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INFORMS Nashville – 2016

343

TD28

201B-MCC

Topics in Sustainability

Sponsored: Manufacturing & Service Oper Mgmt

Sponsored Session

Chair: Arzum E Akkas, Boston University, Cambridge, MA,

United States,

aakkas@bu.edu

1 - Design Of Sales Compensation Schemes To Reduce

Product Waste

Arzum Akkas, Boston University,

aakkas@bu.edu,

Sahoo Nachiketa

We investigate sales-force compensation schemes that can alleviate product

expiration driven by over-selling in retail supply chains. Using sales commission

data from a consumer packaged goods manufacturer, we recommend parameters

for a compensation scheme based on our structural model of sales-force selling

behavior.

2 - Extended Warranties And Secondary Market Strategies

Wayne Fu, Georgia Institute of Technology, Atlanta, GA,

United States,

Wayne.Fu@scheller.gatech.edu,

Atalay Atasu,

Necati Tereyagoglu

We investigate the implications of extended warranties in a durable goods market

from both producer and environmental perspectives. Considering a product

subjected to failure, offering extended warranties helps an OEM increase the

value-added of its products, but implies repair costs and cannibalization from its

secondary market. In this context, we formulate a stylized durable goods model

that explores the interaction between the OEM’s warranty offerings and buy-back

programs (to reduce secondary market cannibalization). We find that the choice

of warranty offering is surprising non-monotonic in product failure and that

secondary market interference influences the choice significantly.

3 - Sustainable Urban Water Management

Buket Avci, Singapore Management University, Singapore,

Singapore,

buketavci@smu.edu.sg,

Onur Boyabatli

Climate change, escalating costs and other risks are causing cities to face ever-

increasing difficulties in efficiently managing scarcer and less reliable water

resources. We develop a stylized analytical model that captures the salient

features of urban water management by modeling different demand classes

(domestic vs. industrial) and supply processes (rainwater catchment, reclaimed

water and desalination).

4 - Re-manufacturability And Investment Planning

Avinash Geda, University of Florida, 361B Stuzin Hall,

Gainesville, FL, 32611, United States,

avinashgeda@ufl.edu,

Gulver Karamemis, Gulver Karamemis, Vashkar Ghosh,

Asoo J Vakharia

We consider a monopolist manufacturer who produces a single-branded product

and uses a mix of virgin and recycled materials in its production. The

manufacturer can invest in either upstream or downstream technologies or both

to improve recyclability/re-manufacturability and to reduce recycling costs

respectively. We investigate profit maximizing investment strategies in presence of

green consumers.

TD29

202A-MCC

Issues in Sustainable Operations

Sponsored: Manufacturing & Service Oper Mgmt,

Sustainable Operations

Sponsored Session

Chair: Adem Orsdemir, University of California Riverside,

900 University Ave., Riverside, CA, CA 92521, United States,

orsdemiradem@gmail.com

1 - Why And How Do Consumers Discount Remanufactured

Products?

James Duane Abbey, Texas A&M University, 4217 TAMU, College

Station, TX, 77843-4217, United States,

jabbey@mays.tamu.edu

,

Rainer Kleber, Gilvan Souza, Guido Voigt

We empirically isolate the impact of quality concerns on consumers’ willingness

to pay (WTP) and the likelihood to purchase remanufactured products. Perceived

risk, in the form of quality defects and cosmetic defects, has a significant impact

on WTP, even after controlling for the WTP for new products, and other

attributes.

2 - Coopeting For Green Product Development

Karthik Murali, University of Alabama, Tuscaloosa,

kmurali@cba.ua.edu

We study the impact of collaboration between supply chain partners and

coopetition between supply chains on the level of investment in green product

design and development and its ensuing implications to society and the

environment. We also address the role of policy makers in stimulating such

partnerships between organizations.

3 - Designing Sustainable Products Under Co-production Technology

Shouqiang Wang, Clemson University, 131D Sirrine Hall, Clemson,

SC, 29634, United States,

shouqiw@clemson.edu,

Yen-Ting

(Daniel) Lin, Haoying Sun

We consider a firm who utilizes co-production technology to introduce a green

product with raw material that would be otherwise discarded. Some consumers

value resource savings achieved by green product while others do not. We

examine impact of resource scarcity, technology feasibility, consumers’ greenness

on firm’s profitability and environmental impact.

TD30

202B-MCC

Innovative Data-driven Analyses in Healthcare

Research

Sponsored: Manufacturing & Service Oper Mgmt, Healthcare

Operations

Sponsored Session

Chair: Carri Chan, Columbia University, 3022 Broadway, Uris Hall 410,

New York, NY, 10025, United States,

cwchan@columbia.edu

Co-Chair: Jose Zubizarreta, Columbia University, 3022 Broadway, 417

Uris Hall, New York, NY, 10025, United States,

zubizarreta@columbia.edu

1 - Personalized Diabetes Management Using Electronic Medical

Records

Alexander M Weinstein, Massachusetts Institute of Technology,

Cambridge, MA, United States,

amw22@mit.edu,

Dimitris

Bertsimas, Nathan Kallus, Ying Zhuo

Current clinical guidelines for managing type 2 diabetes do not differentiate based

on patient-specific factors. We present a data-driven algorithm for personalized

diabetes management using a k-nearest neighbor approach. Using electronic

medical records for 10,806 type 2 diabetes patients from Boston Medical Center,

we evaluated the effect of the algorithm’s recommendations on matched patient

outcomes from unseen data. The personalized approach yielded substantial

improvements in glycated hemoglobin outcomes relative to the standard of care.

The algorithm’s evidence-based recommendations can be summarized for

providers in an intuitive, interactive dashboard.

2 - A Template Matching Approach To Comparing Hospital Quality In

An Integrated Health Care System

Wenqi Hu, Columbia Business School, New York, NY, United

States,

whu17@gsb.columbia.edu

, Carri Chan, Jose Zubizarreta,

Gabriel Escobar

There is a growing interest from healthcare providers and policymakers to better

measure and improve quality of hospital care. Commonly used risk adjustment

models can be inconsistent measures of hospital quality and do not enable a clear

understanding of the potential impact of unobservable risk factors on hospital

rankings. This work applies a new template matching approach to define a

reference population over which 21 hospitals within an integrated healthcare

system are compared. This approach enables more transparent comparisons than

prior approaches. We further quantify the influence of hospital operational factors

on patient outcomes for performance improvement considerations.

3 - A Room With A View: An Econometric Analysis Of How Facility

Layout Impacts Care Provision In The Emergency Department

Lesley Meng, Doctoral Candidate, The Wharton School, University

of Pennsylvania, 3730 Walnut Street, Suite 500 JMHH,

Philadelphia, PA, 19104, United States,

lmeng@wharton.upenn.edu

, Robert Batt, Christian Terwiesch

The hospital emergency department (ED) has frequently been used to study the

dynamics of service operations and how such operations adapt to fluctuations in

workload. We study how the facility layout of ED patient rooms impacts nurse

workflow decisions. Specifically, our dataset is comprised of infrared nurse

location tracking data from a large urban teaching hospital over a study period of

six consecutive months in 2013. In linking this to room occupancy patient data,

we are able to investigate potential facility layout variables, such as distance from

the nurses’ station, that impacts the patient’s length of stay in the ED through

variation in the amount of nurse attention received.

TD30