2016 INFORMS Annual Meeting Program

346 / 561

INFORMS Nashville – 2016
346
2 - Optimal Procurement Auctions Under Multi-stage Supplier
Qualification
Wei Chen, University of Kansas, , Milind
Dawande, Ganesh Janakiraman
We consider a firm that solicits bids from a fixed-sized pool of yet-to-be-qualified
suppliers for an indivisible contract. The contract must be awarded to a supplier
who passes a multi-stage qualification process. For each stage of the process, the
buyer incurs a fixed testing cost for each supplier she chooses to test. Motivated
by the buyer’s urgency of time (or the lack of it) for completing the process, we
study optimal mechanisms for the buyer under two testing environments:
simultaneous testing, where in each stage, the buyer selects a subset of previous-
stage-qualified suppliers and tests them simultaneously; and non-simultaneous
testing, where simultaneous-testing is not required.
3 - Global Sourcing Under Non-contractible Capacity And
Asymmetric Cost Information
Ehsan Bolandifar, The Chinese University of Hong Kong, Hong
Kong, Hong Kong, , Fuqiang Zhang,
Tianjun Feng
This paper studies a global sourcing problem where a buyer sources a product
from a supplier to satisfy uncertain market demand. The buyer faces two issues
when designing the sourcing contract: the supplier’s cost structure is private
information and the supplier’s capacity investment is not contractible. We show
that the presence of moral hazard does not necessarily lead to a lower profit for
the buyer, but it may require a more complex contract format. We find that a
single, linear contract could be optimal for the buyer under certain conditions.
Even when such a contract is suboptimal, it can deliver close-to-optimal profit for
the buyer for a wide range of situations.
4 - Screening Product Quality With Service Contracts
Dong Li, Singapore University of Technology and Design,
Singapore, Singapore, Nishant Mishra,
Serguei Netessine
We study contracting for product support under information asymmetry. Product
reliability is privately informed for the customer, and the supplier then designs
mechanisms to achieve screening product failure rates. We investigate the
screening effects of two types of service agreement: Performance-based Contracts
(PBC) and Transaction-based Contracts (TBC). Despite the advantages of PBC
highlighted in previous studies, we find that TBC may have a lower screening cost
than PBC when the customer has high levels of reserved utility. Our model
provides theoretical supports for co-existence of multiple contract forms in
product repair and maintenance outsourcing.
TD37
205C-MCC
Investment in Renewable Energy and Energy
Efficiency
Sponsored: Manufacturing & Service Oper Mgmt, Sustainable
Operations
Sponsored Session
Chair: Safak Yucel, Duke University, 100 Fuqua Drive, Durham, NC,
27705, United States,
1 - The Impact Of Carbon Pricing On Improving Supply Chain Energy
Efficiency
Quang Dang Nguyen, University of Minnesota,
, Karen Donohue, Mili Mehrotra
We study the impact of a carbon pricing policy and its accompany on the energy
efficiency investment decisions of a small manufacturing supplier facing
competition for the business from a large industrial buyer. We also derive the
optimal strategy for policy maker and the resulting social welfare, taking into
consideration the social and environmental externalities of the supplier’s
operations.
2 - Quantifying The Impact Of Intermittent Renewable Generation On
German Electricity Market
Shadi Goodarzi, HEC Paris,
Shadi Goodarzi, California State University Fullerton, Fullerton,
CA, United States, , Derek W Bunn, Syed
Basher
How does the penetration of renewable energy affect electricity market? Using
high frequency 15-minute interval data, we quantify the impact of wind and solar
production forecast errors on intraday electricity market equilibrium in Germany.
We find, among others, higher wind and solar production forecast errors decrease
the spot price and supply-demand imbalance.
3 - Designing Hydro Supply Chains For Water, Food, Energy And
Flood Nexus
Kwon Gi Mun, Assistant Professor, Fairleigh Dickinson University,
1000 River Rd. H-DH2-06, Teaneck, NJ, 07666-1914, United
States, Raza Ali Rafique, Yao Zhao
We study the nexus of water, food, energy and flood, which are among the most
formidable challenges faced by developing countries around the world. The
development of hydropower has the potential to address all these issues in the
same time and thus is prioritized in the international community to reduce
poverty, promote the sustainable development of the economy, and achieve the
Millennium Development Goals. We apply the SCM concept to water resource
development and provide the end-to-end and dynamic perspectives (the supply
chain perspectives) needed in the expansion of hydropower network for energy
security, irrigation and flood control.
4 - Reversing The Death Spiral: A New Business Model For Utility
Firms Under Social Network Effects
Safak Yucel, Georgetown University, Washington, DC, United
States, Gurhan Kok, Kevin Shang
Utility death spiral describes a phenomenon in which retail electricity prices
increase as more consumers invest in residential rooftop solar panels. In this
paper, we present a technology-adoption model and show that this phenomenon
occurs because of the current net metering policy, which allows consumers to sell
their excess electricity back to utility firms. We then study several new business
models that aim to counteract the death spiral phenomenon.
TD38
206A-MCC
Service Science I
Contributed Session
Chair: Sreekanth V K, Research Scholar, Indian Institute of Technology
Kharagpur, Kharagpur, 721302, India,
1 - Impact Of Staffing Flexibility On Unit Climate And Patient Safety
In Hospitals
Adelina Gnanlet, Associate Professor, California State University-
Fullerton, 800 N State College Blvd, Department of Management,
Fullerton, CA, 92831, United States, , Chris
McDermott, Rommel O Salvador
Floating, the frequent use of flexible staff, is typically associated with the benefits
of scheduling ease and lowered costs but results in work interruption and
discontinuity of patient care in hospitals. Therefore, higher floating can lead to
deterioration of staff unit climate and patient safety. Using unit-level data from
hospitals, we find that floating more than 8hrs negatively impacts patient safety,
with unit climate mediating the relationship between floating and patient safety.
2 - Two New History-based Delay Predictors For Call Centers
Wyean Chan, Universite de Montreal, DIRO Pavillon Andre-
Aisenstadt, CP 6128 succ Centre-Ville, Montreal, QC, H3C 3J7,
Canada, , Mamadou Thiongane, Pierre
L’Ecuyer
We propose two predictors to estimate the delay of customers in call centers or
similar service systems. The first method predicts the delay by extrapolating the
wait history of customers currently in queue. The second predictor uses an
exponential smoothing of the delays of past customers conditional to the queue
length. These predictors are attractive in practice because they are simple to
implement, they require very few parameters and basically no optimization.
3 - Designing Service Machine For Emergency Medical Services
Sreekanth V K, Research Scholar, Indian Institute of Technology
Kharagpur, Kharagpur, 721302, India,
, Ram Babu Roy, Paul M Lillrank
Service machine is a metaphorical concept used in Translational Systems Sciences
to explore the possibilities of applying machine design principles to the design of
service production systems. The design of a service machine needs to consider
several constraints arising from the nature of services: immateriality of the
offering, heterogeneity of demand, inseparability of the production process, and
perishability of resources. The customer behavior must be incorporated in the
design as the service value is realized through co-creation by customers and
producers. This research proposes an application of service machine concept for
designing emergency medical services in Indian context.
TD37