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SB31<br />

2 - The Impact of Cost and Quality on Illegal Goods in the<br />

Supply Chain<br />

Maqbool Dada, Professor, Johns Hopkins Carey Business School,<br />

100 International Drive, Baltimore, MD, 21202, United States of<br />

America, dada@jhu.edu, Arkadi Seidscher, Stefan Minner<br />

A manufacturer of a branded product may deter competition from parallel<br />

imports, smuggled goods or counterfeits by investing in higher quality and<br />

lowering price. A four stage model of competition is developed to examine the<br />

impact of such competition. The analysis also has implications for legal means of<br />

competition; for example, from store brands in supermarkets or generic drugs in<br />

pharmacies.<br />

3 - How To (and How Not To) Manage Supplier’s Process<br />

Improvement: Delegation, Incentives, or Audit<br />

Mehmet Gumus, Assistant Professor, McGill University,<br />

1001 Sherbrooke West, Montreal, QC, H3A1G5, Canada,<br />

mehmet.gumus@mcgill.ca, Mohammad Nikoofal<br />

In this paper, we explore the effectiveness of process improvement as a supply<br />

disruption mitigation strategy in the presence of moral hazard and adverse<br />

selection. In order to address these issues, we develop a dyadic supply chain<br />

model where both the degree of supply disruption risk and supplier’s mitigation<br />

effort are unobservable from retailer. Our analysis shows that eliminating moral<br />

hazard via monitoring has a non-monotonic effect on the screening cost.<br />

4 - Intermediated Sourcing under Supply Disruption Risk<br />

Zhibin (Ben) Yang, Assistant Professor, University of Oregon, 1208<br />

University of Oregon, Eugene, 97403, United States of America,<br />

zyang@uoregon.edu, Volodymyr Babich<br />

We analyze a model where multiple buyers decide whether to procure goods from<br />

unreliable suppliers directly or using an intermediary firm. We show that lowrevenue<br />

buyers may enjoy spill-over benefits of procurement cost reduction<br />

when high-revenue buyers choose to use the intermediary. Intermediation may<br />

also reduce system-wide product waste, by coordinating diversification efforts<br />

across buyers. These benefits have to be weighed against intermediation costs,<br />

such as double-marginalization.<br />

■ SB31<br />

31- North 222 C- CC<br />

Supply Chain Risk and Resilience<br />

Cluster: Managing Disruptions in Supply Chains<br />

Invited Session<br />

Chair: Kash Barker, Assistant Professor, School of Industrial and<br />

Systems Engineering, University of Oklahoma, 202 W. Boyd St., Rm<br />

124, Norman, OK, 73019, United States of America,<br />

kashbarker@ou.edu<br />

1 - Disruption Management during Supply Chain Disruptions<br />

Cameron MacKenzie, University of Oklahoma, 202 W. Boyd St.,<br />

Norman, OK, United States of America, cmackenzie@ou.edu,<br />

Kash Barker<br />

Many firms suffered from supply disruptions due to the recent Japanese<br />

earthquake and tsunami. We analyze these disruptions by developing a model in<br />

which several suppliers’ production facilities are rendered inoperable. Each<br />

supplier must decide whether to move production to an alternate facility or wait<br />

for its facility to reopen. If suppliers do not produce at alternate facilities, firms<br />

will need to decide how to mitigate the impacts of a supply shortage.<br />

2 - Resilient Supply-chain Network Design with Multi-sourcing<br />

Haifei Yu, PhD, Northeastern University, No.11, Lane 3,<br />

WenHua Road, Heping District,Liaoning, Shenyang, 110004,<br />

China, hfyu@mail.neu.edu.cn, Shoufeng Ji<br />

With the uncertainty risk of supply disruptions, it is critical for the supply-chain<br />

system to be resilient. We study the problem of designing a resilient supply chain<br />

network with multi-sourcing, and propose a chance-constrained programming<br />

model, and use a mixed integer linear programming to solve it. We evaluate the<br />

benefit of multi-sourcing, balance operation costs, resilience, and disruption risk<br />

by the computational experiments.<br />

3 - Prediction and Prevention of Disruptions in Supply<br />

Chain Networks<br />

Xin Chen, Assistant Professor, Southern Illinois University<br />

Edwardsville, 3079 Engineering Building, Edwardsville, IL,<br />

62026-1805, United States of America, xchen@siue.edu<br />

The objective of this research is to apply the failure mode, effects, and criticality<br />

