuo-jun Max Shen, Ho-Yin Mak,
Ying Rong
We consider the service region design problem for electric vehicle sharing
systems. We then develop a model that incorporates both customer adoption
behavior and fleet operations under spatially-imbalanced and time-varying travel
patterns. To address the uncertainty in adoption patterns, we employ a
distributionally-robust optimization framework. Applying this approach to the
case of Car2Go’s service in San Diego, CA, with real operations data, we address a
number of planning questions.
2 - Sourcing under Supplier Responsibility Risk: The Effects of
Certification, Audit and Contingency Pay
Li Chen, Associate Professor, Cornell University, 114 East Ave,
Ithaca, NY, United States of America,
Hau Lee
Companies that source from emerging economies often face supplier
responsibility risks, namely, financial and reputational burdens that the
companies have to bear when their suppliers’ engagement in noncomplying labor
and environmental practices is discovered by stakeholders or becomes public. In
this paper, we study how certification, audit and contingency payment can help
mitigate such risks.
3 - Green Sourcing-the Role of Premium Sharing and
Consulting Services
Xi Chen, Assistant Professor, University of Michigan-Dearborn,
4901 Evergreen Rd, Dearborn, MI, 48128, United States of
America, Niyazi Taneri, Saif Benjaafar
Certified sustainable products often times enjoy a significant green premium in
the retail market. In this paper, we study a retailer’s use of a sourcing contract as a
tool of incentivizing suppliers to exert greening efforts which improves the
chances of receiving certification, and in turn capturing the green premium. We
also explore the rationale for retailer to involve in suppliers’ greening efforts.
4 - Optimal Feed-in Tariff Policies: The Role of
Technology Manufacturers
Shadi Goodarzi, PhD Student, HEC Paris, 1 Rue de la Liberation,
Jouy en Josas, 78350, France, ,
Andrea Masini, Sam Aflaki
We assess the effectiveness of feed-in tariff policies in promoting renewable
energy technologies taking into account technology manufacturers’ decisions.
Modeling a three-tier supply chain that includes potential adopters, technology
manufacturers and a grid operator, we show that the ability of feed-in tariffs to
induce renewable energy adoption is strongly affected by the technology
manufacturers’ market characteristics.
WB48
48-Room 105A, CC
Information-Related Issues in Supply Chain
Management
Sponsor: Manufacturing & Service Oper Mgmt/iFORM
Sponsored Session
Chair: Mohammad Nikoofal, Catolica Lisbon School of Business &
Economics, UCP, Palma de Cima, Lisbon, 1649-023, Portugal,
Co-Chair: Mehmet Gumus, McGill University, 1001 Sherbrooke Street
West, Montreal, Canada,
1 - Generalized Reverse Auctions: Efficiency and Credibility under
Information Asymmetry
Hedayat Alibeiki, McGill University, 1001 Sherbrooke St. West,
Montreal, Qc, H3A 1G5, Canada, ,
Mehmet Gumus, Shanling Li
Non-price factors such as product quality and reliability can be even more
important than bidding prices for the buyers when selecting the winner of an e-
Auction. In practice, buyers usually evaluate and assign an originally-private
“quality score” to each supplier that determines the relative position of the
supplier toward its competitors. In this paper, we study whether or not and in
what fashion the buyer can credibly share suppliers’ quality scores with them.
2 - Towards a Counterfeit Proof Global Supply Chain
Morteza Pourakbar, Rotterdam School of Management, Erasmus
University, Rotterdam, the ,
Rob Zuidwijk
In this paper, we study the role of customs inspection policies on mitigating the
infiltration of counterfeiters in the legitimate supply chains. We characterize
customs optimal inspection policies taking into account the trade-off between
reducing the risk of infiltration and the detrimental impact of increased
inspections on supply chains.
3 - Impact of Category Captainship on Retail Competition
Alper Nakkas, Associate Professor, Nova SBE, UNLFE, Campus de
Campolide, NIF 506030636, Lisbon, 1099-032, Portugal,
The increasing complexity of product categories led retailers to recognize that
managing categories would be increasingly complex, time-consuming and
expensive. To answer these challenges and gain competitive edge, retailers began
partnering with their suppliers (i.e., category captains) for recommendations
about assortment selection, shelf design, displaying issuesÖetc. We examine the
incentives of category captains in a setting where two retailers compete to
increase their market shares.
4 - Supply Diagnostic Incentives in New Product Launch
Mohammad Nikoofal, Católica Lisbon School of Business &
Economics, UCP, Palma de Cima, Lisbon, 1649-023, Portugal,
, Mehmet Gumus
In launching new products, the newness of the production leads to unexpected
reliability issues on supply side. The adverse effect of supply risk can be mitigated
via test production. We explore how such a diagnostic technology investment
may affect both incentive and information asymmetries across channel partners.
WB49
49-Room 105B, CC
Supermodularity and its Applications in Operations
Management
Sponsor: Manufacturing & Service Oper Mgmt/Supply Chain
Sponsored Session
Chair: Daniel Zhuoyu Long, Assistant Professor, The Chinese University
of Hong Kong, Shatin, N.T., Hong Kong - PRC,
Co-Chair: Xin Chen, University of Illinois at Urbana-Champaign, Dept.
of Industrial & Enterprise Systems, 216C Transportation Building,
Urbana, IL, 61801, United States of America,
1 - Preservation of Structural Properties When Decision Variables Are
Truncated by Random Variables
Xiangyu Gao, ISE department, UIUC, 04Transportation Building
104 S. Mathews, Urbana, IL, 61801, United States of America,
Zhenyu Hu, Xin Chen
A common technical issue in many operations management models is decision
variables are truncated by random variables. The challenge is that the objective
functions are often not convex in the decision variables. To address this challenge,
we develop a powerful transformation technique which converts a non-convex
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