2016 INFORMS Annual Meeting Program

53 / 561

INFORMS Nashville – 2016
53
3 - When The Bank Comes To You: Branch Network And Custsomer
Multi-channel Banking Behavior
Vibhanshu Abhishek, CMU,
Beibei Li, Dan Geng
Customers today increasingly interact with their banks using digital channels,
lifting the necessity for banks to rethink the distribution of physical branches and
customer behavior in a multi-channel environment. Using approximately 1.2M
anonymized individual-level data from a large commercial bank in US over 6
years, our paper investigates the traditional channel - bank branches - and the
impact of its network change (branch opening or closure) on customer multi-
channel preferences and other banking behavior.
SB30
202B-MCC
Social and Environmental Considerations in Retailing
Sponsored: Manufacturing & Service Oper Mgmt
Sponsored Session
Chair: Xiajun Amy Pan, University of Florida, Gainesville, FL,
United States,
Co-Chair: Dorothee Honhon, University of Texas at Dallas, Richardson,
TX, United States,
1 - Social Labeling: Leaderboard Or Threshold Policy?
Xiajun Amy Pan, University of Florida,
, Quan Zheng, Asoo Vakharia
Labeling, as a way to certify corporate social performance, is widely adopted in
practice. However, little attention has been paid to the endogenous choice of a
labeling policy. Should the label be awarded to manufacturers based on absolute
performance (threshold policy) or relative performance (leaderboard policy)? We
address this question through a mechanism design perspective. Our findings are
that an impact-motivated third-party organization should confer the label on the
best manufacturer provided it meets a threshold. On the other hand, a profit-
maximizing retailer should select a certain number of manufacturers who
outperform the others in the set without setting a threshold.
2 - The Impact Of Supply Chain Contracts On Inventory Shrinkage:
Inference From Packaged Food Products
Min Choi, Arizona State University,
Elliot Rabinovich, Timothy Richards
This paper examines the effect of supply chain contracts on inventory shrinkage
using a data set from a packaged bakery manufacturer in the U.S. We find that
the amount of inventory shrinkage tends to be higher under scan-based (SBT)
contracts compared to vendor-managed inventory (VMI) contracts when
measured in terms of both explicit and non-explicit shrink. We attribute this
effect to retailers’ moral hazard under SBT contracts. Our findings highlight a
potential loss in efficiency in food supply chains reflected in higher inventory
shrinkage under SBT contracts. Our study calls for a careful reexamination of
emerging contractual forms in light of their potential impact on inventory waste.
3 - Online Grocery Retail: Revenue Models And
Environmental Impact
Elena Belavina, The University of Chicago, ?, chicago, IN, 6,
United States,
We compare the financial and environmental performance of two revenue
models for the online retailing of groceries: the per-order and the subscription
model. We find that subscription incentivizes smaller and more frequent orders,
which reduces food waste and results in higher retailer revenues. These
advantages are countered by greater delivery-related travel and expenses.
Subscription leads to lower food waste-related emissions but to higher delivery-
related emissions. Geographic and demographic data indicate that the
subscription model is almost always environmentally preferable because lower
food waste emissions dominate higher delivery emissions.
4 - Incorporating Consumer Attitudes To Minimise Waste And
Out-of-stock Situations In Food Retail
Emel Aktas, Senior Lecturer, Cranfield University, Cranfield,
United Kingdom,
Soroosh Saghiri, Zeynep Topaloglu, Tamara van ‘t Wout,
Akunna Oledinma, Zahir Irani, Amir Sharif, A. K. Samsul Huda
Inventory management of perishable food products is not straightforward since
the demand volatility for these products is usually high. Consumer behavior is
influenced by many factors, particularly the product availability and the expiry
date of the product. Product inventory is to meet the customer demand and due
to short shelf life it cannot act as a buffer against demand fluctuations. We study
the optimal inventory policies to minimize food waste and stock-out situations
based on the expiry dates and consumer preferences. Implications for the
environment follow from reduced food waste.
SB31
202C-MCC
Empirical Research in Supply Networks
Sponsored: Manufacturing & Service Oper Mgmt, iFORM
Sponsored Session
Chair: Vishal Gaur, Cornell University, 321 Sage Hall, Ithaca, NY,
14850, United States,
Co-Chair: Yasin Alan, Vanderbilt University - Owen Graduate School of
Management, 401 21st Avenue South, Nashville, TN, 37203,
United States,
1 - Evolution Of Supply Networks
Nikolay Osadchiy, Emory University,
Vishal Gaur, Maximiliano Udenio
Using a large panel of firm-level buyer-supplier relationships, we study evolution
of supply networks over time.
2 - Inaccurate Durations And Supply Chain Disruptions
William Schmidt, Cornell University,
Mili Mehrotra
We use supply chain and production data from a division of a Fortune 500
multinational manufacturer to examine the operational performance impact of
inaccurate supply chain disruption duration estimates. We find that such
inaccuracies can materially increase the cost of the disruption. This effect (1)
persists after controlling for the actual length of a disruption and (2) can occur
regardless of whether the disruption duration is initially over-estimated or under-
estimated. We identify several factors that contribute to the impact of inaccurate
estimates.
3 - Using Delay Forecasting To Correct Airline Turn
Time Misallocation
Yannis Stamatopoulos, McCombs School of Business, Austin, TX,
United States, Jun Li,
Carlos Carvalho
Achieving good on time performance (OTP) is a challenging task for airlines. At
the center of this challenge is the tradeoff between utilization and resilience. For
example, longer turn times increase network resilience by reducing propagated
flight delay, but at the same time keep airplanes away from flying and generating
revenues. In this work, using proprietary data from a large US airline, we
examine how an airline can manage turn times smartly from a network
perspective. We find evidence for a potential significant improvement in OTP
without hurting revenues.
4 - Shock Propagation In Supply Chain Networks
Jing Wu, University of Chicago,
Firms do not exist in isolation but are linked to each other through supply chain
relationships. How do firm-level information transmits in the supply chain
networks empirically? In this talk, we show both average shock propagation as
reflected in stock returns, and extreme shock propagation as reflected in credit
default swaps. The results are supported by supply chain theory and also have
practical value in investment.
SB32
203A-MCC
Scheduling II
Contributed Session
Chair: Mauricio G. C. Resende, , Inc., 2483 Birch Ave N,
#512, Seattle, WA, 98109, United States,
1 - Online Lazy Bureaucrat Scheduling With A Machine Deadline
Ling Gai, Shanghai University, Shanghai, 201444, China,
The lazy bureaucrat scheduling problem was first introduced by
Arkin et al. in 1999. Since then, a number of variants have been
addressed. However, very little is known on the online version. In
this note we focus on the scenario of online scheduling, in which the
jobs arrive over time. The bureaucrat (machine) has a working time
interval. Namely, he has a deadline by which all scheduled jobs must
be completed. A decision is only based on released jobs without any
information on the future. We consider two objective functions of
[min-makespan] and [min-time-spent]. Both admit best possible online
algorithms with competitive ratio of 1.618.
SB32