Informs 2015

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INFORMS Philadelphia – 2015
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3 - The Performance Benefits of Not Working
Bradley Staats, Associate Professor, UNC-Chapel Hill, NC,
United States of America,
Using lab and field experiments we examine how performance may be improved
by doing less and thinking more.
4 - The Persistence of Customer Incompatibility: Evidence from a
Retail Bank Acquisition
Ryan Buell, Harvard Business School, Morgan Hall 429,
Boston, MA, 02163, United States of America, ,
Dennis Campbell
When a firm acquires a customer whose needs and preferences are misaligned
with its operating system, will the customer’s preferences conform over time? Will
the customer defect? Or, will the misalignment persist? We leverage a natural
experiment created when one nationwide retail bank acquired another to answer
these questions.
WD47
47-Room 104B, CC
Strategic Planning for the Closed Loop Supply Chain
Sponsor: Manufacturing & Service Oper
Mgmt/Sustainable Operations
Sponsored Session
Chair: Daniel Steeneck, Post Doctoral Associate, MIT Center for
Transportation and Logistics, 1 Amherst St., E40-211, Cambridge, MA,
02142, United States of America,
1 - To Remarket Now or Save for Warranty Claims
Cerag Pince, Kuehne Logistics University, Grosser Grasbrook 17,
Hamburg, Germany, , Beril Toktay,
Mark Ferguson
Consumer returns constitute a substantial fraction of sales in the consumer
electronics industry and often cannot be re-sold as new due to litigation concerns.
Therefore, identifying the best joint pricing and disposition strategy is a
challenging but important decision for consumer electronics OEMs. This paper
investigates how an OEM should price new and refurbished products while
allocating consumer returns between remarketing and warranty coverage options
over the product’s short life cycle.
2 - Optimal Product Design in a Remanufacturing Setting
Serkan M. Akturk, PhD Candidate, Texas A&M University, 4217
TAMU Wehner 320 M, College Station, TX, United States of
America, , James Abbey, Neil Geismar,
V. Daniel R. Guide, Jr.
This study analytically investigates how remanufacturing firms should choose
among varying design philosophies ranging from integral to modular to part-
based designs. Firms believe that increasing the level of remanufacturability
would also increase the profitability by lowering remanufacturing costs. However,
several factors such as industry clockspeed and time-to-market complicate this
decision.
3 - The Effect of Channel Structure on End-of-Life Product
Collection Strategies
Elizabeth J. Durango-Cohen, Associate Professor, Illinois Institute
of Technology, 10 W. 35th Street, Chicao, IL, 60616,
United States of America, , Chia-hang Li
In this talk, we address the coordination issue of deciding on the proper reverse
channel strategy to collect End-of-Life products in a three-echelon closed-loop
supply chain, under the presence of a strategic recycler. We find that the
manufacturer is always better-off by outsourcing product collection activities
either to the retailer or the recycler. We discuss the impact of a strategic recycler,
whether a price taker or price maker, on equilibrium prices, profits, and collection
rates.
4 - End-of-life Option and Product Design
Daniel Steeneck, Post Doctoral Associate, MIT Center for
Transportation and Logistics, 1 Amherst St., E40-211, Cambridge,
MA, 02142, United States of America, ,
Subhash C. Sarin
The characteristics of a product and its parts determine its optimal End-of-Life
(EOL) option. However, a product’s design plays a large role in determining the
characteristics of a product. Insights relating product design to optimal EOL option
are presented.
WD48
48-Room 105A, CC
Revenue Management Pricing II
Contributed Session
Chair: John Wilson, Ivey School of Business, 1255 Western Road,
London, ON, N6G 0N1, Canada,
1 - Optimal Subscription Pricing for Free Delivery Services
Chinmoy Mohapatra, PhD Candidate, University of Texas at
Austin, 3500 Greystone Drive, Apt. 126, Austin, TX, 78731,
United States of America, , Anant
Balakrishnan, Shankar Sundaresan
We study the subscription pricing problem of a retailer that offers its consumers
two delivery choices: a pay-per-delivery option and a subscription option with
free delivery. The retailer balances the “loss” incurred in covering the shipping
costs of subscribers against the increase in revenue from the “lift” in their order
quantity. Considering a model with a general utility framework, heterogeneous
consumers, and an outside option, we characterize the retailer’s optimal
subscription price.
2 - Budget Constrained Markdown Optimization
Emrah Zarifoglu, Team Leader - Optimization And Modeling,
IBM, 1001 Hillsdale Blvd. Ste 400, Foster City, CA, United States
of America, Xiao Chun Li,
Jun Lei Chen
Markdown is a schedule of known price reductions taken over short time with
the purpose of managing a product out the assortment gracefully and cost-
effectively. Markdown budget is an important constraint when retailers run a
markdown recommendation for a plan. It is crucial to limit total markdown
dollars under budget. We provide a method to ensure markdown dollar to be
limited to markdown budget and avoid the performance issue when considering
the total budget across all store-products level.
3 - Dynamic Nonlinear Pricing of Inventories Over Finite
Sales Horizons
Yan Liu, University of Science and Technology of China,
No.96, Jin Zhai Road Baohe District, Hefei, China,
, Guillermo Gallego, Michael Li
We present three dynamic pricing models in a setting where customers can be
incentivized to purchase multiple units. The dynamic linear pricing (DLP)model
charges a uniform price that depends on the time-to-go and the remaining
capacity. The dynamic package pricing (DPP) model allows complete freedom in
pricing different bundle sizes. We also study dynamic block pricing (DBP) as an
intermediate scheme where prices are linear within each block.
4 - Dynamic Pricing for a Single Perishable Product Based on
Customer Inertia
Yusheng Hu, Student, School of Management and
Economics,Beijing Institute of Technology, No. 5 South Zhong
Guan Cun Street, Beijing, 100081, China,
, Jinlin Li
This paper investigates a dynamic pricing problem for a single perishable product
in the presence of customer inertia. Dynamic pricing model about customer
inertia is established using the dynamic programming method, and structural
properties of the optimal price are given. The results show that customer inertia
produces negative effect on the optimal price, which is monotonically decreasing
in inertia depth and inertia breadth.
5 - Optimising Name-your-own-price Auctions Over Different
Channels and Number of Bids
John Wilson, Ivey School of Business, 1255 Western Road,
London, ON, N6G 0N1, Canada,
Optimality results for designing Name-Your-Own-Price Auctions with other
distribution channels will be presented. For the case of just a Name-Your-Own-
Price Auction, the optimality results regarding allowing one or more bids will be
presented.
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