Conference Agenda

Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).

 
Only Sessions at Location/Venue 
 
 
Session Overview
Location: Mont Royal I
4th floor
Date: Sunday, 25/June/2023
SA 8:00-9:30SA10 - SP1: Snap Presentation: Decision making for social benefits
Location: Mont Royal I
 

To err is human: a field experiment in nudging doctors away from prescribing drug-to-drug interactions

Xiaodan Shao, Vivek Choudhary

Nanyang Business School, NTU, Singapore

Drug-drug interactions (DDI) are common medical errors due to the negative interaction of medicines taken by a patient. up to 96% instances, doctors ignore the even the mandatory DDI alerts, leading to adverse reactions and poor health outcomes. To solve this issue, we collaborated with a large health-tech firm in India, which conducted a field experiment to identify the impact of real-time information nudges on DDIs. We find that nudges not only reduce DDIs by 8.7% but also promotes learning.



Optimal scheduling of a multi-Clinic healthcare facility in the course of a pandemic

Hossein Piri1, Mahesh Nagarajan2, Steven Shechter2

1University of Calgary, Canada; 2University of British Columbia, Canada

Due to social distancing requirements during the Covid-19 pandemic, the capacity of elevators in high-rise buildings has been reduced by 50-70%. This reduction in capacity has led to queue build-ups, making it difficult to maintain social distancing in the lobby and increasing the risk of disease transmission.

The objective of this work is to minimize elevator wait times in a multi-clinic facility by optimizing the clinic scheduling.

 
SB 10:00-11:30SB10 - SP2: Snap Presentation: Retail and manufacturing operations
Location: Mont Royal I
 

Impact of policy risks on regulatory inspection outcomes and quality performance of manufacturing operations

Abhay Kumar Grover, Adams Steven

University of Maryland, United States of America

Research suggests that the regulatory inspection outcomes are influenced by factors unrelated to non-conformance. One of the reasons is shift in the U.S. political geography every two years which exposes firms to differential policy risks. We use political alignment to empirically uncover the impact of time-varying policy risks on quality performance (recalls) of food operations via regulatory inspection outcomes. We identify firm-level strategies to mitigate it and make policy recommendations.



A choice among multiple contests

Lior Fink1, Sharon Rabinovitch1, Ella Segev2

1Ben-Gurion University of the Negev, Israel; 2Hebrew University of Jerusalem, Israel

In a contest, participants exert effort to win the a prize. The cost of their effort is irreversible. Most of the research on contests has treated a contest as an isolated event. However, in many real-life situations, we choose among several contests that are going on in parallel. We combine theoretical and empirical question to address the following questions: How does an individual choose among contests and how does the existence of multiple alternative contests affect her behavior?



The effects of CSR performance and price on consumer purchase decisions: A moderated mediation analysis

Junhao {Vincent} Yu, Tim Kraft, Robert Handfield, Rejaul Hasan, Marguerite Moore

North Carolina State University, United States of America

New apparel brands have emerged that offer sustainable fashion at affordable prices. Designing an effective CSR disclosure strategy for affordable apparel presents new challenges, as the literature has shown that consumers often equate low prices with low quality. We use an experiment in an online purchase context to examine the mechanisms behind consumers' valuations of such CSR disclosures and how price-related factors (retail price, historical price paid) moderate these indirect effects.



“Be the Buyer” – Leveraging the Wisdom of the Crowd in Fashion E-Commerce Operations

Leela Nageswaran, Yu Kan, Uttara Ananthakrishnan

University of Washington, United States of America

We study a new business practice of “crowdsourcing buying” wherein a retailer first seeks input from customers on the desirability of a product and then bases their purchasing decision on their votes. We collaborate with an apparel rental platform and analyze a dataset comprised of the platform’s products and users. We find that the initiation of the service improves both conversion rate and the number of turns. We also investigate several potential mechanisms that drive this improvement.



