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INFORMS Philadelphia – 2015

469

WD49

49-Room 105B, CC

Facility Location I

Contributed Session

Chair: Kenneth Carling, Professor, Dalarna University, Sweden,

Högskolan Dalarna, Falun, 79188, Sweden,

kca@du.se

1 - Locating and Sizing Storage Units in a Drainage System using a

Simulated Annealing Approach

Maria Cunha, Professor, University of Coimbra, DEC Polo II da

Universidade, Coimbra, 3030-165, Portugal,

mccunha@dec.uc.pt,

Nuno Simıes, Joao Zeferino

Urban stormwater drainage systems are very important assets to sustainable

development. Attention must be paid to the effects of the rapid process of

urbanization and climate change with extreme weather and heavy rains occurring

more frequently. A pioneering tool will be presented, comprising interlinked

modules (including an optimization model for locating and sizing units to store

excess flows taking into account climate change) to redesign sustainable urban

stormwater drainage systems.

2 - Developing a Transportation Network for UAVs Delivery

Amirali Ghahari, University of Arkansas, 891 W. Melmar Dr.,

Apt #83, Fayetteville, AR, 72703, United States of America,

aghahari@uark.edu

, Edward Pohl

Recently, the use of Unmanned Ariel Vehicle (UAV) for package delivery has

become an interesting topic for giant corporations. In our research, we develop a

strategic model that constructs a transportation and support network which

enables the UAVs to fly long distances and make deliveries to a variety of demand

points. Since the developed models cannot be solved optimally for large

representative problems using exact methods, a heuristic algorithm is developed

to solve real world examples.

3 - Cold Supply Chain Design with Environmental Considerations:

A Simulation-optimization Approach

Ahmed Saif, University of Waterloo, 200 University Avenue,

Waterloo, Canada,

asaif@uwaterloo.ca,

Samir Elhedhli

Cold supply chains have high levels of greenhouse gas emissions due to the high

energy consumption and refrigerant gas leakages. We model the cold supply chain

design problem as a mixed-integer concave minimization problem with dual

objectives of minimizing the total cost and the global warming impact. A novel

hybrid simulation-optimization approach is propose to solve the problem.

4 - On Administrative Borders and Accessibility to Public Services

Kenneth Carling, Professor, Dalarna University, Sweden,

Hügskolan Dalarna, Falun, 79188, Sweden,

kca@du.se

,

Pascal Rebreyend, Xiangli Meng, Johan Håkansson

Do the Europeans suffer from a poor accessibility to public services due to internal

borders? We address this question by studying the effect of administrative borders

within Sweden on the population’s spatial accessibility to hospital service. We

have elaborated several scenarios ranging from strongly confining regional

borders to no confinements of borders as well as long-term population

redistribution. Our findings imply that the borders are only marginally worsening

the accessibility.

WD50

50-Room 106A, CC

Urban Spatial and Environmental Issues

Sponsor: Manufacturing & Service Operations Management

Sponsored Session

Chair: Elena Belavina, University of Chicago Booth School of Business,

5807 S Woodlawn Ave, Chicago, IL, United States of America,

elena.belavina@chicagobooth.edu

1 - Shipment Policies for Perishable Products in Two-tier

Supply Chains

Arzum Akkas, Boston University, 595 Commonwealth Avenue,

Boston, MA, United States of America,

arzumakkas@gmail.com

,

Vishal Gaur, David Simchi-levi, Roy Welsch

Product expiration is an important problem in the consumer packaged goods

industry with substantial impact on the environment and profits of firms. We

found that shelf life erosion is one of the drivers of expiration. In this study, we

establish shipment policies for manufacturers to address the shelf life erosion

problem.

2 - Online Fresh Grocery Retail: A La Carte Or Buffet?

Elena Belavina, University of Chicago Booth School of Business,

5807 S Woodlawn Ave, Chicago, IL, United States of America,

elena.belavina@chicagobooth.edu

Grocery delivery is a market that many try to conquer. Appropriate pricing is key

for success. There is little consensus among different players (at times even within

one firm operating in different locations) on what is the best pricing scheme. For

example, Amazon Fresh in Seattle is using per order pricing while in San

Francisco - subscription fee. We provide recommendation for the preferred

pricing scheme based on various characteristics (delivery logistics, demand

variability etc.).

3 - Customer Behavior in Bike-share Systems

Karan Girotra, Associate Professor, INSEAD,

Boulevard de Constance, Fontainebleau, 77300, France,

Karan.Girotra@insead.edu

Using a large high-frequency dataset, we identify the impact of the accessibility of

bike-share stations and the associated service-levels on the usage of these systems.

We illustrate the use of our estimates to support operational decisions such as

station network reorganization and system investments.

4 - Service Region Design for Urban Electric Vehicle

Sharing Systems

Ho-Yin Mak, Associate Professor, Saod Business School,

University of Oxford, Park End Street, Oxford, United Kingdom,

Ho-Yin.Mak@sbs.ox.ac.uk,

Ying Rong, Long He,

Zuo-Jun Max Shen

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.

WD51

51-Room 106B, CC

Strategic Behavior and Decision Making within

Supply Chains

Sponsor: Manufacturing & Service Operations Management

Sponsored Session

Chair: Pelin Pekgun, Assistant Professor, University of South Carolina,

1014 Greene Street, Columbia, SC, 29208, United States of America,

pelin.pekgun@moore.sc.edu

1 - The Effects of Product Recalls on Promotions and Sales

Yan Dong, Moore School of Business, University of South

Carolina, 1014 Greene St, Columbia, SC, 29201, United States of

America,

Yan.Dong@moore.sc.edu

, Chen Zhou, Rafael Becerril,

Tony Haitao Cui

This study investigates firm decisions in response to a major product recall, which

has a direct effect to the recalled brand and an indirect effect to the market and

the competitors. In the wake of the recall, firms may adopt different strategies to

take advantage of the recall, by promoting their own products more aggressively,

for example, to increase sales. Analyzing a dataset of recalls in the automobile

industry, this study shows how the competitors can proactively react to a major

recall.

2 - Mitigating Supplier Risks via Diversification Versus Improvement:

An Experimental Evaluation

Basak Kalkanci, Georgia Institute of Technology,

800 W Peachtree St, NW, Atlanta, GA, United States of America,

Basak.Kalkanci@scheller.gatech.edu

Using economic experiments, we evaluate the performance of supplier

diversification versus improvement to mitigate supply chain risks of a buyer

facing suppliers with different costs and risk profiles. We show that the buyers

diversify their orders more than theory and the orders are artificially inflated to

benefit from quantity hedging. We also demonstrate that sourcing commitment

hurts a buyer by reducing the subsequent supplier improvement effort, contrary

to theory.

WD51