analysis (FMECA) and graph theory to predict and prevent disruptions in supply<br />

chain networks. A network may be disrupted due to node failures. A node<br />

represents a supplier, customer, or transportation route. This research applies<br />

graph theory to model supply chain networks and uses the FMECA to identify<br />

critical nodes. A case study of a construction supply chain is analyzed to validate<br />

the methodology.<br />

INFORMS Phoenix – 2012<br />

90<br />

4 - Supply Chain Resilience<br />

Ivan Hernandez, Stevens Institute of Technology, 167 8th Street,<br />

Apt 4, Hoboken, NJ, 07030, United States of America,<br />

ihernand@stevens.edu, Jose Ramirez-Marquez, David Nowicki<br />

We present a method that allows decision makers to ensure a Supply Chain (SC)<br />

returns to a high level of performance following a contingency. We introduce the<br />

concept of SC resilience as a function of the post-event investment resources<br />

needed for the SC to “bounce back”. The concepts can be used as a guide for<br />

companies to use their long-term SC plan as a starting point, then begin to ask<br />

themselves what they would do if various contingencies occur.<br />

■ SB32<br />

32- North 223- CC<br />

Assembly Line Design and Balancing I<br />

Contributed Session<br />

Chair: Slim Daoud, Université de Technologie de Troyes,<br />

32 Rue du Palais de Justice, Troyes, 10000, France, slim.daoud@utt.fr<br />

1 - Spreadsheet Based Optimization for Cell Formation Problem<br />

Gurkan Ozturk, Assistant Professor, Anadolu University, Faculty of<br />

Engineering, Department of Industrial Eng., Eskisehir, 26555,<br />

Turkey, gurkan.o@anadolu.edu.tr, Mumin Sonmez<br />

In this study, a new hybrid algorithm based on competitive neural network and<br />

particle swarm optimization approaches is proposed to solve cell formation<br />

problem with alternative part routings. This algorithm is implemented in two<br />

spreadsheet platform: MS Excel and Google Spreadsheet. Although MS Excel<br />

faster than the Google Spreadsheet, the property of internet access of google<br />

spreadsheet presents different advantages.<br />

2 - Neuro-fuzzy-genetic Algorithm for the Robotic Assembly<br />

Lines Balancing<br />

Slim Daoud, Université de Technologie de Troyes, 32 Rue du Palais<br />

de Justice, Troyes, 10000, France, slim.daoud@utt.fr, Yalaoui<br />

Farouk, Amodeo Lionel, Chehade Hicham, Duperray Philippe<br />

We are interested in an industrial application of a robotic assembly line problem.<br />

It consists of seizing the products on a moving conveyor and placing them on<br />

different deposit points. The goal is to optimize the efficiency of the line. As in our<br />

industrial application we are bounded by the execution time, we suggest a genetic<br />

algorithm combined with a neuro-fuzzy network to solve our problem. The<br />

experimental results show the advantages and the efficiency of the developed<br />

method.<br />

3 - Balancing Mixed Model Assembly Line with Capacity Buffer<br />

Jinlin Li, Xi’an Jiaotong University, No.28, Xianning West Road,<br />

Xi’an, China, ljl1019@163.com, Jie Gao, Linyan Sun<br />

This paper investigate the design of a mixed model assembly line with capacity<br />

buffer to satisfy unstable demands. The objective is to minimize the expected<br />

labor cost, including cost for normal operation and overtime work. A mathematic<br />

model is built and a method is proposed to estimate the cost lower bound. A<br />

branch, bound and remember algorithm is developed and the numerical<br />

experiment shows that the algorithm is effective and efficient.<br />

4 - Recognition of Freeform Surface Sheet Metal Features<br />

Saied Darwish, Professor, King Saud University, Riyadah,<br />

800/11421, Saudi Arabia, darwish@ksu.edu.sa,<br />

Hammouda Mousal<br />

This paper describes the design and implementation of a system for automated<br />

feature recognition of freeform surface CAD models of stamped and notched<br />

sheet metal parts, represented in STEP AP203 format through CATIA V5.

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