Is warehouse club business model resilient to digital competition? The role of retail agglomeration

Xiaodan Pan1, Martin E. Dresner2, Guang Li3, Benny Mantin4

1Concordia University; 2University of Maryland; 3Queen’s University; 4University of Luxembourg

We show that WCs can improve their resilience to digital competition by making strategic retail location decisions. We find that ecommerce intensity in a geographic market negatively impacts Costco foot traffic in the same market. However, the location matters. Specifically, locating WCs in a “low agglomeration” area, distant from competing WCs and grocery stores, not only contributes to increased foot traffic but also has the potential to offset the negative impact from ecommerce competition.

 
SC 13:00-14:30SC10 - SP3: Snap Presentation: Data-driven methods
Location: Mont Royal I
 

Collusion by Data-Driven Algorithms and its Impact on Supply Chain Performance

Xiaoyue Yan, Elena Belavina, Karan Girotra

Cornell University, United States of America

This study explores multi-agent data-driven decision-making in a supply chain with vertical competition. We find that the sample average approximation and kernel optimization approaches can tacitly collude, reduce double marginalization, improve profits for all participants while protecting consumer welfare. Besides, non-coordinating contracts can even reduce more double marginalization than coordinating ones in the data-driven setting, especially when the feature distribution exhibits skewness.



An optimistic-robust approach for omnichannel inventory management

Pavithra Harsha, Shivaram Subramanian, Ali Koc, Mahesh Ramakrishna, Brian Quanz, Dhruv Shah, Chandra Narayanaswami

IBM, United States of America

We propose a novel bimodal inventory optimization (BIO) model and algorithm to position inventory across a retail chain to meet time-varying omnichannel demand. While prior Robust optimization (RO) models emphasize the downside, i.e., worst-case adversarial demand, BIO also considers the upside to remain resilient like RO while also reaping the rewards of potential positive outcomes. Experiments project a profitability gain of 15% for BIO over RO on real-life data from a major retail chain.



Understanding the sales impact of automobile features in new and used-car markets

Hojun Choi1, Ahmet Colak2, Sina Golara3, Achal Bassamboo1

1Northwestern University (Kellogg School of Management); 2Clemson University (Wilbur O. and Ann Powers College of Business); 3Kennesaw State University (Coles College of Business)

The automotive sales has focused on selling an experience or a lifestyle via features. Features are optional add-ons that increase product attractiveness (from stereo audio to cruise control) and basis for purchasing decision. While previous studies conducted car-level analysis on sales, the effect of features has remained unexplored. We examine features' collective impact on sales time along new and used-car segments, propose a two-stage estimation framework, and suggest policy recommendations.

 
SD 14:45-16:15SD10 - SP4: Snap Presentation: Supply chain and logistics design
Location: Mont Royal I
 

To join or not to join? Collaborative shipping through freight-sharing platforms

Bram J De Moor1, Joren Gijsbrechts2, Stefan Creemers3, Robert N Boute1,4,5

1Research Center for Operations Management, KU Leuven; 2Católica Lisbon School of Business and Economics; 3IESEG School of Management; 4Technology and Operations Management Area, Vlerick Business School; 5Flanders Make@KU Leuven

Freight-sharing platforms, where shippers can offer excess transportation capacity at a discounted cost, enable the effective sharing of shipping capacity. This occasional offer of excess transportation capacity introduces new opportunities in inventory management. We study inventory decisions for a company that interacts with a freight-sharing platform. We derive optimal ordering policy characteristics and propose replenishment heuristics.



