INFORMS Philadelphia – 2015
469
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49-Room 105B, CC
Facility Location I
Contributed Session
Chair: Kenneth Carling, Professor, Dalarna University, Sweden,
Högskolan Dalarna, Falun, 79188, Sweden,
kca@du.se1 - 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.edu1 - 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.eduGrocery 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.eduUsing 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.edu1 - 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.eduUsing 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