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INFORMS Nashville – 2016
276
4 - Pricing In A Two-sided Market With Time-sensitive Customers
And Suppliers
Mustafa Akan, Tepper School of Business, Carnegie Mellon
University, Pittsburgh, PA, United States,
akan@andrew.cmu.edu,
Philipp Afeche
We consider a firm that matches stochastically arriving and time-sensitive
customers and suppliers. We characterize the structure and performance of the
profit-maximizing and socially optimal pricing policies.
TB36
205B-MCC
Pricing and Supply Chain Management in
Healthcare Industry
Sponsored: Manufacturing & Service Oper Mgmt, Supply Chain
Sponsored Session
Chair: Mehmet Sekip Altug, George Washington University,
maltug@gwu.edu1 - Contracts For Referral Healthcare Services
Fernanda Bravo, Assistant Professor, UCLA, Los Angeles, CA,
United States,
fernanda.bravo@anderson.ucla.edu, Elodie Adida
This work focuses on the B2B interaction between a service requester and a
service provider in a healthcare environment. The requester is responsible for
managing the health of a population of patients, and refers the patient to a
provider for advanced care needs. The requester may exert effort to reduce the
volume of referrals and the provider may exert effort to reduce the chance of
treatment failure. We analyze a variety of payment systems between the two
firms and study how to coordinate the effort decisions with either the system
optimum or the social optimum.
2 - Drug Pricing For Competing Pharmaceutical Manufacturers
Distributing Through A Common PBM
Nan Yang, University of Miami, Coral Gables, FL, United States,
yangn@wustl.edu,Panos Kouvelis, Yixuan Xiao
We study the price competition among multiple branded drug manufacturers
when their drugs are distributed through a common Pharmacy Benefit Manager
(PBM). We characterize the downstream PBM’s optimal copayment and pricing
decisions, and establish conditions for the equilibrium analysis of the price
competition among the branded drug manufacturers. In particular, we provide a
sufficient condition for the uniqueness of the equilibrium, and characterize the
unique equilibrium in closed form. We apply our model to study the strategic
implications of vertical integration between a branded drug manufacturer and the
PBM.
3 - Policy And Product Launch Implications Of Parallel Imports In
Pharmaceutical Industry
Mehmet Altug, George Washington University,
maltug@gwu.edu,Ozge Sahin
While it may be socially optimal to introduce a new drug all over the world at the
same time, doing so may have adverse implications for drug developers, such as
the emergence of parallel imports. We study a pharmaceutical firm that already
introduced a pioneering drug in its home country, where the product is protected
by patent rules. The firm has to decide whether to launch in a second country in
the same region, where parallel import between these two countries is feasible
and if so how to price it. We characterize the joint equilibrium pricing and
product launch decision of the firm. We discuss how these decisions are a ected by
various parameters, including insurance, patient populations and negotiation.
TB37
205C-MCC
Sustainability Issues in Supply Chains II
Sponsored: Manufacturing & Service Oper Mgmt,
Sustainable Operations
Sponsored Session
Chair: Karthik Natarajan, University of Minnesota, University of
Minnesota, Edina, MN, Please fill in, United States,
knataraj@umn.edu1 - Optimal Contracts For Recycling And Refurbishment In The
Reverse Supply Chain
Aditya Vedantam, State University of New York at Buffalo,
Buffalo, NY, United States,
adityave@buffalo.edu,Ananth Iyer
Several companies contract with third parties to dispose end-of use electronics
involving recycling and refurbishment with subsequent resale. We present
examples of contracts currently used in the IT Asset Disposition industry, provide
insights on the profit and environmental impact and show how a customer can
optimally set contract parameters under uncertainty in condition of incoming
units. We parameterize our model to data from a third party e-waste recycler.
2 - Environmental Benefits Of Internet-enabled C2c Surplus Chains
Suvrat Dhanorkar, Pennsylvania State University, 120 Kenley
Court, State College, PA, United States,
ssd14@psu.eduRecently, online matching platforms (e.g. Craigslist, FreeCycle, Gumtree) have
enabled consumers to directly connect with each other to buy/sell surplus
consumer goods (electronics, furniture etc.), which would have otherwise ended
up in the waste stream. Such matching platforms can facilitate the creation of
C2C “surplus chains” for used goods, which can enhance product reuse and limit
reliance on recycling and disposal alternatives. We estimate the environmental
benefits of internet-enabled surplus chains.
3 - The Implications Of Eliminating Grading In Food Supply Chains
Karthik Murali, University of Alabama,
kmurali@cba.ua.edu,Isil Alev
Aside from imprudent consumer behavior, food grading based on aesthetics is the
biggest contributor to food waste in the U.S. This study explores the implications
of eliminating food grading in the agri-supply chain by considering the
introduction of differentiated produce at the retail level and its impact on
profitability, waste, and farmed acreage when consumers are heterogeneous and
produce quality is uncertain.
4 - Investigating The Impact Of Supply-chain Factors on
Counterfeit Parts
Vidya Mani, Pennsylvania State University, State College, PA,
United States,
vmani@psu.edu, Jayashankar Swaminathan
In this paper we investigate the relationship between supply chain factors and risk
of counterfeit parts. We quantify the effectiveness of inventory positioning,
distribution network, and information sharing through an empirical study of
counterfeit parts in the electronic parts supply chain.
TB38
206A-MCC
Reliability I
Contributed Session
Chair: Hui Wang, Florida State University, Tallahassee, FL,
United States,
hw11b@my.fsu.edu1 - Dynamic Reliability Modeling Of Software Errors
John G Wilson, Professor, Ivey School of Business, London, ON,
N6G ON1, United States,
jwilson@ivey.ca, Dov Te’eni
New errors can be dynamically introduced as new devices are produced and are
found to be incompatible with software that is perfectly good for other devices.
We provide a procedure for finding maximum likelihood estimators of key
parameters where the number of errors and the number of users can change. This
methodology is particularly apt for big data applications.
2 - Condition-Based Maintenance Policies Under The Gamma
Degradation Process
David Han, University of Texas at San Antonio, One UTSA Circle,
San Antonio, TX, 78249-0632, United States,
david.han@utsa.eduCondition-based maintenance is an effective method to reduce unexpected
failures as well as the O&M costs. This talk discusses the condition-based
maintenance policy with optimal inspection points under the gamma degradation
process. A random effect parameter is used to account for population
heterogeneities and its distribution is continuously updated at each inspection
epoch. The observed degradation level along with the system age is utilized for
making the optimal maintenance decision, and the structure of the optimal policy
is examined.
3 - A Combined Repair-replacement Warranty Policy Considering
Heterogeneous Usage Rate And Customer Error
Guozhen Xiong, graduate Student, Tsinghua University,
Department of Industrial Engineering, Tsinghua University,
Beijing, China, Beijing, 100084, China,
xgz14@mails.tsinghua.edu.cnWarranty has been widely used as a means of sales promotion. However, the
warranty services usually result in considerable cost and hurt a company’s
profitability. It is not uncommon that some failures within warranty period are
caused by customers’ improper use, which should not be covered by the warranty
service. Therefore, in order to minimize the total cost, this research studies the
integration of maintenance strategies with appropriate testing strategies to
identify failures that are out of warranty. Heterogeneous usage rate is also
considered. Numerical experiments are conducted to illustrate the influence of
different combinations of testing and maintenance strategies on warranty cost.
TB36