Value of information analysis for supply chain network design under uncertainty

Austin Iglesias Saragih1, Milena Janjevic2, Matthias Winkenbach3, Jarrod Goentzel4, Gilberto Montibeller5

1Massachusetts Institute of Technology, United States of America; 2Massachusetts Institute of Technology, United States of America; 3Massachusetts Institute of Technology, United States of America; 4Massachusetts Institute of Technology, United States of America; 5Loughborough University, United Kingdom

In this paper, we formulate an optimal information gathering strategy (IGS) to identify which uncertainties in the supply chain network drive our decisions. Existing approaches consider uncertainties, but do not consider the benefit of resolving them. Based on stylized, numerical, and case study results, we show a significant value of optimal IGS. As a non-monotone non-submodular minimization problem, we solve the problem with an algorithm which achieves a constant approximation guarantee.



Time to recover market share: Lasting effects of supply chain disruptions on firm performance

Minje Park1, Anita Carson2, Rena Conti2

1Columbia University, United States of America; 2Boston University, United States of America

Leading thinkers in supply chain management have proposed the long-term effects of supply chain disruptions on market share as customers shift their purchases to competitors. Motivated by this insight, we empirically analyze the lasting effects of supply chain disruptions on firms' market shares. Focusing on pharmaceutical supply chain disruptions, we find that products do not fully recover from the market share loss even after they recover from supply chain disruptions.



The value of contractual commitments in robust supply chain network design

Amin Ahmadi Digehsara1, Amir Ardestani-Jaafari1, Shumail Mazahir2

1University of British Columbia; 2SKEMA Business School

This paper investigates the impact of advance commitment on supply chain network design under demand uncertainty. The study develops a robust cooperative model and solves it using a column-and-constraint generation algorithm, finding that this approach significantly reduces conservatism and improves performance compared to a non-cooperative model. The research highlights the potential benefits of contractual commitment for companies seeking to enhance their supply chain operations.



Digital divide in online retailing: the role of ecommerce fulfillment offerings

John-Patrick Paraskevas1, Xiaodan Pan2, Isaac Elking3, Hyosoo Park4

1University of Tennessee, U.S.; 2Concordia University, Canada; 3University of Houston-Downtown, U.S.; 4University of Dayton, U.S.

This study examines the relationship between the digital divide and online retail sales, encompassing internet infrastructure and socioeconomic inequalities. We demonstrate how retailers can better bridge the divide by leveraging omnichannel and online fulfillment options. Our research emphasizes the significance of incorporating the digital divide into ecommerce fulfillment strategies. We make a contribution to the literature on diversity, equity, and inclusion in operations management.



Platform design for the first mile of commodity supply chains

Sergio Camelo Gomez1, Joann de Zegher2, Dan Iancu1

1Stanford University, USA; 2Massachusetts Institute of Technology, USA

We propose a data-driven platform that provides traceability to the first mile of agricultural supply chains by coordinating the transactions of farmers and intermediaries. We model unique aspects of the supply chain, including pre-existing informal relationships between farmers and intermediaries, and we develop algorithms to solve real-world instances. We test the results on data from the palm oil supply chain and show the platform’s potential to reduce costs and increase farmers’ welfare.

 
SE 16:30-18:00SE10 - SP5: Snap Presentation: Sustainable operations
Location: Mont Royal I
 

Does renewable energy renew the endeavor in energy efficiency?

Amrou Awaysheh1, Christopher Chen2, Owen Wu2

1Kelley School of Business, Indiana University, Indianapolis, IN, United States of America; 2Kelley School of Business, Indiana University, Bloomington, IN, United States of America

We examine whether and how renewable energy (RE) adoption can increase or decrease energy efficiency (EE) improvement. Using site-level data, we estimate the impact of changes in RE usage and in the acquisition approach on the EE. We find that using RE to meet 10% more of a site's energy demand led to an additional 2.0% improvement in EE. While purchasing RE credits or entering into power purchase agreements led to gains in EE, installing on-site RE generators had no effect.



