INFORMS Nashville – 2016
283
TB57
Music Row 5- Omni
Managing Decentralized Processes
Sponsored: Behavioral Operations Management
Sponsored Session
Chair: Enno Siemsen, University of Wisconsin, Madison, WI,
United States,
esiemsen@wisc.edu1 - Production Process Moves
Pettis Kent, University of Minnesota,
kentx143@umn.eduTo study the growing trend of multinational firms moving production processes
within and between countries to address strategy needs, we develop a behavioral
experiment where production teams build small devices for multiple rounds, with
“template use” and “product/process change” as the individual variables of
interest, and with cost (learning rate) as the dependent variable. Our research
objective is to better understand how firms can effectively manage process
knowledge during a production move.
2 - Ideation Execution Transition In Product Development
Evgeny Kagan, University of Michigan,
ekagan@umich.edu,Stephen Leider, William Lovejoy
We show experimentally that design performance is significantly worse when
designers decide for themselves how to schedule the development process. We
demonstrate several remedies for situations when external allocation of time to
development phases is not possible. Managers can improve performance by
“nudging” individuals towards early physical build, or by requiring them to
commit to a transition time beforehand. However, the most effective way to
improve performance is contingent transition - a requirement to present a
prototype that exceeds a minimum performance hurdle
3 - An Experimental Investigation Of Transshipment And Local
Decision Making
Shan Li, Baruch College, City University of New York, New York,
NY, 10601, United States,
shan.li@baruch.cuny.edu, Kay-Yut Chen
When a retailer has surplus stock and another retailer has inventory shortage, it
may be desirable to transfer surplus stock from the former to the latter. We
experimentally examine how the possibility of such transshipment between two
independent retailers affects each retailer’s local decisions of inventory and study
the formation of transfer prices under different price setting processes.
4 - Inventory Sharing Behavior
Enno Siemsen, University of Wisconsin - Madison, Madison, WI,
esiemsen@wisc.edu,Hui Zhao, Liang Xu
Inventory sharing systems are essential for decentralized decision makers to
benefit from aggregation. We use behavioral laboratory experiments to examine
inventory sharing behavior in the laboratory. Results from our experiments show
that the transfer price - which is a common tool to coordinate inventory sharing
systems - fails to influence our subjects initial order quantities, and thus does not
lead to a coordinated system. Further, we show that subjects are reluctant to ask
their supply chain partners for an adequate amount of information, and that the
potential to request inventory from other players leads to a general reduction in
initial order quantities.
TB58
Music Row 6- Omni
Energy X
Contributed Session
Chair: Farnaz Ghazi Nezami, Assistant Professor, Kettering University,
5336 Timberwood Point Drive, Flint, MI, 48532, United States,
fghazinezami@kettering.edu1 - Integrated Generated Expansion Planning By Considering
Wind Intermittency
Ahmet Akgun, Wichita State University, 3540 N Inwood Street,
Apt # 11305, Wichita, KS, 67226, United States,
ahmetie@yahoo.comA multiperiod mathematical programming model for integration of electricity
generation and transmission expansion planning and natural gas network
problem is proposed. The proposed model is formulated as a linear optimization
problem and it optimizes the operation, transmission and investment costs for
both systems at the same time. This paper aims to determine what kind of
generation units to be built, where to build those generation units, and when to
build. The mathematical model also includes the decision for new transmission
line for both natural gas and electricity. The proposed model is tested on a real
scale network to analyze the impact of the natural gas cost on the new
investment decisions.
2 - Energy-dependent Scheduling Of Non-identical Parallel Machines
Farnaz Ghazi Nezami, Assistant Professor, Kettering University,
5336 Timberwood Point Drive, Flint, MI, 48532, United States,
fghazinezami@kettering.edu,Mojtaba Heydar
In this study, we analyze the problem of job scheduling in non-identical parallel
machine production system with machine dependent processing durations to
minimize total completion time and energy costs. The energy costs in this study
include energy demand and consumption charges. We present a mixed integer
linear programming model to formulate the problem. The model is solved for
optimality using an exact approach and the performance is evaluated through
numerical experiments.
TB59
Cumberland 1- Omni
Innovations in Transporation Network Pricing
Sponsored: Transportation Science & Logistics
Sponsored Session
Chair: Roger Lloret-Batlle, University of California, CA, United States,
rlloretb@uci.edu1 - A Vulnerable Options-based Reservation Scheme For Highway
Facilities Subject To Degradation: Reservation Options
On Truck-only Lanes
Choungryeol Lee, Perdue University, West Lafayette, IN,
United States,
lee1210@purdue.edu,Srinivas Peeta
A vulnerable options-based reservation scheme is proposed for truck-only lanes.
The model incorporates risks for assuring a threshold traffic condition by
estimating the expected potential loss. A case study of reservation options on
truck-only lanes is used to estimate the loss and price reservations from the risk-
neutral perspective of rational users.
2 - Efficient Envy-free Pricing In Transportation Systems
Roger Lloret-Batlle, University of California, CA, United States,
rlloretb@uci.edu,R Jayakrishnan
We explore the envy-free pricing concept in multiple transportation contexts: (1)
in min-cost flow networks such as in P2P ride-sharing problems, where its
implementability as an ascending auction is examined, (2) in dynamic queue-
jumping highway operations, and (3) in traffic signal control, for fair
compensating payments in priced exchanges
3 - Dynamic Pricing And Reservation For Intelligent Urban Parking
Management
Chao Lei, University of Illinois at Urbana - Champaign,
2063 S. Orchard St. Apt A, Urbana, IL, 61801, United States,
lei8785@gmail.com, Yanfeng Ouyang
We study a real-time parking pricing and online reservation problem for the
intelligent parking system in busy urban neighborhoods. A dynamic non-
cooperative bi-level model and a non-myopic ADP solution approach are
developed to enable the agency to decide the spatial and temporal parking price
while considering the drivers’ competition for limited parking spaces at
equilibrium parking prices. The numerical results reveal that the ADP-based
pricing policy outperforms the myopic one in achieving greater performance of
the parking system.
TB60
Cumberland 2- Omni
Moving People and Goods More Efficiently in Traffic
Networks: Models and Algorithms
Sponsored: TSL, Urban Transportation
Sponsored Session
Chair: Trilce Marie Encarnacion, Rensselaer Polytechnic Institute,
Rensselaer Polytechnic Institute, Troy, NY, 00000, United States,
encart@rpi.edu1 - Design Of Multi-period Tradable Credit Scheme For Vehicular
Emission Reduction
Mohammad Miralinaghi, Purdue University,
smiralin@purdue.edu,
Srinivas Peeta
Credit-based congestion pricing is a strategy to manage traffic congestion and
emissions by creating artificial markets for mobility credits. We design a multi-
period tradable credit scheme to reduce vehicular emissions in a traffic network
by factoring interest rates over a long-term planning horizon. It is formulated as a
bi-level model where the credit allocation and link charging schemes are
determined at the upper level and the lower level describes credit usage and the
travel decision-making process of travelers
TB60