2016 INFORMS Annual Meeting Program

78 / 561

INFORMS Nashville – 2016
78
SC27
201A-MCC
Panel: Emerging Themes in Innovative Operations
Sponsored: Manufacturing & Service Oper Mgmt
Sponsored Session
Moderator: Nitin Joglekar, Boston University School of Management,
595 Comm Ave, Boston, MA, 02215, United States,
Co-Moderator: Stylianos Kavadias, University of Cambridge,
Trumpington Street, Cambridge, CB2 1AG, United Kingdom,
1 - Innovative Operations
Nitin Joglekar, Boston University School of Management,
We draw upon an expert panel to discuss emerging innovation research themes in
the manufacturing and service operations context by raising the following “when,
what and how” questions: (i) Are operations essential for creating innovation
(e.g. in terms of product and services)? (ii) Are operations essential to compete in
innovative ways (e.g. through business model innovations and/or through supply
chain innovations)? (iii) Are operations based innovations critical in establishing
new businesses (e.g. through entrepreneurship)?
2 - Panelist
Saif Benjaafar, University of Minnesota,
3 - Panelist
Raul Chao, University of Virginia,
4 - Panelist
Sanjiv Erat, University of California-San Diego,
5 - Panelist
Karan Girotra, INSEAD,
6 - Panelist
Guillaume Roels, UCLA,
7 - Panelist
Manuel Sosa, INSEAD,
SC28
201B-MCC
Empirical Research in Operations Management
Sponsored: Manufacturing & Service Oper Mgmt
Sponsored Session
Chair: Nathan C. Craig, Ohio State University, 630 Fisher Hall 2100 Neil
Avenue, Columbus, OH, 43210, United States,
1 - Dynamic Optimization Of Multichannel Advertising Campaigns In
An Online Advertising Supply Chain
Changseung Yoo, The University of Texas at Austin, Austin, TX,
United States, , Anitesh Barua, Genaro Gutierrez
We examine channel structures and pricing models in an online advertising
supply chain using a proprietary dataset. The supply chain consists of two
channels - a network and an exchange - from which an ad agency buys
advertising inventory and sells them to an advertiser. We design a nonlinear
Kalman filter to estimate an extension of the Sethi advertising model and derive
the optimal closed-loop strategies for the advertising agency. We then compare
them to the approximate solutions based on the Nerlove-Arrow model and derive
managerial insights. Our analyses furnish strong support for the synergy effects
between the channel structures due to strategic complementarities between the
channels.
2 - Variability In Labor Schedules: Effects On Store Performance And
Employee Turnover
Hyun Seok Lee, University of North Carolina at Chapel Hill,
Chapel Hill, NC, United States, Hyunseok_Lee@kenan-
Saravanan Kesavan, Camelia Kuhnen
Millions of employees face work schedules that are changed frequently by firms
trying to match labor to demand. Prior work has shown that unstable schedules
have negative consequences on worker life quality. Here, using detailed personnel
records from the retail industry, we find that variability in labor schedule
negatively affects store performance metrics such as sales, number of transactions,
and employee turnover.
3 - Reference Points In Replacement Purchases
Mahdi Mahmoudzadeh, Georgia Institute of Technology,
We study reference-points in replacement purchases, trade-ins and upgrades,
wherein customers replace their in-use product with its newer version. Through
an experimental study, we find that with trade-ins, irrespective of the new
version’s innovation level, the secondary market price is the reference-point.
With upgrades, however, depending on the innovation level and the
manufacturer’s decision on co-production of successive versions, the new
version’s price, the current selling price the old version, or the original price of the
old version is the reference-point. We also find that the manufacturer can always
frame a replacement purchase to induce the same reference-point as in buy-
backs.
4 - Rewarding Service And Serving Rewards: Strategic
Complications To Order Management
Somak Paul, Doctoral Student, The Ohio State University, 600
Fisher Hall, 2100 Neil Avenue, Columbus, OH, 43202, United
States, , Nathan C. Craig, Elliot Bendoly
We conduct laboratory experiments to identify how order complexities including
strategic-level factor relating to demand management affect the ordering behavior
of those in purchasing management roles and thus induce variation in upstream
orders. We further investigate how the backorder and surplus cost structure
moderates the relationship between the service-dependent demand and order
variation. We finally recommend strategic directions for the purchasing manager
and suggest personality traits to look for while choosing purchasing managers.
SC29
202A-MCC
MSOM Energy and Sustainability
Sponsored: Manufacturing & Service Oper Mgmt,
Sustainable Operations
Sponsored Session
Chair: Yangfang Zhou, Singapore Management University, Singapore,
Singapore,
1 - Strategic Forward Trading And Technology
Heikki Peura, London Business School, ,
Derek W Bunn
We analyze how operational factors of production, such as its flexibility and
reliability, can influence market prices indirectly through altering the balance of
spot and forward trading. As a result, increasing the capacity of intermittent
renewable electricity generation, despite its lower marginal cost, may not
necessarily reduce prices.
2 - Repositioning Operations In One-way Vehicle Sharing Systems
Long He, National University of Singapore,
Zhenyu Hu, Meilin Zhang
We study the repositioning problem in one-way vehicle sharing systems, in order
to balance the fleet and meet the demands. We formulate the problem as a
dynamic program and also discuss the optimal policy.
3 - Merchant Operations Of An Aluminium Smelter
Selvaprabu Nadarajah, College of Business, University of Illinois at
Chicago, Chicago, IL, United States, ,
Stein-Erik Fleten, Denis Mazieres, David Pisinger, Alessio Trivella
Motivated by an Aluminium producer, we consider the merchant operations of a
smelter facing predictable Aluminium demand and volatile electricity prices. This
smelter endows a merchant with flexibility to (i) choose between the production,
mothballs, and shutdown operating states; and (ii) procure electricity needed for
operations using forward contracts with different maturities and underlying
currencies. We formulate the management of these flexibilities as a stochastic
optimization problem. We overcome the intractability in computing optimal
operating and sourcing policies by combining least squares Monte Carlo with
stochastic programming. Preliminary findings will be discussed.
SC27