CORS No Room Info

How to Navigate the 

Technical Sessions 

There are four primary resources to help you 

understand and navigate the Technical Sessions: 

• This Technical Session listing, which provides the 

most detailed information. The listing is presented 

chronologically by day/time, showing each session 

and the papers/abstracts/authors within each 

session. 

• The Session Chair, Author, and Session indices 

provide cross-reference assistance (pages 104-115). 

• The floor plans on page 11 show you where technical 

session tracks are located. 

• The Master Track Schedule is on page 116 and the 

inside back cover. This is an overview of the tracks 

(general topic areas) and when/where they are scheduled. 

Quickest Way to Find Your Own Session 

Use the Author Index (pages 106-111) — the session 

code for your presentation(s) will be shown along with 

the track number. You can also refer to the full session 

listing for the room location of your session(s). 

The Session Codes 

SB01 

The day of 

the week 

Time Blocks 

Track number. Coordinates with 

the room locations shown in the 

Master Track Schedule. Room locations 

are also indicated in the listing 

for each session. 

Time Block. Matches the time 

blocks shown in the Master Track 

Schedule. 

Sunday 

B - 10:00am – 11:30am 

C - 12:30pm – 2:00pm 

D - 3:30pm – 5:00pm 

Monday- Tuesday 

A - 8:00am – 9:30am 

B - 11:00am – 12:30pm 

C - 1:30pm – 3:00pm 

D- 3:30pm – 5:00pm 

Wednesday 

A - 8:00am – 9:30am 

B - 10:00am – 11:30am 

C - 12:30pm – 2:00pm 

Plenaries and lunch breaks are interspersed among the 

technical session time blocks. 

Room Locations/Tracks 

All tracks and technical sessions are held in the Westin 

Harbour Castle. Rooms are shown in the Master Track 

Schedule, technical session listing, and hotel floor plans. 

21 

Sunday, 10:00am - 11:30am 

■ SB01 

T ECHNICAL S ESSIONS 

Rich Vehicle Routing Problems 

Sponsor: Transportation Science & Logistics 

Sponsored Session 

Chair: Teodor Gabriel Crainic, Department Management & Technology, 

ESG, UQAM, C.P. 8888, Succ. Centre-ville, Montreal, QC, H3C 3J7, 

Canada, theo@crt.umontreal.ca 

Co-Chair: Michel Gendreau, CIRRELT/University of Montreal, C.P. 

6128, Succ. Centre-ville, Montreal, QC, H3C 3J7, Canada, 

michel.gendreau@cirrelt.ca 

1 - An ILP Program to Solve the Weekly Log-Truck 

Scheduling Problem 

Nizar El Hachemi, PhD Student, Interuniversity Reseach Centre 

on Enterprise Networks, Logistics and Transportation (CIRRELT), 

C.P. 6128, Succursale Centre-ville, Montreal, H3C 3J7, Canada, 

nizar@crt.umontreal.ca, Issmail El Hallaoui, Louis-Martin 

Rousseau, Michel Gendreau 

We present the LTSP integrating routing and scheduling of trucks. This problem 

includes aspects such as pick-up and delivery and multiple products. We propose 

a two-phase approach. In the first one, we solve an ILP program that determines 

the optimal destinations of the logs over a week while in the second one, we 

solve an ILP problem that ensures routing and scheduling of trucks in a daily 

basis. Almost all of the instances were solved whitin 2 minutes with less than 1% 

of gap. 

2 - Routing City Freighters in Two-Tier City Logistics Systems 

Yuvraj Gajpal, Post Doctoral Fellow, CIRRELT / UQAM, Pavillion 

Andre Aisenstadt Bureau 3520, 2920 Chemin de la Tour, 

Montreal, QC, H3T1J4, Canada, gajpaly@crt.umontreal.ca, 

Teodor Gabriel Crainic, Michel Gendreau 

In two-tier City Logistics systems, two types of facilities are used to organize the 

distribution of goods to their ultimate destination: City Distribution Centers and 

satellite platforms. In this paper, we focus on the problem of routing “city 

freighters,” the vehicles that move goods between satellites and final customers, 

which involves the combination of several routes from different satellites for 

each freighter. We propose decomposition-based heuristics to solve the problem. 

