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INFORMS Nashville – 2016
449
3 - Revenue Management In Synchromodal Container Transportation
Rommert Dekker, Professor of Quantitative Logistics, Erasmus
University-Rotterdam, Burg. Oudlaan 50, Po Box 1738,
Rotterdam, 3000 DR, Netherlands,
rdekker@ese.eur.nl,
Bart Riessen
In order to obtain a balanced cargo load in time, booking classes are introduced
for hinterland intermodal container transport. We consider the case of two classes
and two destinations. The first class of containers is transported the same day,
while the second class can be delayed one day. We use daily booking limits to
control the demand for both classes, while demand outside the classes is trucked
to the destination which is more expensive. Using Markov chains we determine
expected costs for each pair of limits and determine the optimal ones. We show
the application of the model using a real case.
4 - Loss Aversion And Subsidy Design In Bot Road Projects
Yiwen Zhang, Tianjin University, 92 Weijin Rd, Nankai District,
Tianjin, P.R., 300072, China,
zhangyiwen@tju.edu.cn,
Shuibo Zhang, Zhuo Feng
Government subsidy plays an important role in attracting private investors in
BOT projects. Previous studies only consider the material surplus of the
government and the private sector with their psychological losses ignored. As a
result, an inappropriate subsidy design may be proposed that prevents efficient
renegotiation afterwards. In this paper, by taking the initial subsidy design as the
reference point and considering loss aversion of both the government and the
private sector, we investigate the optimal government subsidy to maximize social
surplus in the whole concession period. This project provides decision support for
the government in designing the optimal government subsidy.
5 - Optimizing Daily Service Routes For Major Grocery Chains
Luis J. Novoa, The George Washington University, 2201 G Street,
NW, Funger Hall, Washington, DC, 20052, United States,
ljnovoa@gwu.edu,Ahmad I Jarrah, Jonathan F Bard, Sifeng Lin,
Xinhui Zhang
We develop a customized column generation algorithm to solve industrial-scale
instances of a retail route design problem. This problem extends the capacitated
vehicle routing problem with time windows by including order loading
constraints, order-dependent vehicle capacity, material handling at the
warehouse, time limits and idle time costing. Routes are iteratively generated by
solving parallel dynamic programs which implement novel efficiency procedures.
Considerable cost reductions are found when evaluating against current solutions
from a major grocery chain.
WC71
Electric- Omni
Game Theory III
Contributed Session
Chair: Ying Zhang, University of North Carolina-Chapel Hill, 116 Saint
Andrews Ln., Chapel Hill, NC, 27517, United States,
Ying_Zhang@kenan-flagler.unc.edu1 - Applicability Of The Proportional Nucleolus In Cooperative Games
Based Highway Cost Allocation
Saurav Kumar Dubey, PhD Student, University of Tennessee,
1615 Laurel Avenue, Box 203, Knoxville, TN, 37916,
United States,
skumardu@vols.utk.edu,Alberto Garcia-Diaz
A highway cost allocation (HCA) problem is formulated as a Least-Core model
with Aumann-Shapley Values defining the characteristic function of the game.
For such a game, the nucleolus offers a unique and stable solution. However, the
nucleolus concept is non-monotonic because any marginal increase in total
highway cost is distributed unevenly among vehicle classes. A derivative of the
least-core model, known as Proportional Nucleolus, and known to be unique and
monotonic will be considered.
2 - Locating Warehouse In An Emerging Country A
Win Win Proposition
Ying Zhang, University of North Carolina-Chapel Hill,
116 Saint Andrews Ln., Chapel Hill, NC, 27517, United States,
Ying_Zhang@kenan-flagler.unc.edu, Jayashankar M Swaminathan
We investigate the trend of warehouse outsourcing in offshore business where a
retailer in a developed country sources from a supplier in an emerging country.
The retailer can deliver products directly to the developed country or use a
warehouse in the emerging country to hold second-tier safety stock. The supplier
and the retailer negotiate over the wholesale price and batch size conditional on
the retailer’s warehouse outsourcing decision. We explore when the retailer
prefers the emerging-country warehouse and show that the emerging-country
warehouse can be beneficial even without cost advantage.
WC72
Bass- Omni
Supply Chain Mgt XV
Contributed Session
Chair: Ping Su, Assistant Professor, Hofstra University, Frank Zarb
School of Business, Hofstra University, Hempstead, NY, 11549,
United States,
Ping.Su@hofstra.edu1 - Towards Supply Chain Information Flow Theory
Abdurrezzak Sener, PhD Student, Wichita State University,
1845 Fairmount St, Wichita, KS, 67260, United States,
axsener@wichita.edu, Mehmet Barut, Mehmet B Yildirim
Information sharing and coupling have been interest of researchers for decades.
Empirical studies focused to understand the impact of information sharing to
operational and organizational performance. A few studies focused on developing
integration matrices to measure coupling. In this study we are taking initiative
steps towards developing information flow theory.
2 - Debt Financing And Supply Chain Competition
Ping Su, Assistant Professor, Hofstra University, Frank Zarb School
of Business, Hofstra University, Hempstead, NY, 11549,
United States,
Ping.Su@hofstra.edu,Joice (Qiaohai) Hu
Existing literature has concluded that debt financing causes two firms that engage
in a Cournot game to compete more aggressively, each expanding its product
supply level. However, both firms are worse off than if they are purely equity
financed, resulting in the so-called prisoner’s dilemma. Introducing two supply
chain structures, distributional and parallel, we examine whether this prisoner
dilemma persists if the firms’ upstream could influence their competition. We find
that the answer is positive because the upstream benefits from the intensified
downstream competition. Moreover, the supply expansion effect varies in
different supply chain structures.
WC73
Legends A- Omni
Operations Management VII
Contributed Session
1 - Seller Response To Customer-driven Substitution
Secil Savasaneril, Associate Professor, Middle East Technical
University, Orta Dogu Teknik Universitesi End. Muhendisligi,
Dumlupinar Bulvari No:1, Dumlupinar Bulvari No:1, 06800,
Turkey,
ssecil@metu.edu.tr,Nursen Tore
We study how seller (producer or retailer) sets inventory and price in the
presence of customer driven substitution. We assume the seller can affect the
substitution behavior by price and availability of the products. Demand for each
product is stochastic, and spills over due to cross-price effects. If one product
stocks out then this also results in spillovers to the other product. The products
are sold in two periods, where in the second, seller may markdown price to
exploit stockout based substitution. We determine optimal stock levels, initial and
markdown prices. Then, through numerical analysis, we quantify the value of
exploiting price- and stockout-based substitution.
2 - Mechanism Design With Heterogeneous Agent Demand Profiles:
Applications To Carbon Capture And Storage(ccs)
Wenbo (Selina) Cai, New Jersey Institute of Tech, Mec 308,
University Heights, Newark, NJ, 07102, United States,
cai@njit.edu,Dashi Singham
Classic mechanism design problems optimize contracts offered to different types
of agents, where the agents have private information on some of their
characteristics, such as demand. We consider heterogenous agent demand
distribution profiles and apply our results to analyzing contracts for carbon
capture and storage systems, where the demand of emissions sources for
transporting and storing carbon varies based on the type of emitter, and each type
having its own distribution of emissions month to month.
WC73