Urban mining, critical material scarcity, and the renewable energy transition

Serasu Duran1, Clara Carrera2, Atalay Atasu2, Luk N Van Wassenhove2

1Haskayne School of Business, University of Calgary, AB, Canada; 2INSEAD, Fontainebleau, France

Clean energy technologies require large amounts of critical metals and minerals, the demand for which is skyrocketing as the global energy sector rapidly shifts towards renewable energy. The scarcity of critical materials may prevent governments from reaching their ambitious clean energy targets and jeopardize the profitability of the renewable energy sector. Inspired by this challenge, we investigate mechanisms that can address the impact of scarcity on the renewable energy transition momentum.



The role of driver behavior in moving the electric grid to zero emissions

Leann Thayaparan, Georgia Perakis

MIT, United States of America

The ability to produce electricity when renewables allow and store it for later demand is crucial for emissions reduction. Electric Vehicles (EVs) could provide distributed energy storage to the electric grid through optimal charging and discharging, however, highly complex, non-linear driver behavior must be accounted for. In this work we collaborate with an American EV manufacturer to combine machine learning with optimization to model driver behavior to size the capacity of EV energy storage.



Dynamic valuation and optimal control of a battery under performance degradation

Joonho Bae, Roman Kapuscinski, John Silberholz

Ross School of Business, University of Michigan, United States of America

Quantifying the operating cost of a battery has been considered a key challenge for economic profitability in the battery literature/industry. One key modeling difficulty is that the cost is realized through different types of performance degradation. This work takes an analytical approach to compare the optimal dynamic policy under different degradation models (capacity-degradation-only, efficiency-degradation-only, and correlated degradation).

 
Date: Monday, 26/June/2023
MA 8:00-9:30MA10 - SP6: Snap Presentation: Supply chain management
Location: Mont Royal I
 

Effect of correlated supply uncertainty on buyer’s profit

Aadhaar Chaturvedi

The University of Auckland Business School, New Zealand

We investigate the effect of upstream supply risk correlation of substitutable items. Suppliers offer menu of price-quantity or wholesale price contracts. Using common agency methodology we characterize the equilibrium contracts. We find that the buyer's profits are increasing in yield correlation under wholesale price contracts but are increasing under price quantity contracts only when product substitutability is low and in fact decrease for high product substitutability.



Robust spare parts inventory management.

Zhao Kang, Ahmadreza Marandi, Rob Basten, Kok Ton de

Eindhoven University of Technology, Netherlands, The

We consider the problem faced by spare parts inventory that demand intensity for components is unclear at the beginning of a product life cycle. We present a robust optimization (RO) approach in spare parts inventory to against demand uncertainties and design two more time-efficient algorithms capable of finding solutions in case of a large number of items in the model. Our experiments show that the RO model exhibits remarkable efficacy in case of limited information on the demand distribution.



Gender performance gap in small firms, explained by disruptions and resilience

Amrita Kundu1, Kamalini Ramdas2, Stephen J. Anderson3

1Georgetown University, United States of America; 2London Business School; 3University of Texas, Austin

We examine the impact of business disruptions in explaining the gender gap in small firm performance in developing countries. We find that business disruptions significantly increase gender gap in firm performance – on average, business disruptions decrease sales and sales growth of a small women-led firm by 11.6% and 15.2 percentage points, respectively, compared to their male counterpart. Importantly, building resilience helps small women-led firms to close this performance gap.



Strategic inventories in competitive supply chains under bargaining

Lucy Gongtao Chen, Weijia Gu, Qinshen Tang

Nanyang Technological University, Singapore

Strategic inventory refers to the inventory held by firms purely out of strategic considerations other than operational reasons (e.g., economies of scale). In this paper, we investigate the roles of strategic inventory in a system with two parallel supply chains under both full bargaining and partial bargaining, which differ in whether inventory is included in the bargaining terms.