3 - Multi-thread Cooperative Optimization for Rich VRP 

Nadia Lahrichi, CIRRELT / Ecole des Siences de la Gestion, 

UQAM, CP 8888, Succ. Centre-ville, Montreal, Canada, 

nadial@crt.umontreal.ca, Michel Gendreau, Walter Rei, 

Cerasela Crisan, Teodor Gabriel Crainic 

In this paper, we address a rich VRP application, which considers basic duration 

and capacity constraints with additional dimensions such as time windows, 

multiple periods and multiple depots. We propose an effective solution approach 

based on a new multi-thread cooperative optimization framework that can 

simultaneously deal with multiple dimensions of a problem instead of the 

traditional methods that only address a few dimensions at a time. 

4 - A Heuristic for the Pickup and Delivery TSP with LIFO Loading 

and Multiple Stacks 

Michel Gendreau, CIRRELT/University of Montreal, C.P. 6128, 

Succ. Centre-ville, Montreal, QC, H3C 3J7, Canada, 

michel.gendreau@cirrelt.ca, Jean-Francois Coté, Jean-Yves Potvin 

We propose an “Adaptive Large Neighborhood Search” heuristic for a routing 

problem in which a single vehicle must move objects subject to complex loading 

constraints. Each object is moved from a specified pickup point to a specified 

delivery location. Objects have a standard width and are placed in a given 

number of “stacks” in the vehicle. Computational results on special cases of the 

problem indicate that the proposed heuristic compares very favorably with 

existing ones for these cases.

SB02 

■ SB02 

Combinatorial Optimization I 

Contributed Session 

Chair: Ruonan Zhang, Simon Fraser University, Department of 

Mathematics, SFU, 250-13450 102 Avenue, Surrey, BC, V3TOA3, 

Canada, rza1@sfu.ca 

1 - A Lagrangian Relaxation Approach to Iterative Auctions for 

Procurement of Multiple Items 

Bahareh Mansouri, McMaster University, 1280 Main St. W., 

Hamilton, ON, L8S 4K1, Canada, bahar.mansoori@yahoo.ca, 

Elkafi Hassini 

Bidding on combinations of items in combinatorial auction brings in techniques 

from combinatorial optimization to answer the most fundamental question in 

economics: Who should get what goods and at what price. In this paper we 

design an iterative auction mechanism for procuring multiple items, give 

informative feedback at the end of each round, introduce an efficient method for 

incrementing the bids and also report on our computational study on the related 

integer programming problem. 

2 - Coverage Models with Time Dependent Traveling Times 

Verena Schmid, University of Vienna, Bruenner Strasse 72, 

Vienna, 1210, Austria, verena.schmid@univie.ac.at, Karl Doerner 

For emergency service providers it is essential to locate and dispatch emergency 

vehicles while achieving adequate coverage. We extended the formulation of the 

double standard coverage model and emphasis locating more vehicles in densely 

populated areas. Furthermore we also take into account variations in travel times 

and reallocations. The goal of this approach is to ensure coverage all day long 

and keep reallocations at a decent level. The problem is solved using VNS. 

3 - Construction of BIBDs Using MIP Solvers 

Takeo Yamada, Professor, National Defense Academy, 1-10-20 

Hashirimizu, Yokosuka, Ka, 239-8686, Japan, yamada@nda.ac.jp, 

Seiji Kataoka, Daisuke Yokoya 

BIBD (balanced incomplete block design) is instrumental in design of 

experiments. This is usually constructed using algebraic approaches, but recently 

heuristic algorithms have also been tried. These include simulated annealing and 

local search methods. In this paper, we present a novel approach to construct 

BIBDs that makes use of MIP (mixed integer programming) solvers. Branch-andbound 

and tabu search algorithms are given with some numerical experiments. 

