2016 INFORMS Annual Meeting Program

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INFORMS Nashville – 2016
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2 - Closing A Supplier’s Energy Efficiency Gap: The Role Of
Assessment Assistance And Procurement Commitment
Quang Dang Nguyen, University of Minnesota, Minneapolis, MN,
55455, United States,
Karen Donohue, Mili Mehrotra
This paper analyzes the Energy Efficiency (EE) investment decisions of a capital-
constrained manufacturer that competes with an alternate supplier for the
business of a large industrial buyer. Through a series of game theoretic models,
we analyze the impact of EE assessment assistance and procurement commitment
on the supplier’s EE investment.
3 - Mind The Gap: Coordinating Energy Efficiency And
Demand Response
Eric Webb, Kelley School of Business, Indiana University,
Bloomington, IN, 47405, United States,
Owen Wu, Kyle D Cattani
Traditionally, energy demand-side management techniques, such as energy
efficiency (EE) and demand response (DR), are evaluated in isolation. We
examine the interactions between long-term EE upgrades and daily DR
participation at an industrial firm. We find that EE and DR act as substitutes in
terms of reduction of peak electricity demand, and the long-studied energy
efficiency gap between firm-optimal and societal-optimal levels of EE is smaller
when DR is considered. We suggest three approaches to reducing the energy
efficiency gap, including an original suggestion that relies upon the interactions
between EE and DR.
MC30
202B-MCC
New Business Models In Transportation
Sponsored: Manufacturing & Service Oper Mgmt
Sponsored Session
Chair: Karan Girotra, INSEAD, Fontainebleau, France,
1 - Service Region Design For Urban Electric Vehicle Systems
Long He, National University of Singapore, ,
Ho-Yin Mak, Ying Rong, 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, with real operations data, we address a number of
planning questions.
2 - Dynamic Type Matching
Ming Hu, University of Toronto, Toronto, ON, Canada,
Yun Zhou
We study a dynamic multi-period assignment/transportation problem, in which
an intermediary dynamically matches demand and supply of heterogeneous types
and the unmatched will incur waiting or holding costs, and be carried over to the
next period with abandonments. This problem also applies to many emerging
settings in the sharing economy. The Monge sequence discovered by Gaspard
Monge in 1781 was introduced to solve a deterministic, balanced transportation
problem in a greedy fashion. We propose modified Monge conditions that are
sufficient and robustly necessary for structural priority properties for the dynamic,
stochastic and unbalanced transportation problem.
3 - Algorithmic Support For Bike-sharing System Operations
At Motivate
David B Shmoys, Cornell University,
Daniel Freund, Shane Henderson, Nanjing Jian
Bike-sharing systems (BSSs) have become increasinglly prevalent as part of the
urban landscape, and are common even in smaller towns. For larger cities, these
systems give rise to a number of interesting logistical problems to support their
operations. A group at Cornell has been embedded within the support structure
for Motivate, which operates BSSs in several major US cities. We will give an
update on a number of the models and algorithmic advances that have been
implemented to support operations at Motivate, and in particular, for Citibike in
NYC.
4 - Maximizing Ridership In Bike Sharing Systems Using Empirical
Data And Stochastic Models
Vinayak Deshpande, University of North Carolina, Chapel Hill, NC,
27599, United States,
Pradeep Kumar Pendem
We analyze the optimal allocation of bikes in a network of stations to improve
ridership under non-stationarity demand and station substitution. We utilize large
datasets on trips, real time inventory information at stations, and distances
between stations. Our demand model captures both bike pickups and dropffs, as
well as demand non-stationarity and substitution under stockouts. The optimal
allocation of bikes across stations to maximize ridership is determined using a
dynamic program. Our study provides insights on the relationship between the
allocation of bikes and ridership, and the value of incorporating non-stationarity,
real-time inventory information, and station substitution.
MC31
202C-MCC
Operational Issues in Agriculture
Sponsored: Manufacturing & Service Oper Mgmt, iFORM
Sponsored Session
Chair: Onur Boyabatli, Singapore Management University, 50 Stamford
Road 04-01, Singapore, 178899, Singapore,
1 - Designing Contracts And Sourcing Channels To Create
Shared Value
Joann de Zegher, Stanford University,
Hau Leung Lee, Dan Andrei Iancu
We study contract and channel design to create mutual benefit in decentralized
agricultural value chains, where suppliers bear costs of new technologies while
benefits accrue primarily to buyers. We provide insights to companies seeking to
incorporate responsible sourcing strategies while also creating economic value - a
concept called creating shared value. We identify that the technology’s cost
elasticity drives whether switching sourcing channel, changing contract structure,
or adopting an integrated change is necessary. Using a dataset of farms in
Argentina we estimate that the our mechanism could increase average supply
chain profit by 6.9% while realizing environmental benefits.
2 - Third-wave Coffee: Sourcing And Pricing A Specialty Product
Under Uncertainty
Shahryar Gheibi, Siena College, Loudonville, NY, United States,
Burak Kazaz, Scott Webster
Motivated by an emerging phenomenon in the coffee industry—third-wave
coffee—we study an agricultural supply chain where a firm sells a finished
product which requires processing an agricultural product as input. In order to
target the quality-sensitive segment of consumers, the firm (processor) offers
specialty coffee by engaging in Direct Trade which in turn leads to exposure to
supply risk. Our study provides insights into the main driving forces that
influence the sourcing and pricing decisions of the processor in a specialty-coffee
supply chain.
3 - New Results For Bounds In Newsvendor Problems
Saurabh Bansal, Penn State University,
We discuss new results for the bounds on the newsvendor problem in the
agribusiness context and quantify the value of decisions based on these bounds
over some commonly used approaches.
MC32
203A-MCC
Scheduling VI
Contributed Session
Chair: Matthew J Liberatore, Villanova University,
800 Lancaster Avenue, Villanova, PA, 19085, United States,
1 - Job Shop Scheduling With Convex Costs
Reinhard Burgy, GERAD and Polytechnique Montreal, GERAD –
HEC Montréal, 3000, ch. de la Côte-Sainte-Catherine, Montreal,
QC, H3T 2A7, Canada,
We address an extension of the classical job shop scheduling problem with a
generic convex cost objective. This objective makes it possible to model, for
example, convex tardiness costs and convex (intermediate) holding costs. It is, to
the best of our knowledge, the first time such a generic nonlinear and nonregular
objective is considered in job shop scheduling. We give a disjunctive graph
formulation and develop a local search heuristic. Numerical results support the
validity of our approach.
2 - Heuristics For Lot Streaming In Flow Shop Scheduling
Anurag Agarwal, Professor, University of South Florida,
Information Systems and Decision Sciences, Coll of Business,
Sarasota, FL, 34243, United States,
Ramakrishna Govindu
We develop heuristic solutions to generate efficient schedules for a lot streaming
scheduling problem within the flowshop environment. We formulate this
problem as a multiobjective problem that attempts to strike a balance between
makespan and cost of handling the sublots. We consider transfer times, sequence
dependent lot setup times, as well as sublot setup times.
MC30