2016 INFORMS Annual Meeting Program

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INFORMS Nashville – 2016
167
MB55
Music Row 3- Omni
Inventory Management I
Contributed Session
Chair: Jagtej S Bewli, Director, Product Management, WalmartLabs,
850 Cherry Avenue, San Bruno, CA, 94066, United States,
1 - Inventory And Transportation Decisions For Two-echelon Closed-
loop Supply Chain Under Emission Constraint
Jian Li, PhD Candidate, Xi’an Jiaotong University,
No.28 Westing Xianning Road, Xi’an,+86-029-710049,China,
Qin Su
Closed-loop supply chain (CLSC) may cause more direct carbon emissions of used
product due to the reverse logistics and remanufacturing. In this paper, we
address the inventory and transportation management issue on CLSC system
consisting of supplier, manufacturer and retailer under cap-and-trade mechanism,
and develop a two-echelon system. Extra carbon permits can be taken as a kind of
environment resource as well as product to be traded and circulate. Further, we
consider decentralized decision-making with supplier, manufacturer and retailer
being Stackelberg leader, respectively, and have a comparative analysis with
centralized decision-making of CLSC through two numerical studies.
2 - An Inventory Problem With Substitution And Bayesian Estimation
Ulku Gurler, Professor, Bilkent University, Department of
Industrial Engineering, Ankara, 06800, Turkey,
In this study we consider an inventory problem with two substitutable products.
We use a bayesian approach to estimated the demand and substitution rates and
investigate the impact of the estimation method on inventory replenishment.
3 - Managing Perishable Inventory Systems With Multiple
Demand Classes
Rui Chen, University of Toronto, 105 St George St, Toronto, ON,
M5S 3E6, Canada,
Hossein Abouee Mehrizi, Opher Baron, Oded Berman
We study a multi-period stochastic perishable inventory system with multiple
demand classes that have different requirements on the age of acceptable
products. At the end of each period, the firm can savage inventory of any age. An
example is a food supplier selling products to retailers that have different market
size or have different geographical locations. We characterize the structure of
optimal ordering, allocation, and disposal policies. We examine the effectiveness
of the optimal control and how to best try and improve the control of perishables.
We also propose an effective and computationally-efficient heuristic,which is 5%
away from the optimal.
4 - The Design Of A Responsive Vaccine Supply Chain By The
Incorporation Of Production Capacity Into The Guaranteed
Service Approach
Stef Lemmens, KU Leuven, Naamsestraat 69 Box 3555,
VAT BE 0419.052.173, Leuven, 3000, Belgium,
, Catherine Jenny Decouttere,
Nico Vandaele, Mauro Bernuzzi, Amir Reichman
Both literature and industrial evidence emphasize the importance of the design of
a responsive vaccine supply chain as the manufacturing lead times are long and
highly variable. We model the buffer exchange between supply chain
responsiveness, multi-echelon inventory and production capacity by the
incorporation of queuing networks into the guaranteed service approach.
Furthermore, we apply our methodology to a real-life rotavirus vaccine supply
chain.
5 - Portfolio Management Approach To Inventory Optimization
Jagtej S Bewli, Director, Product Management, WalmartLabs,
850 Cherry Avenue, San Bruno, CA, 94066, United States,
Choosing the right inventory ‘investment’ for each SKU in the assortment can
improve service levels while reducing overall inventory. However, in spite of
significant advancement and research in inventory optimization techniques,
inventory policies in industry still managed based on ABC classification of
SKUs.Inventory recommendations from mathematically optimal inventory
policies may not always line up with human intuition therefore educating the
business user is key to driving adoption.
MB56
Music Row 4- Omni
Firm Competitive Strategies
Sponsored: EBusiness
Sponsored Session
Chair: Chao Ding, University of Hong Kong, KKL 807, Pok Fu Lam,
Hong Kong,
1 - Promotion Design In Free To Play Mobile Games
Sean Raphael Marston, Western Kentucky University,
Ismail Civelek, Yipeng Liu
In-game purchases, virtual goods/promotion design for heterogeneous consumers
and strong competition are key challenges for game providers. This paper
addresses determination of optimal promotion offerings for a game provider in
the presence of heterogeneous players and a competitor.
2 - Advertising Role Of Recommender Systems In Electronic
Marketplaces: Is It A Boon Or A Bane For Competing Sellers?
Lusi Li, University of Texas at Dallas,
This paper examines the intricate interaction between competing sellers’
advertising and pricing strategies in the presence of a recommender system in an
electronic marketplace.
3 - Competition And Efficiency In Express Service Industry
Yihong Hu, Assistant Professor, Tongji University, 1293,
Siping Road, Tongji University, Shanghai, 200092, China,
, Ruixia Shi
We consider service firms competing for customers sensitive to price and
congestion and operating through a platform which charges a transaction fee. We
establish upper and lower bounds of efficiency loss. With linear inverse demand
and homogeneous firms, the platform’s charge make the worst case increase from
1/4 to 9/16, additionally losing more than one half of social welfare compared to
free competition. When heterogeneous, it raise the bound to over 9/16,
depending on the largest gap between cost coefficients of firms and the maximum
ratio of volume-to-investment. For concave inverse demand and homogeneous
firms, the bound increases from 1/3 without the charge to 2/3 with the charge.
4 - The Centrality Of Ict In Network Structures Of Innovation And
Impact On R&D
Rajib L Saha, Assistant Professor, Indian School of Business,
Room 6123, AC6, Level 1, Hyderabad, 500032, India,
, Aditya Karanam, Deepa Mani
We document the centrality of Information and Communication Technology
(ICT) industries in network structures of innovation and its subsequent impact on
R&D processes and outcomes across diverse industries. We find strong evidence
for the impact of technology centricity of an industry’s innovations, as measured
by the industry’s position in the network relative to the ICT industries, on its R&D
productivity, new product creations, and recombinant intensity. Performance
volatility, spread and market returns of an industry also increase with the
technology centricity of its innovations.
MB57
Music Row 5- Omni
Queues and Customer Behavior
Sponsored: Behavioral Operations Management
Sponsored Session
Chair: Mirko Kremer, Frankfurt School of Finance and Management
gGmbh, Sonnemannstrasse 9-11, Frankfurt, 60314, Germany,
1 - Last Place Aversion In Queues
Ryan Buell, Assistant Professor, Harvard Business School, Morgan
Hall 429, Boston, MA, 02163, United States,
Michael Norton, Jay Chakraborty
Since customers dislike waiting, much of the existing queuing research
concentrates on what’s taking place ahead of the customer in line (service rates,
queue length, etc.). We examine whether what’s taking place behind the
customer - specifically, whether they are last in line - influences their perceptions
and behaviors. Through a combination of lab and field studies, we document how
being in “last place” diminishes wait time satisfaction, and increases the
probability of leaving the queue. We also test several interventions aimed at
reducing last place aversion and improving queue performance.
MB57