4 - Minimum Spanning Tree Problems with Conflict Constraints 

and Extensions 

Ruonan Zhang, Simon Fraser University, Department of 

Mathematics, SFU, 250-13450 102 Avenue, Surrey, BC, V3TOA3, 

Canada, rza1@sfu.ca, Abraham Punnen, Santosh Kabadi 

We consider the minimum spanning tree problem with conflict constraints. New 

polynomially solvable cases are identified and new complexity results are 

discussed. Also, efficient heuristic algorithms are developed for the problem and 

results of extensive computational experiments are reported. Finally several 

extensions of the problem and related algorithmic results are presented. 

■ SB03 

Nonlinear Programming and Applications 


Chair: Yu-Ru Syau, Professor and Department Chair, National Formosa 

University, Department of Information Management, National Formosa 

University, Yunlin, 63201, Taiwan - ROC, yrsyau@nfu.edu.tw 

1 - A Global Optimization Approach for Nonlinear Separation of 

Two Types of Data 

Kwangsoo Kim, Korea University, 1, 5-Ka, Anam-Dong, 

Seongbuk-Ku, Seoul, Korea, Republic of, kksoo@korea.ac.kr 

Abstract not available at this time. 

2 - Scalarization Functions and Applications 

Christiane Tammer, Professor, Martin-Luther-University 

Halle-Wittenberg, Theodor-Lieser-Str. 5, Halle, Germany, 

christiane.tammer@mathematik.uni-halle.de, 

Constantin Zalinescu 

Scalarization functions were used in vector optimization for a long period. 

Similar functions were introduced and used in economics under the name of 

shortage function or in mathematical finance under the name of (convex or 

coherent) measures of risk. The main aim of this talk is to study algebraic and 

topological properties of such functions and to give some applications in vector 

optimization and mathematical finance. 

CORS / INFORMS International - 2009 

22 

3 - Optimal Waterflooding of Large Oil Reservoirs 

Leon Lasdon, Professor, IROM Department, McCombs Business 

School, University of Texas, Austin, TX, 78731, United States of 

America, lasdon@mail.utexas.edu 

A multiperiod NLP model used in optimal waterflooding of mature reservoirs has 

water injection rates into each injector as controls and oil production from each 

producer as outputs. We describe this model and its applications. 

4 - E-B-Vex and E-B-Preivex Functions 

Yu-Ru Syau, Professor and Department Chair, National Formosa 

University, Department of Information Management, 

National Formosa University, Yunlin, 63201, Taiwan - ROC, 

yrsyau@nfu.edu.tw, E. Stanley Lee, Lixing Jia 

A class of functions called E-B-vex functions is defined as a generalization of 

E-convex and B-vex functions. Similarly, a class of E-B-preivex functions which 

are generalizations of preinvex and B-vex functions is introduced. Some 

properties of these classes are studied. 

■ SB04 

Various Applications 

Cluster: Optimization/Mixed Integer Nonlinear Programming 

and Conic Optimization 

Invited Session 

Chair: Imre Polik, Visiting Assistant Professor, Lehigh University, 

Department of Industrial and Systems Engineering, 200 West Packer 

Avenue, Bethelehem, PA, 18015, United States of America, 

imre.polik@gmail.com 

1 - Ky Fan Convexity: Strong Duality and Application 

Jiaping Zhu, PhD Student, McMaster University, 

1280 Main St W, Hamilton, ON, L8S 4K1, Canada, 

zhujp102@gmail.com, Tamas Terlaky 

We investigate the close relation of Ky Fan convexity and the so-called timesharing 

property which is first studied by Yu and Lui in 2006, and present the 

first application of Ky Fan convex optimization problem. Then we study the 

convexity of the perturbation function of Ky Fan convex optimization problem 

and give a short and rigorous proof of the strong duality theorem of it. 

2 - On the Discretize then Optimize Approach 

Kimia Ghobadi, PhD Student, McMaster University, 

1280 Main St W, Hamilton, ON, L8S 4K1, Canada, 

kimia.ghobadi@gmail.com, Tamas Terlaky, Ned Nedialkov 

The “discretize then optimize” approach can be applied to PDE-based 

optimization problems. In this approach, the original continuous problem is 

discretized into a standard, but larger optimization problem. This technique is 

flexible to new/modified constraints and objective functions. Although, the 

challenge lies in the size and the stability of the discretized problem. 

