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INFORMS Nashville – 2016
328
2 - Developing A Novel Service-part Classification Approach For
Large-scale Multi-echelon Replenishment System
Alireza Sheikhzadeh, PhD Candidate, University of Arkansas, 4207
Bell Engineering Center, Fayetteville, AR, 72701, United States,
asheikhz@uark.edu, Manuel D Rossetti
The purpose of this research is to create, analyze and test a new classification
approach for large-scale multi-echelon service-part replenishment system. The
classification approach is defined to address the need to provide the lowest
penalty cost associated with grouping. In this research, we define the concept of
artificial stocking policy (ASP) as a new classification criterion. We also propose a
new partitioning approach which takes into the account the characteristics of the
(aggregated) pseudo-items.
3 - How To Get The Conflict Out Of The Mineral Supply Chain
Han Zhang, Student, Kelley School of Business, Indiana University
Bloomington, IN, 47408, United States,
hz8@indiana.edu,
Goker Aydin, H. Sebastian Heese
New legislation requires manufacturers to disclose their sources of “conflict
minerals” - natural resources whose trade might finance conflicts. We study the
effect of such interventions, using a model with mines, smelters, and
manufacturers. We show that imposing penalties on manufacturers alone is not
sufficient to eliminate conflict minerals from supply chains, and that an industrial
alliance to pool audit costs among compliant manufacturers can be effective in
increasing the equilibrium quantity traded of certified metal.
4 - Sourcing And Procurement Coordination In Multi-division Firms
Fang Fang, California State University, LA, 1250 S Alhambra
Circle, Apt 18, LA, CA, 33146, United States,
f.fang@umiami.edu,
Harihara Natarajan
Large firm must coordinate multiple divisions’ procurement activities to leverage
volume discounts from suppliers. Facing such a procurement coordination
problem, we examine how a firm can design transfer prices to maximize firm-
wide cost savings considering divisional off-contract buying. Our analysis of
commonly-used transfer pricing rules shows interesting impacts on vendor
selection, divisional participation, and gain allocation
TC73
Legends A- Omni
Operations Management III
Contributed Session
Chair: Sanchoy Das, New Jersey Institute of Technology, University
Heights, Newark, NJ, 7102, United States,
das@njit.edu1 - Design Of Operational Policies To Reduce Boarding Time In
Emergency Departments
Cheng Zhu, McGill University, 701-801 Sherbrooke Est, Montreal,
QC, H2L 0B7, Canada,
cheng.zhu@mail.mcgill.ca,
Beste Kucukyacizi
In this research, we aim to reduce emergency department overcrowding by
shortening waiting times for: i) for an admission by a consulting physician, ii)
boarding to the inpatient ward. We consider patient flows in an open queueing
network in the hospital, while the availability of inpatient beds in each ward is
exogenous for physicians. Then, we focus on designing admission and boarding
policies based on different possibility of given inpatient bed availability.
2 - Efficient Business Operations In A Poultry Firm
Sanjeev K Bordoloi, University of St. Thomas, Opus College of
Business, 1000 LaSalle Avenue, TMH 443, Minneapolis, MN,
55403, United States,
sbordoloi@stthomas.edu, Jahnavi Indukuri,
Indukuri Srinivas Varma
In life-stock business, it is important to make operational decisions. This paper is
an analysis of a poultry business in India. We conducted several optimization
analyses on decision parameters such as life cycle of birds, break-even point,
investment options, branding, and expansion.
3 - Advanced Orders Picking Heuristics For Internet Fulfillment
Warehouses With And Explosive Storage Policy
Sanchoy Das, New Jersey Institute of Technology, University
Heights, Newark, NJ, 07102, United States,
das@njit.edu,
Sevilay Onal
IFWs use an explosive storage policy whereby the same item is stored
simultaneously in small lots in a large number of locations. Customer orders
arrive continuously and the IFW objective is to minimize the fulfillment time. For
a free picker the list of candidate picks is very large, and the solution space is
described by the product of the number of pending orders and the active
inventory locations. Decision variables are (i) which orders to serve next and (ii)
which storage locations to fulfill the orders from. We present a narrow band
selection heuristic which generate dynamic pick lists.
TC74
Legends B- Omni
Optimization Methodology III
Contributed Session
Chair: Mahamaya Mohanty, Research Scholar, IIT Delhi,
Shaheed Jeet Singh Marg, New Delhi, 110016, India,
mahamayamohanty@gmail.com1 - Service Network Design With Heterogeneous Resource
Constraints: Branch-and-price Approach
Kai Wei, PhD, Tongji University, Siping Road, Shanghai, China,
0359weikai@tongji.edu.cnIn this paper, we first present two kinds of different formulations for service
network with heterogeneous asset constraints. The first is node arc formulation
and the second is path cycle formulation. In the problem, we assume that each
asset has a specific fixed cost and capacity and each arc can be used be several
assets simultaneously. We introduce a branch and price algorithm to solve the
path cycle formulation and use CPLEX to solve node arc formulation. The
experimental results show our branch and price outperform CPLEX, especially in
large benchmark instances.
2 - Selective Linearization For Multi-block Convex Optimization
Yu Du, PhD Candidate, Rutgers University, 100 Rockafeller Road,
Piscataway, NJ, 08854, United States,
duyu@rutgers.edu,Andrzej Ruszczynski, Xiaodong Lin
We consider the problem of minimizing a sum of several convex non-smooth
functions. We introduce an algorithm called the selective linearization method,
which iteratively linearizes all but one of the functions and employs simple
proximal steps. The algorithm is a form of multiple operator splitting in which the
order of processing partial functions is not fixed, but rather determined in the
course of calculations. Global convergence is proved and estimates of the
convergence rate are derived. Specifically, the number of iterations needed to
achieve solution accuracy is of order O(ln(1/ )/ ). We also illustrate the operation
of the algorithm on large scale structured regularization problems.
3 - Globally Convergent Probability-one Homotopies For Linear
Programs With Complementarity Constraints
Stephen C Billups, Associate Professor, University of Colorado
Denver, Dept. of Mathematical & Statistical Sciences, Campus Box
170, P.O. Box 173364, Denver, CO, 80217-3364, United States,
stephen.billups@ucdenver.eduProbability-one homotopy algorithms work by tracking the zero set of a specially
constructed homotopy mapping from a known point to a solution to the problem
at hand. To apply this idea to linear programs with complementarity constraints
(LPCCs), we consider a family of relaxations of the LPCC and replace the
complementarity constraints with nonlinear relaxations of NCP functions. Two
different homotopy mappings have been developed based on these ideas. We
show that these mappings have several desirable properties and we illustrate
these properties using small numerical examples.
4 - Application Of Analytics In Modeling The Decision Making
Perspectives Of Integrated Logistics In Supply Chain
Mahamaya Mohanty, Research Scholar, IIT Delhi,
Shaheed Jeet Singh Marg, New Delhi, 110016, India,
mahamayamohanty@gmail.com,Ravi Shankar
As sustainability is a growing concern in a supply chain, we aim to model
integrated logistics with a formulation of Sustainable Index(SI). To obtain an
optimal solution to rising problems of logistics in a company, the decision maker
should take into consideration the reduction of energy consumption, carbon
emission, and waste generation to achieve sustainability. Formulation of
Sustainability Index is considered by taking into account minimization of cost,
time, and risk and maximizing quality, flexibility and revenue.
TC73