Sell more, waste less

Mohammad Moshtagh, Yun Zhou, Manish Verma

McMaster University, Canada

This study proposes a markdown strategy to optimize joint replenishment and pricing decisions in a dynamically changing fresh/non-fresh inventory assortment with stochastic lifetimes, lead times, and demands. We model the problem as a generally modified (r, Q) policy and reformulate that as a MIP model to solve the model exactly. We propose an EOQ approximation and provide some bounds on the optimality gap with respect to market demand, maximum WTP, and lifetime that vanishes asymptotically.

 
MB 10:00-11:30MB10 - SP7: Service network optimization
Location: Mont Royal I
 

Combinatorial Auction Design for networked Returns: mitigating Demand Uncertainty and Externalities in Online Retail Marketplaces

Christina Johanna Liepold1, Pedro Amorim2, Maximilian Schiffer1,3

1Technical University of Munich, School of Management, Munich, Germany; 2Universidade do Porto, Departamento de Engenharia e Gestão Industrial, Porto, Portugal; 3Technical University of Munich, Munich Data Science Institute, Garching, Germany

In global retail marketplaces, returns may result in long shipping distances and loss of welfare through time-induced price deterioration. We propose to minimize these negative impacts by exchanging returns within the marketplace’s supplier network. We show that an auction-based system where suppliers bid on the returned items reduces returns’ shipping distance by up to 88% and increases resell value on average by 5% mitigating the drawbacks of benevolent return policies of retail marketplaces.



Online matching with heterogenous supply and minimum allocation guarantees

Garud Iyengar1, Raghav Singal2

1IEOR (Columbia); 2Tuck School of Business (Dartmouth)

Motivated by our interaction with a labor market, we focus of matching jobs to workers with heterogenous preferences. In each period, jobs arrive sequentially. Each worker has three parameters: her work quality, capacity, and minimum number of jobs she desires. The platform wishes to maximize the matches quality via its online matching policy. We use our model to understand limitations of simple policies and propose an optimal index-based policy. We supplement our theory with extensive numerics.



Cloud cost optimization: model, bounds, and asymptotics

Zihao Qu, Milind Dawande, Ganesh Janakiraman

University of Texas at Dallas, United States of America

Motivated by the rapid growth of the cloud computing industry, we study an infinite-horizon, stochastic optimization problem from the viewpoint of a firm that employs cloud resources to process incoming orders (or jobs) over time. Orders and resources are heterogeneous. The firm's goal is to minimize the long-run average expected cost per period, considering reserved-capacity costs, on-demand capacity costs, and order-delay costs. We show that our proposed policy is asymptotically optimal.



Coins, cards, or apps: Impact of payment methods on street parking occupancy and wait times

Sena Onen Oz1, Mehmet Gumus1, Wei Qi2

1McGill University, Canada; 2Tsinghua University, China

This paper uses a newsvendor setting to analyze the effect of payment methods and parking prices on payment amounts, occupancy, and wait times. Empirical results show that cash or mobile app payments are less than credit card payments, and lower prices increase payments for all methods. Simulation shows that lowering prices has a greater effect on occupancy and wait times than increasing them. The study also indicates surroundings of parking spaces significantly affect performance measures.



Packages, passengers, or both? The value of joint delivery and ride-hailing

Sheng Liu1, Junyu Cao2

1University of Toronto, Canada; 2University of Texas, Austin, USA

With the emergence of on-demand platforms, it has become viable for drivers to participate in package delivery and passenger rides operations at the same time. The integration and coordination of the two services, known as co-modality, is considered a promising solution for improving the efficiency of urban logistics and mobility systems. In this work, we propose a simple zoning-based coordination policy and analyze its performance against pure delivery and ride-hailing policies.



