2016 INFORMS Annual Meeting Program

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INFORMS Nashville – 2016
37
SA57
Music Row 5- Omni
Topics in Behavioral Operations Management
Sponsored: Behavioral Operations Management
Sponsored Session
Chair: Ruth Beer, Indiana University, Kelley School of Business,
Bloomington, IN, United States,
1 - An Experimental Investigation Of Managing Quality Through
Monetary And Relational Incentives
Andrew M. Davis, Cornell University, ,
Kyle Hyndman
We investigate indirect and direct incentives for managing the quality of a product
in a two-tier supply chain. In our study, a retailer pays a supplier for a product,
where the supplier can choose to exert high effort, which is costly but guarantees
high quality, or low effort, which does not assure high quality. We consider
scenarios where the retailer pays the supplier a fixed fee, or a combination of a
fixed fee and conditional bonus, which is only paid to the supplier when high
quality is received. We evaluate these scenarios in both one-shot and repeated
environments and find that different incentives can significantly influence the
quality of a product.
2 - The Supplier’s Dilemma: Buyback Contracts In A
Competitive Setting
Anna Devlin, University of Alabama in Huntsville,
This research studies the performance of buyback (BB) and wholesale price (WP)
contracts when a single newsvendor retailer purchases products from two
suppliers competing for retailer effort. We determine that a profit-maximizing
retailer’s effort allocation differs by contract pair offered by the suppliers,
impacting supplier profits and equilibrium decisions. If demand uncertainty is low
the difference in retailer effort across contract pairs minimally impacts profits and
both suppliers offer BB contracts in equilibrium. However if demand uncertainty
is high this effort allocation disparity creates a “prisoner’s dilemma” for the
suppliers and both will offer WP contracts in equilibrium.
3 - Stagnant Leader Or Fast Improver? The Impact Of Transparency
On Consumers’ Purchase Behavior
Yanchong Zheng, Massachusetts Institute of Technology,
Ryan Buell, Shwetha Mariadassou
We study how consumers’ purchase behavior may be influenced by a company’s
information transparency in its sustainability performance. We consider
interaction between transparency and two types of information: current
performance level and changes in performance. Our results yield important
insights about a company’s transparency strategy in the marketplace.
4 - How Negotiatons Improve Performance In The Buyback Contract
Elena Katok, University of Texas at Dallas, 800 W. Campbell Rd.,
Jindal School of Management (SM30), Richardson, TX, 75080,
United States, , Michael Becker-Peth,
Ulrich Thonemann
We conduct a lab experiment to analyze how negotiations affect performance of a
buyback contract. We show that adding a negotiation phase in a human-human
setting improves performance significantly if negotiation agreements are reached.
These Agreements result in almost full SC efficiency (0.97) and the profit split is
fairly equal (0.54 to 0.46). We analyze the underlying drivers of successful
negotiations which are both, personal and procedural.
SA58
Music Row 6- Omni
Energy I
Contributed Session
Chair: Arnab Roy, PhD Student, University of Louisville,
2719 South 4th Street, Apt. #2, Louisville, KY, 40208, United States,
1 - Modeling The North American NGL Market In A Low Oil And Gas
Price Environment
Robert Brooks, Founder, RBAC Inc, 14930 Ventura Boulevard,
Suite 210, Sherman Oaks, CA, 91403, United States,
The last decade’s “shale gas revolution” recreated the US natural gas and oil
industry. It also revitalized the natural gas liquids business and promised to do the
same for petrochemicals. But runaway production combined with slowed demand
growth has resulted in a collapse of prices for all of these commodities world-
wide. How can one make rational predictions about the future of the North
American NGL market under these conditions? NGL-NA is a model of the North
American market for natural gas liquids. The presentation will describe the model
and results from recently run scenarios.
2 - Fuel Procurement Strategy With Inventory Consideration For
Electric Power Utilities
Chung-Hsiao Wang, LG&E and KU, 102 Spruce Lane, Louisville,
KY, 40207-1701, United States, ,
K Jo Min
In recent years, natural gas combined cycle power plants have started to replace
aging and less efficient coal power plants. Furthermore, due to cheap natural gas
prices, economic dispatching has resulted in high coal inventory levels. Under
these circumstances, in this paper, we develop mathematical models for
structured and analytical guidelines on fuel procurement strategies for a utility
owning both natural gas and coal generation units.
3 - Modeling And Analysis Of Remote, Off-grid Microgrids
Sreenath Chalil Madathil, Doctoral Candidate, Clemson University,
110 Freeman Hall, Clemson, SC, 29634, United States,
, Emre Yamangil, Harsha Nagarajan,
Arthur K Barnes, Russell Bent, Scott Backhaus, Scott J. Mason,
Salman Mashayekh, Michael Stadler
We develop a mixed-integer, quadratically-constrained quadratic program for
minimizing total installation and operation costs of remote off-grid microgrids
with renewable and non-renewable energy sources under N-1 contingencies and
one day time horizon. We compare various relaxations for this NP-Hard problem
and present efficient decomposition algorithms for our problem. We model the
nonlinear efficiency curves associated with these devices using a piecewise linear
approximations and demonstrate the efficiency of proposed relaxation and
decomposition methods using benchmark test problems.
4 - An Empirical Study On A Demand Response Program With
Battery Storage Systems
Arnab Roy, PhD Student, University of Louisville, 2719 South 4th
Street, Apt. #2, Louisville, KY, 40208, United States,
, Prajwal Khadgi, Lihui Bai
Demand response (DR) in smart grid aims to reduce peak load, thus the needs for
ancillary services in generation. On the other hand, any DR programs must be
implemented with incentives to ensure consumers’ active engagement. In this
paper, we investigate the effects of the DR implementation measures by one
utility company on the load consumption of approximately 300 homes. The DR
measures include the introduction of an innovative residential rate structure,
direct load control, installation of efficient heat pump water heaters, and reliable
utility-grade power storage systems.
SA59
Cumberland 1- Omni
Electrification in Transportation
Sponsored: Transportation Science & Logistics
Sponsored Session
Chair: Mohammad Esmaeil Khodayar, Southern Methodist University,
6425 Boaz Lane, Dallas, TX, 75205, United States,
1 - Network Design For In-motion Wireless Charging Of Electric
Vehicles In Urban Areas
Mamdouh Mubarak, Southern Methodist University,
, Halit Uster, Khaled Abdelghany,
Mohammad Esmaeil Khodayar
We present a model to optimize the location and power capacity of in-motion
electric charging stations. We formulate the problem as a MIP and we propose a
Benders-decomposition-based algorithm to solve it efficiently. We present the
computational results of testing the algorithm on large-scale grid networks.
2 - Deployment Of Stationary And Dynamic Charging Infrastructure
For Electric Vehicles Along Traffic Corridors
Zhibin Chen, University of Florida, Gainesville, FL, United States,
, Yafeng Yin, Wei Liu
This paper optimizes a deployment plan of dynamic and stationary charging
facilities along a traffic corridor to serve the charging need of electric vehicles with
the minimum social cost. The deployment plan will specify the number of
charging stations, the number of chargers installed at each station, the lengths of
dynamic charging lanes, and charging prices of charging stations and lanes.
SA59