2016 INFORMS Annual Meeting Program

INFORMS Nashville – 2016

502

WE59

Cumberland 1- Omni

Supply Chain Networks Design under Uncertainty

Sponsored Session

Chair: Brett Shields, UTSI, 411 B.H. Goethert Parkway, Tullahoma, TN,

1, United States,

bshields@utsi.edu

1 - A Classification For Collaborative Logistics State Of The Art

Analysis

Andrea Rusich, Univeristy of Trieste,

Andrea.Rusich@phd.units.it

Scientific literature on collaborative logistics still misses a harmonized approach to

analyse its management implications. This paper aims to fill this gap by

introducing a classification canvas based on four perspectives: decision-makers,

form of collaboration, ICT and decision technology enablers, operations

management. The proposed analysis enhances the understanding of existing

collaborative logistics approaches and identifies further research steps. In addition,

an application example to the Physical Internet shows how the classification

could support the study of emerging collaborative logistics frameworks.

2 - Vehicle Routing Problem In Collaborative Environments:

Introducing An Exchange Mechanism For Orders.

Vincent Karels, TUE,

v.c.g.karels@tue.nl

Considering the distribution of orders, we introduce a system that exchanges

orders in such a way that cooperating distribution companies maintain their

competitiveness and autonomy while also decreasing their costs. First an

instrument is formulated which determines the marginal costs of any order

within the vehicle routing problem, while retaining that the calculations remain

computationally tractable. Subsequently an auctioning mechanism utilizing this

instrument is introduced, and the measure to which this mechanism evolves to

the best allocation of orders (the social optimum) is evaluated.

3 - Fair Sharing Approach For Network-wide Adoption Of

Collaborative Container Logistics

Rob A Zuidwijk, Professor of Ports in Global Networks, Erasmus

University Rotterdam, P.O. Box 1738, Rotterdam, 3000 DR,

Netherlands,

rzuidwijk@rsm.nl,

Irina Romochkina,

Peter van Baalen

This paper draws from cooperative game theory while studying fair sharing

schemes and is inspired by actual issues in the adoption of Inter-Organizational

Systems (IOS) in container logistics in a sea port environment. We demonstrate

(1) the influence that network effect, as experienced in business network

communication structure and propensity for coordination between players, has

on the chances of an IOS to be fully adopted by a business network under fair

sharing conditions, and (2) that a fair sharing scheme has the potential to

eliminate two types of conflicts related to uneven benefits distribution and

through this enhance IOS adoption under certain conditions.”

4 - A Stochastic Make Or Buy Model Considering Additive

Manufacturing In Supply Chain

Brett Shields, University of Tennessee Knoxville, 411 B.H.

Goethert Parkway, Tullahoma, TN, United States,

bshields@utsi.edu,

Javad Seif, Andrew Yu

In this project a two-stage stochastic program is presented in a make or buy

setting, considering the supply of parts produced by additive manufacturing. This

model generalizes a number of works in the literature and provides a framework

for implementing additive manufacturing in supply chain during times of

uncertainty.

WE61

Cumberland 3- Omni

Facility Location

Contributed Session

Chair: Zhaomiao Guo, Universtiy of California, Davis, 609 Anderson

Road,, Apt. 264, Davis, CA, 95616, United States,

zmguo@ucdavis.edu

1 - Service Network Design With Equilibrium Constraints Based On

General M/g/1 Waiting Time

Mahdi Hamzeei, Post Doctoral Fellow, University of Maryland,

Baltimore, 685 West Baltimore Street, MSTF 7-00D, Baltimore,

MD, 21201, United States,

hamzeei.m@gmail.com,

Amir Ahmadi Javid

We consider the service network design in which an operator determines some

facilities and their size to open. The customers then choose facilities to send their

demand such that their time is minimized. Customers’ time consists of a travel

and a waiting time. Assuming M/G/1 waiting time in each facility, using

conjugate duality and decomposition approaches, we propose and efficient

method to solve this problem. This structure was motivated by several

applications such as preventive healthcare and disaster management. We

conclude by presenting preliminary numerical results.

2 - Service Level Restrictions In Location Problems With

Disproportionate Assignment Costs

Jeremy W North, Murray State University, 9400 Wickliffe Rd.,

Wickliffe, KY, 42087, United States,

jnorth@murraystate.edu

Robert M Nauss

A common assumption in facility location modeling is that customer assignment

cost is proportional to distance. In this work, we drop this assumption and

analyze the subsequent effect on service level when weighted average distance is

minimized. Computational experiments contrast the p-median with an

augmented version enforcing higher overall service levels. We show that our

modeling approach is more economical than implementing a closest assignment

restriction. Additionally, a Greedy Random Adaptive Search Procedures (GRASP)

algorithm is applied to solve larger problem instances.

3 - A Continuum Approximation Method For Reliable Facility

Location Design With Imperfect Information

Hongqiang Fan, University of South Florida, Tampa, FL,

United States,

hongqiangfan@mail.usf.edu

, Xiaopeng Li, Lifen Yun

In this paper, we propose a continuum approximation method to solve the

reliable facility location design problem with imperfect information. Then a

discrete algorithm is proposed to obtain discrete facility locations. The results of

case studies indicate that this model also can get the near-optimal solution

compared with the discrete model and has a robust performance.

4 - Facility Location In A Competitive Market: Incorporating Network

Congestion Effects

Zhaomiao Guo, Universtiy of California, Davis, 609 Anderson

Road,, Apt. 264, Davis, CA, 95616, United States,

zmguo@ucdavis.edu

, Yueyue Fan

We assess facility networks in a competitive market, where the infrastructure

system is shaped by collective actions of multiple decision entities from both

supply and demand sides. A network-based multi-agent optimization modeling

framework is developed to reflect “selfish” behaviors of individual service

investors and users and to simultaneously capture the interactions among all over

a network structure. To overcome computational difficulty imposed by non-

convexity of the problem, we rely on recent theoretical development on

variational convergence of bivariate functions to design a solution algorithm with

analysis on its convergence properties.

WE59