Online facility location

Wei Qi1, Junyu Cao2, Yan Zhang3

1Tsinghua University; 2University of Texas at Austin; 3McGill University

TBD

 
MC 13:00-14:30MC10 - SP8: Snap Presentations: Queuing theory and application
Location: Mont Royal I
 

The value of service-age information in an observable M/G/1 queue

Lin Zang1, Ricky Roet-Green1, Yoav Kerner2

1University of Rochester, United States of America; 2Ben-Gurion University of the Negev, Israel

This paper studies how service-age information influences customers’ strategic joining decisions in an observable M/G/1 queue. We ask how such information is reflected in customers' strategies at equilibrium, and what would be the corresponding system throughput and social welfare. The managerial insights indicate that a revenue-maximizing provider should disclose the service-age information when congestion is high, while a social planner should disclose the information when congestion is low.



Managing capacity reservation for low-priority strategic customers

Guanlian Xiao1, Marco Bijvank2

1Cape Breton University, Canada; 2University of Calgary, Canada

We study a problem where a fixed number of servers must be split between a shared and a dedicated track. High-priority customers can be served on the dedicated track or the shared track with non-preemptive priority over low-priority customers. Low-priority customers are strategic and choose to either join the shared track or balk from the system based on wait time information. We use a queueing game to study the capacity allocation decision under different information revealing policies.



Queue visibility decisions in customer-intensive services

Junxue Zhang, Allen Chenguang Wu, Ying-Ju Chen

The Hong Kong University of Science and Technology, Hong Kong S.A.R. (China)

Strategic servers may discreetly disclose or hide queue length information to manage customers' joining behavior. For customer-intensive services, the choice of service rate further complicates this queue observability decision by affecting the service quality and consequently customers’ service rewards. In this work, we provide an integral analysis of managing speed-quality trade-off with the joint use of pricing and queue disclosure strategies.



Rating and service quality prediction in online labor markets: models and implications

Guanting Wu1, Hai Wang2, Peter Zhang1

1Heinz College of Information Systems and Public Policy, Carnegie Mellon University; 2School of Computing and Information Systems, Singapore Managment University

Online labor markets are growing rapidly, where the numerical rating to workers provides a critical metric of service quality. In this study, we propose a two-stage machine learning framework to predict such quality. We apply our method on a unique from a leading online labor platform. We provide an understanding of how various features impact service quality. Then, we discuss the value of prediction in decision-making and provide actionable insights to improve service quality in OLMs.



On pricing a quality-diversified service with an option to stall

Ricky Roet-Green, Aditya Shetty

Simon Business School, University of Rochester, United States of America

Service providers often offer multiple variants of a service to their customers simultaneously through different servers. These servers could differ in their service value and expected service times, making one server preferable to customers over the other. However, even when the preferred server is busy and the less preferred server is free, customers may choose to wait for the preferred server. This behavior is called "stalling". Our goal is to price the servers in order to maximize revenue.



Need a quick ride or lower fee? Price and waiting time differentiation in ride-hailing platforms

Masoumeh Shahsavari1, Emre Demirezen2, Subodha Kumar1

1Temple university, United States of America; 2University of Florida, United States of America

Ride-hailing platforms are highly popular so their decisions can affect social satisfaction levels significantly. The price determined by the platform is so critical decision factor in managing their demand and pool of available drivers. However, consumers are affected by pricing in different ways due to their heterogeneity of price or waiting time sensitivity.

We analyze a waiting time differentiation pricing strategy using a game-theoretic model in both monopoly and duopoly environments.

 
MD 14:45-16:15MD10 - SP9: Snap Presentation: Forecast and innovative operations
Location: Mont Royal I
 

Nailing prediction: experimental evidence on the value of tools in predictive model development

Paul Joseph Hamilton, Daniel Yue, Iavor Bojinov

Harvard Business School, United States of America

Prior discussions of predictive model development highlight advances in methods, but the value of tools that implement those methods has been understudied. In a field experiment, we study the importance of tools by restricting access to machine learning libraries in a prediction competition. We find that teams with unrestricted access perform 30% better, and teams with high general data-science skills are less affected by the intervention than teams with high tool-specific skills.



