2016 INFORMS Annual Meeting Program

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INFORMS Nashville – 2016
311
TC27
201A-MCC
Empirical Studies in Supply Chain Management
Sponsored: Manufacturing & Service Oper Mgmt
Sponsored Session
Chair: Jun Li, Ross School of Business, University of Michigan,
Ann Arbor, MI, United States,
1 - The Causes Of Drug Shortages: An Empirical Analysis
Yixin (Iris) Wang, Ross School of Business, University of Michigan,
Ann Arbor, MI, United States, , Jun Li,
Ravi Anupindi
The country has seen an increasing number of drug shortages starting from mid-
2000s, which led to rationing in treatment, delays in care, increasing medication
errors and higher costs of care. This research tries to uncover the root causes of
drug shortages and to quantify the size of each of their impacts. In particular, one
of the objective is to understand what caused increasing quality problems? Is it
due to manufacturing quality deterioration (and if so, why)? Or is it due to
increasing FDA regulation stringency? To disentangle these possible causes, we
conduct text analysis on FDA warning letters from 2000 to 2015.
2 - Ration Gaming And The Bullwhip Effect: A Structural
Econometric Study
Robert Bray, Kellogg School of Management, Northwestern
University,
We develop a dynamic discrete choice estimator of (s, S) inventory models. We
apply this estimator to a 5,320-SKU, 1,371-day sample from a Chinese
supermarket to quantify the effect of ration gaming.
3 - Quality Propagation In The Supply Chain And Its Implication On
Customer Future Purchasing Behavior: An Empirical Study
Qiuping Yu, Kelley School of Business, Indiana University,
1309 E. Tenth Street, Bloomington, IN, 47405, United States,
Shawn Mankad, Masha Shunko
We integrate transaction data from all stages of the supply chain including the
manufacturers, distributors, restaurants and customers along with the customer
survey and supply chain complaints data from a fast food restaurant chain to
understand customer purchasing behavior. In particular, we focus on how
customer satisfaction, supply chain quality, and promotions shape customer
future purchasing decisions.
TC28
201B-MCC
Operations-Marketing Interface
Sponsored: Manufacturing & Service Oper Mgmt
Sponsored Session
Chair: Xuanming Su, University of Pennsylvania, Philadelphia, PA,
United States,
1 - Online And Offline Information For Omnichannel Retailing
Fei Gao, University of Pennsylvania, Philadelphia, PA,
United States, , Xuanming Su
Omnichannel consumers strategically make use of online and offline channels to
gather information and purchase products. We study different omnichannel
information strategies and their profit implications for firms.
2 - Leveraging Physical Presence In Omni-Channel Retail
Antonio Moreno-Garcia, Kellogg School of Management,
David Bell,
Santiago Gallino
With the growing relevance of online channels, retailers are exploring new ways
in which they can overcome the impediments associated with selling products
with non-digital attributes, such as apparel, without customers having physical
access to products. By implementing a series of randomized field experiments, we
study the value of virtual fit information in online retail.
3 - Signaling To The Crowd: Private Quality Information And
Rewards-based Crowdfunding
Robert Swinney, Associate Professor, Duke University,
100 Fuqua Drive, Durham, NC, 27516, United States,
, Soudipta Chakraborty
We consider the problem a seller designing a rewards-based crowdfunding
campaign via a platform like Kickstarter. The seller solicits donations from
contributors, and if total contributions exceed a pre-determined threshold the
campaign is a success, the seller receives all donations and each contributor
receives a reward; otherwise, contributors are refunded their donations and the
campaign is a failure. When contributors know less than the seller, e.g. about the
value of the reward or the likelihood of success, we determine how the seller
should design its crowdfunding campaign.
4 - Donor Product-subsidies To Increase Consumption: Implications
Of Consumer Awareness And Profit-maximizing Intermediaries
Terry Taylor, University of California Berkeley, Berkeley, CA,
94720, United States, , Wenqiang Xiao
Increasingly, donors that subsidize socially-desirable products (e.g., improved
cook stoves, malaria drugs) in the developing world are shifting from distributing
through non-commercial to commercial channels, ceding control of the product
price to for-profit intermediaries. This paper advises a donor as to how the donor’s
loss of price control and the level of consumer awareness—defined as the fraction
of the consumer population that is informed of the product’s benefits—influence
the donor’s optimal subsidy and utility.
TC29
202A-MCC
Issues in Environmental Operations: Managing Risk,
Customer Returns, and Regulations
Sponsored: Manufacturing & Service Oper Mgmt, Sustainable
Operations
Sponsored Session
Chair: Gokce Esenduran, Ohio State University, Columbus, OH,
United States,
1 - Risk Management Through Investment In Sustainability
Ali Shantia, HEC Paris, Paris, France,
Sam Aflaki, Hamed Ghoddusi
We study firms’ incentives to hedge input price risks through investment in
energy efficiency (EE) solutions. In particular, we focus on how the convexity in
profit function and the level and nature of uncertainties in the price of input
commodities affect the decision of a single firm regarding the level of EE
investment. We then characterize conditions under which investment in EE
solutions substitutes or complements conventional financial hedging mechanisms.
Finally, our analysis is further extended to a case with market power, where
multiple firms make strategic decisions regarding optimal hedging and
production.
2 - The Impact Of Consumer Returns On The Multichannel Sales
Strategies Of Manufacturers
Paolo Letizia, Assistant Professor of Business Analytics,
University of Tennessee, Knoxville, TN, 37996, United States,
, Terry P Harrison
Manufacturers can provide consumers with a higher value when selling products
through thei
3 - A Framework To Estimate The Economic And Environmental
Impacts Of Take-back Legislation
Eda Kemahlioglu-Ziya, North Carolina State University, Raleigh,
NC, United States, , Megan Jaunich, Hadi
Gashti, Joseph F DeCarolis, Robert Handfield, Ranji S Ranjithan
We develop a process model of returned product recycling under take-back
legislation. We use data from this model to populate an optimization model and
use it to estimate the cost and environmental impact of take-back legislation. Our
research provides insights regarding how costs and environmental impact
(measured in GHG emissions) of legislation change as implementation details
such as covered products, minimum take-back requirements change.
4 - Valuable E-waste: Implications For Extended Producer
Responsibility
Atalay Atasu, Georgia Institute of Technology,
Gokce Esenduran,
Luk N Van Wassenhove
In a market regulated with take-back regulation, if recycling is profitable then
producers have to compete with independent recyclers in collection and recovery
of end-of-life (EoL) products. We answer the question of whether recovery
targets lead to better environmental and economic outcomes in a competitive
market for EoL products. We also compare two regulatory scenarios, where only
producer collection counts and where both producer and recycler collection count
towards meeting recovery targets. Our results show that counting recycler
collection towards recovery targets does not always improve the welfare.
TC29