Informs 2015

445 / 552

INFORMS Philadelphia – 2015
443
WC51
51-Room 106B, CC
Consolidation and Asymptotics in Inventory
Sponsor: Manufacturing & Service Operations Management
Sponsored Session
Chair: Stefanus Jasin, Stephen M. Ross School of Business, University
of Michigan, Ann Arbor, United States of America,
Co-Chair: Linwei Xin, Assistant Professor, University of Illinois at
Urbana-Champaign, 104 S. Mathews Ave., Urbana, IL, 61801,
United States of America,
1 - Centralized and Decentralized Warehouse Logistics Collaboration
Shiman Ding, UC Berkeley, IEOR Dept., Berkeley, CA, 94720-
1777, United States of America,
Philip Kaminsky
An emerging paradigm for logistics collaboration in the grocery industry centers
on large third-party warehouses that multiple suppliers use as warehouses or
mixing centers, and from which multiple retailers order mixed-product
truckloads. We explore centralized and decentralized strategies for operating
shared warehouses, and characterize the loss due to decentralized operation.
2 - Shipment Consolidation for Online Retailers
Lai Wei, Stephen M. Ross School of Business, 701 Tappen Ave,
Ann Arbor, MI, 48109, United States of America,
, Roman Kapuscinski, Stefanus Jasin
The online retailers have a significant flexibility how to satisfy multiple orders for
customers. An existing order can be strategically delayed to combine with future
orders, such that a single shipping cost can be incurred for multiple orders. But
delaying the shipment increases the shipping cost itself, as shorter remaining time
requires expedited shipping. We characterize the structure of the optimal policy
and use such insights to construct easily implementable near-optimal heuristics.
3 - Asymptotic Optimality of Tailored Base-Surge Policies in
Dual-Sourcing Inventory Systems
Linwei Xin, Assistant Professor, University of Illinois at Urbana-
Champaign, 104 S. Mathews Ave., Urbana, IL, 61801,
United States of America, , David Goldberg
Dual-sourcing inventory systems are notoriously difficult to optimize. Recently,
so-called Tailored Base-Surge policies have been analyzed in Allon and Van
Mieghem(2010) and Janakiraman et al.(2014). Although numerical results have
suggested that such policies perform well as the lead time difference grows large,
providing a theoretical foundation for this phenomenon has remained a major
open problem. In this talk, we resolve this open problem by proving asymptotic
optimality of such policies.
4 - Replenishment Policies in Assemble-to-order Inventory Systems
with Non-identical Lead Times
Martin I Reiman, Bell Labs, 600 Mountain Ave., Murray Hill, NJ,
07974, United States of America,
Haohua Wan, Qiong Wang
In Assemble-to-Order systems, the use of one component often depends on the
availability of others. Thus ordering decisions for components with shorter lead
times should be coordinated with decisions made at earlier times for those with
longer lead times. The independent base stock policy does not have this feature
and we will assess the impact of this deficiency on the inventory cost. We will also
explore alternative policies that improve an asymptotic-optimality criterion.
WC52
52-Room 107A, CC
Retail Management III
Contributed Session
Chair: Amir Ghiasi, PhD Student, University of South Florida,
Department of Civil and Environmental Engineering,
4202 E. Fowler Avenue, Tampa FL 33620, United States of America,
1 - The Prepack Optimization: A Case Study of a Korean
Fashion Retailer
Shin Woong Sung, KAIST, 291 Daehak-ro, Yuseong-gu, Daejeon,
Korea, Republic of, , Young Jae Jang
This study considers a real-world inventory packing and distribution problem
called “PrePack Optimization Problem (POP)” at the largest outdoor-fashion
retailer in Korea, KOLON SPORT (K/S). We formulate a mathematical
programming model for POP and propose a solution approach which can be
efficiently utilized at K/S. The field experiments, conducted for two seasons,
revealed that the approach remarkably improved the inventory stability.
2 - Socio-demographic Characteristic Associated with the Location
of Organic and Local Food Stores
Amir Ghiasi, PhD Student, University of South Florida,
Department of Civil and Environmental Engineering, 4202 E.
Fowler Avenue, Tampa, FL, 33620, United States of America,
, Guangqing Chi, Chuo Li, Xiaopeng Li
In this study, physical accessibility to organic and local food is examined relative
to socio-demographic factors in New Orleans, LA. Linear and spatial regression
models are adopted to investigate how the socio-demographic variables correlate
with the distance of driving, biking, or walking to the stores. Results show that
accessibility to organic food stores is more in denser areas and areas with more
African-Americans, Hispanics and more educated people.
WC53
53-Room 107B, CC
Behavioral Issues in Supply Chains Regarding
Quality and Competition
Sponsor: Behavioral Operations Management
Sponsored Session
Chair: Yinghao Zhang, Assistant Professor, Salisbury University, 1101
Camden Avenue, Salisbury, MD, 21801, United States of America,
Co-Chair: Diana Wu, University of Kansas, Lawrence, United States of
America,
1 - The Decision to Recall: A Behavioral Investigation in the
Medical Device Industry
George Ball, PhD Candidate, University of Minnesota, 321 19th
Ave. S, Minneapolis, MN, 55455, United States of America,
Karen Donohue, Rachna Shah
Using a unique managerial subject pool with significant experience in product
recall decision-making, this study identifies factors that impel medical device
industry managers to decide to recall. We then incorporate a well-established
Cognitive Reflection Test (CRT) to highlight sources of individual heterogeneity
among recall decision-makers. The results of this study inform decision-making
literature and may be able to improve the product recall decision-making process.
2 - Should Suppliers Bear the Qualification Costs?
Theory and Experiments
Wei Chen, Assistant Professor, The University of Kansas, 1450
Jayhawk Blvd, Lawrence, KS, 66045, United States of America,
, Milind Dawande, Ganesh Janakiraman,
Elena Katok
A firm needs to source from a fixed-size pool of yet-to-be qualified suppliers for
an indivisible contract. The contract can only be awarded to a supplier who passes
a costly qualification test. Using the theory of optimal auction design and lab
experiments, we investigate the following questions: Should suppliers bear the
qualification costs in mechanisms that are optimal for the buyer? If suppliers are
asked to bear these costs, should the buyer reimburse them in any way?
3 - Social Comparison and Pull-to-Center in Newsvendor Contests
Valery Pavlov, The University of Auckland, Private Bag 92019,
Auckland, New Zealand,
Nagesh Gavirneni, Tony Lin
We study a game of two newsvendors competing for a fixed bonus. Its most
prominent feature is that the game is non-transitive (similar to Rock-Paper-
Scissors), and the best-response is almost always “to order a quantity a bit closer
to the mean than the competitor’s”. We test our model predictions experimentally
and (i) find that a pull-to-center dynamics can emerge due to social comparison,
and, (ii) find that friendship may be ineffective in mitigating competitive effects of
social comparison.
4 - Perceived Versus Actual Value of Product Substitution Flexibility
Brent Moritz, Assistant Professor, Supply Chain Management,
Pennsylvania State University, 469 Business Bldg., University
Park, PA, 16802, United States of America, ,
Saurabh Bansal
Using behavioral decision-making experiments for inventory of substitutable
products, we investigate how decision-makers perform when estimating the value
of operational flexibility of product substitution. Subjects consistently
overestimated the monetary value of product substitution, and this is related to
behavioral biases when estimating the conjunctive probability of substitution. We
demonstrate a probability decomposition-based approach to mitigate this
overestimation.
WC53