Remanufacturing with innovative features: a strategic analysis

Can Baris Cetin1,2, Georges Zaccour1,2

1HEC Montreal, Canada; 2GERAD, Canada

We investigate the remanufacturing strategy for the original equipment manufacturer (OEM) and independent remanufacturer (IR) in an innovative industry where the consumer valuation of the products increases with the innovation level and we consider the investments of an OEM to enhance innovation, in the face of a potential entry onto the market by an IR, together with two remanufacturing strategies: whether to remanufacture and whether to include innovative features in remanufactured products.



Interactive optimization with unknown value function: illustrative application to sustainable sourcing in the apparel industry

Mirel Yavuz, Charles J. Corbett

University of California, Los Angeles, United States of America

Optimization in sustainability is inherently multi-criteria and the underlying value function is usually unknown and difficult to elicit. Firms seeking to be more sustainable face difficult choices during material and supplier selection with no clear guidelines on how to make trade-offs between conflicting environmental impact categories. We propose an interactive optimization method to help decision makers, using an illustrative example of sustainable sourcing in the apparel industry.



Towards circular economy: Coexistence or encroachment in industrial symbiosis

Xiaoying Tang1, Osman Alp2, Yong He1

1Southeast University; 2University of Calgary

This paper considers an industrial symbiosis system composed of a supplier and a manufacturer. The supplier produces product A with the output of by-product, which can be reused by the manufacturer as input to produce product B. Competition and cooperation are often juxtaposed in the same system. This paper examines the mode choice of the supplier, i.e., continue to cooperate to supply by-products to the manufacturer or generate direct competition by encroaching on the manufacturer's market.

 
ME 16:30-18:00ME10 - SP10: Snap Presentation: Retail and revenue management
Location: Mont Royal I
 

Giveaway strategies for a new technology product

Ali Lotfi, Mehmet A. Begen, Joe Naoum-Sawaya

Western University, Canada

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Assortment and Price Optimizations under a Multi-Purchase Model

Milad Mirzaee, Elaheh Fata, Guang Li

Smith School of Business, Queen’s University, Canada

We propose a multi-stage choice model in which customers can choose multiple products and multiple units of each product in a single shopping trip. We characterize the optimal assortment under the cardinality, space, and basket size constraints, respectively. We prove the NP-hardness of the problem under the latter two constraints and develop approximation algorithms to find near optimal assortments. We solve the price optimization problem efficiently and provide a calibration method.



Product line design vs. assortment optimization under the mixed multinomial logit model

Oliver Vetter, Niloufar Sadeghi, Cornelia Schön

University of Mannheim, Germany

This paper studies assortment optimization and product line design problems under the mixed multinomial logit model and discrete pricing. Both literature streams are connected by improving exact, extending approximate, and novel heuristic methods. We show that an FPTAS algorithm exists even if prices are taken into account. To improve the state-of-the-art conic formulation, valid inequalities are introduced to a branch and cut method. Our results show an average time reduction of 35 % - 66 %.



Price and quality competition while envisioning a quality-related product recall

Amirhossein Jafarzadeh Ghazi, Salma Karray, Nader Azad

Ontario Tech University, Canada

Many product recalls are caused by quality-related product failures. This paper analyzes quality and pricing strategies for competing firms facing the risk of a severe quality-related recall making the product hazardous and leading to its removal from the market. We develop a two-stage Nash game where the probability of recall depends on the firms’ chosen quality investments, and either firm can experience a recall.



Is Your Price Personalized? Alleviating customer concerns with Inventory Availability information

Arian Aflaki, Qian Zhang

Katz Graduate School of Business, University of Pittsburgh, United States of America

Customers are concerned about personalized pricing (PP) tactics. Using a Bayesian persuasion framework, we study whether and under what conditions price can signal such PP implementation to customers. We also investigate whether disclosing inventory availability information can alleviate customer concerns and benefit the firm and customers. We show that price alone may not signal PP, and firms can create transparency over the pricing strategies by disclosing inventory availability information.

 

 
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