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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.edu

1 - 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.com

1 - Service Network Design With Heterogeneous Resource

Constraints: Branch-and-price Approach

Kai Wei, PhD, Tongji University, Siping Road, Shanghai, China,

0359weikai@tongji.edu.cn

In 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.edu

Probability-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