2016 INFORMS Annual Meeting Program

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INFORMS Nashville – 2016
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4 - Multi-recipe & Multi-variety Blast Furnace Production Planning
Under Carbon Cap & Trade Policy Based In An Improved Block
Molding Method
Ye Yang, Southeast University, School of Economics and
Management, Southeast, Nanjing, China,
Wei-da Chen
Carbon emission reduction policies have become key elements affecting
production operations in the enterprises. Considering an iron making plant which
outputs various products by multiple recipes, it studies multi-period blast furnace
production planning problem with two types of carbon constraints (periodic
carbon constraint, cumulative carbon constraint) under Carbon Cap and Trade
policy. Firstly, based on an improved block molding method, two kinds of multi-
recipe and multi-variety iron blast furnace production planning MILP models are
constructed. Secondly, Cplex software is used for numerical analysis, discussing
the effects of carbon cap and carbon price on production planning.
TB74
Legends B- Omni
Optimization Methodology II
Contributed Session
1 - Global Optimum Of The Complementarity Constrained Program:
Algorithm And Application
Yu-Ching Lee, Assistant Professor, National Tsing Hua University,
No. 101, Section 2, Kuang-Fu Road,, Engineering Building I,,
Hsinchu, Taiwan, , En-Cheng Chang Chang
The complementarity constrained program is found well applied in the area of
inverse optimization, parameter selection, and hierarchical decision-making. The
global optimality in these applications are important compared with other
nonlinear programming problems. We discuss methodologies with some
numerical experiments in this talk.
2 - Computational Study On Bilevel Mixed Integer Convex
Programming Problems
Liang Xu, University of Pittsburgh, 3700 O’Hara Street,
1048 Benedum Hall, Pittsburgh, PA, 15261, United States,
Bo Zeng
In this talk, we present a solution algorithm for bilevel mixed integer nonlinear
(BiMINLP) programming problems through reformulation and decomposition.
For the mixed integer convex lower level problem, we show that strong duality
and KKT conditions of the continuous portion can be incorporated to achieve fast
computation. Our solution procedure is evaluated on instances from literature as
well as randomly generated ones, and a superior computational performance is
observed.
3 - Sales Persons Compensation Scheme Considering Customer
Satisfaction And Multiple Distribution Channels
Chulok Ahn, PhD Candidate, Korea University Business School,
Korea University Business School, Anam-ro, Seongbuk-gu, Seoul,
02841, Korea, Republic of, , Hosun Rhim,
Kwangtae Park
We examine the compensation strategy of a firm’s sales person in the multiple
distribution channels with customer satisfaction considered. While customer’s
satisfaction level differs to the distribution channel, the firm tries to find an
optimal compensation scheme for both direct and retail channel. The firm sells
same product with constant price but the incentive schemes differ on the basic
salary, sales commission, and customer satisfaction. The mathematical model
provides the optimal compensation schemes for both channels and can be applied
to a company using multiple distribution channels.
4 - Optimization Based Decision Tree Construction
Chaosheng Dong, University of Pittsburgh, 1025 Benedum Hall,
3700 O’Hara Street, Pittsburgh, PA, 15261, United States,
, Bo Zeng
We construct Decision Tree with an optimization-based approach.
TB75
Legends C- Omni
Behavioral Operations II
Contributed Session
Chair: Arpit Goel, PhD Student, Stanford University, 475 Via Ortega,
Huang Engineering Center, Stanford, CA, 94305, United States,
1 - The Behavioral Bayesian Newsvendor In Supply Chain
Ju Myung Song, Rutgers Business School, PhD Program,
Washington Park, Room 430C, Newark, NJ, 07102, United States,
, Xiaowei Xu
Behavioral Bayes’ rule using weighted updating model has been adopted in the
literature on behavioral economics. In this paper, we study a single-period
newsvendor problem with the supply chain coordination structure, and show
how this behavioral bias leads to forecasting bias and affects the coordination and
profit distribution.
2 - Impact Of Operational Failures On Worker Productivity: Evidence
From An Agribusiness Setting
Pradeep Pendem, PhD Candidate in OM, University of North
Carolina, Chapel Hill, 300 Kenan Center Drive, Chapel Hill, NC,
27599, United States,
Bradley R Staats, Paul Green, Francesca Gino
Failures in operational processes are ubiquitous in actual environments and play
an important role in worker performance. Utilizing real time with-in shift data of
harvest workers, we examine the impact of one class of operational failures,
Breaks and Disruptions on their productivity. We find that productivity follows an
inverted U-shaped response to breaks and negative effect to disruptions. In
addition, we show that these effects are exacerbated by workload. Our findings
suggest the need to give more emphasis on understanding the type of failure
before taking any corrective action. Our study has important implications on the
design of operating systems, scheduling policies more generally.
3 - Role Of Partnerships And Point Expiry On Customer Behavior In
Reward Programs
Arpit Goel, PhD Student, Stanford Univeristy, 475 Via Ortega,
Huang Engineering Center, Stanford, CA, 94305, United States,
Ashish Goel, Vijay Kamble
Customer behavior in loyalty programs is often attributed to irrational decision
making. We provide and analyze an alternate model under which this behavior
has a rational explanation. The key characteristics of our model are influence of
business partnerships which increase the exogenous visits by the customer
leading to higher switching costs with the reward program store and frequent
expiry of earned reward points which create an urgency to make more frequent
visits. We show that neither of these modeling assumptions provides a rational
explanation on its own, but both together justify many observed customer
behavioral aspects.
TB76
Legends D- Omni
Resource Allocation
Contributed Session
Chair: Lei Bu, Institute for Multimodal Transportation, Jackson, MS,
United States,
1 - Selecting Corporate Structure For Diversified Firms
Arkadiy Sakhartov, Assistant Professor, The Wharton School,
University of Pennsylvania, 2017 Steinberg Hall-Dietrich Hall,
3620 Locust Walk, Philadelphia, PA, 19104, United States,
The study explores implications of corporate structure for performance of
diversified firms. The benchmark for the scrutiny is the set of extant conflicting
predictions about the optimal choice of two features of corporate structure,
centralization of resource allocation and incentives to unit managers. The study
considers relatedness between a firm’s businesses and uses the option valuation
model to disentangle the existing conflicting predictions. The new results lay the
groundwork for a better empirical identification of the effects of relatedness and
corporate structure on corporate value, often tested in corporate diversification
research.
TB76