Informs Annual Meeting Phoenix 2018

INFORMS Phoenix – 2018

MB16

n MB16 North Bldg 127B Joint Session MSOM/Practice Curated: Renewable Energy Operations Sponsored: Manufacturing & Service Oper Mgmt/Sustainable Operations Sponsored Session Chair: Nur Sunar, UNC, Chapel Hill, NC, 27517, United States 1 - Pricing and Information in Short-term Sequential Power Markets with Renewable Energy Derck Koolen, Erasmus University-Rotterdam, Rotterdam, 3062PA, Netherlands, Derek W. Bunn Motivated by the ongoing integration of renewable energy sources, we analyze sequential pricing in short-term power markets with a varying technology mix. We propose a multi-stage competitive equilibrium model to analyze retailers and heterogeneous producers’ optimal sequential trading, allowing to capture the information transparency effect of large-scale and decentralized production on individual market participants’ risk related hedging pressure. Empirical results, comparing the British and Californian market, validate the approach with respect Sheng Liu, University of California, Berkeley, 1731 Spruce St Unit B, Berkeley, CA, 94709, United States, Zuo-Jun Max Shen, Xiang Ji We develop a bike lane planning model based on the bike trajectory data. We formulate the bike lane planning problem as an integer program to maximize the coverage of cyclists as well as the continuity of bike lanes. We develop a Lagrangian relaxation method to solve the model efficiently by exploiting its structure. We apply the model to Zhuhai city of China using the real trajectory data from a dock-less bike sharing system. The construction plan of our model can benefit tens of thousands of cyclists in Zhuhai and promote cycling as a healthy and sustainable transit mode. We collabrate with the urban planning institution of Zhuhai to implement the model. 3 - Capacity Investment in Wind Farms: The Role of Subsidy Policies Foad Iravani, University of Washington, Foster School of Business, ISOM Department, Box 353226, Seattle, WA, 98195-3226, United States, Saed Alizamir, Safak Yucel The U.S. government offers output-based and cost-based subsidies to promote investment in wind farms. We analyze the decision of wind farms to choose one of the two subsidies and study the effect of subsidies on the farms’ capacity decisions. 4 - Meeting Corporate Renewable Energy Targets Selvaprabu Nadarajah, College of Business, University of Illinois at Chicago, 601 South Morgan Street,, UH 2406, Chicago, IL, 60607, United States, Danial Mohseni-Taheri, Alessio Trivella Several companies have committed to procuring a percentage of their power demand from renewable sources by a future date. We study the dynamic procurement problem to meet this target by purchasing power via virtual power purchase agreements (PPA) and the wholesale spot market, which are two dominant strategies. We analyze the change in procurement cost under different target levels and PPA strike price structures used in practice, as well as, characterize substitution between the strike price and the target level. To assist in computing multi-stage procurement portfolios, we develop a dual reoptimization based approximate dynamic programming policy and present results on realistic instances. 5 - Implications of Independent Renewable Power Producers for Utility Companies Nur Sunar, UNC, 1604 Village Crossing Drive, Chapel Hill, NC, 27517, United States, Jayashankar M. Swaminathan It is widely believed that the existence of independent renewable power producers hurts the profitability of utility companies. We identify a prevalent practical setting in which the existence of independent renewable energy producers increases the profitability of utilities. We complement our results with data analysis. to market specific exogenous operational constraints. 2 - Smart Bike Lanes: A Data-driven Approach

n MB17 North Bldg 127C SCM SIG Special Session: Emerging Topics in Supply Chain Management Sponsored: Manufacturing & Service Oper Mgmt/Supply Chain Sponsored Session Chair: Lauren Xiaoyuan Lu, University of North Carolina at Chapel Hill, Kenan Flagler, Chapel Hill, NC, 27599, United States Co-Chair: Guoming Lai, Austin, TX, 78712, United States 1 - Industry 4.0 Brian Tomlin, Tuck School of Business, Dartmouth College, 100 Tuck Hall, Hanover, NH, 03755-9000, United States In this talk I will discuss Industry 4.0 (sometimes referred to as the 4th industrial revolution) and briefly highlight research opportunities and challenges relevant to the operations management community. 2 - Responsible Operations: Challenges and Opportunities Jayashankar M. Swaminathan, University of North Carolina Chapel Hill, Kenan-Flagler Business School, Operations, Chapel Hill, NC, 27599-3490, United States In this talk I will discuss about the key opportunities for OM researchers in the area of responsible operations. I will also discuss some of the challenges associated with doing such research. 3 - Agriculture 4.0 Tava Olsen, University of Auckland, ISOM, Business School, University of Auckland, Auckland, 1142, New Zealand Agriculture is changing in many ways. This talk gives an overview of these changes, with a particular focus on agricultural supply chains. In particular, we discuss agricultural cooperatives and how they shift the power in the supply chain. We will also discuss new agricultural technologies and precision agriculture. n MB18 North Bldg 128A Joint Session JPS/Practice: Industry Job Search Panel Emerging Topic: INFORMS Career Center Emerging Topic Session Chair: Warren Hearnes, Cardlytics, 4061 Water Oak Terrace SW, Lilburn, GA, 30047-7417, United States 1 - Industry Job Search Panel Warren Hearnes, Cardlytics, 4061 Water Oak Terrace SW, Lilburn, GA, 30047-7417, United States This panel discusses the industry interview process and do’s and don’ts associated with the job search. In addition to comment from current and former recruiters, time will be provided for questions and answers. n MB19 North Bldg 128B New Models for Assortment Planning and Pricing Sponsored: Revenue Management & Pricing Sponsored Session Chair: Sumit Kunnumkal, Queen’s University, Smith School of Business, Kingston, ON, Canada 1 - Assortment Optimization for a Multi-stage Choice Model Zizhuo Wang, University of Minnesota, 1009 5th Street SE, Minneapolis, MN, 55414, United States, Yunzong Xu Motivated by a practical selling scenario that requires previous purchases to unlock future options, we consider a multi-stage assortment optimization problem, where the seller makes sequential assortment decisions with commitment, and the customer makes sequential choices to maximize her expected utility. We show that this problem is polynomial-time solvable when the customer is fully myopic or fully forward-looking. The optimal policy entails that the assortment in each stage is revenue ordered and a product with higher revenue always lead to a wider range of future choices. We also show that the problem is NP-hard in general and give precise/approximation algorithms for various scenarios.

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