3 - Improving Solver Performance by Optimal Parameter Tuning 

Imre Polik, Visiting Assistant Professor, Lehigh University, 

Department of Industrial and Systems Engineering, 

200 West Packer Avenue, Bethelehem, PA, 18015, 

United States of America, imre.polik@gmail.com 

Most optimization solvers use a default set of parameters. If a solver fails on a 

problem, it rarely tries again automatically with a new set of parameters. Even 

though changing only one parameter would make the solver succeed. We 

present techniques to tune the parameters both before and during the course of 

the algorithm. The methods are illustrated with the symmetric cone optimization 

solver SeDuMi. The approaches include global optimization, reinforcement 

learning and statistical analysis. 

■ SB05 

Airline Applications: Sloan Session I 

Sponsor: Aviation Applications 


Chair: Amy Cohn, University of Michigan, Ind & Operations Engineer, 

1205 Beal Ave, Ann Arbor, MI, 48109, United States of America, 

amycohn@umich.edu 

1 - Building Lines of Flight for Improved Maintenance Robustness 

Amy Cohn, University of Michigan, Ind & Operations Engineer, 


amycohn@umich.edu, Marcial Lapp, Alex Heinold

Airlines build lines-of-flight that dictate the sequence of flights an individual 

aircraft will fly over the course of a day. Lines-of-flight that terminate at a 

maintenance facility provide greater opportunity for recovering from unexpected 

maintenance requirements. We present methods for modifying existing lines-offlight 

to create lines with an increased probability of being able to overnight at a 

maintenance station if needed. 

2 - Stochastic Scheduling of Runway Operations 

Senay Solak, University of Massachusetts, Isenberg School of 

Management, Amherst, MA, 01003, United States of America, 

solak@som.umass.edu, John-Paul Clarke, Gustaf Solveling, 

Ellis Johnson 

Scheduling of arrival and departure operations is an important problem for 

effective capacity utilization at airports. Although deterministic sequencing 

models have been proposed for this problem, the uncertainty in the scheduled 

operation completion times, such as touch-down and push-back times, so far has 

not been considered. To remedy this shortcoming, we develop a stochastic model 

for this problem, and then investigate the value of a stochastic approach for 

runway operations scheduling. 

3 - The Static Stochastic Ground Holding Problem with 

Demand Uncertainty 

Thomas Vossen, University of Colorado, UCB0419, Boulder, CO, 

80309, United States of America, Vossen@Colorado.EDU 

A key problem when implementing Ground Delay Programs is the allocation of 

ground holding. There is a considerable amount of work in this area, which 

primarily considers the impact of uncertainty in airport capacities. Here, 

however, we focus on demand uncertainty, that is, uncertainties concerning 

aircraft arrival times. We present procedures to determine optimal ground 

holding levels when demand uncertainty is present, and investigate the potential 

of efforts to reduce demand uncertainty. 

■ SB06 

Process and Capacity Planning 


Chair: Ahmed Azab, Assistant Professor, University of Windsor, 

401 Sunset Ave., Windsor, ON, N9B3P4, Canada, azab@uwindsor.ca 

1 - Capacity Planning Method Selection Model 

Amir Azizi, PhD Research Fellow, Science University of Malayasia 

(USM), Engineering Campus, Engineering Campus, Nibong Tebal, 

14300, Malaysia, amirazizi@gmail.com 

A method that is able to update current information based on the actual 

situation is necessary for capacity planning. The interests of this article are; to 

(1) identify capacity planning problems, (2) determine capacity planning 

methods, (3) classify the existing methods with respect to their advantages and 

disadvantages, (4) determine considerable and significant criteria in capacity 

planning, and (5) evaluate the applied methods with respect to the criteria using 

analytic hierarchy process. 

2 - A Supplier’s “Optimal” Quantity-Discount Schedule 

Ginger Yi Ke, PhD Student, University of Waterloo, Department of 

Mangement Sciences, 200 University Avenue West, Waterloo, ON, 

N2L 3G1, Canada, y3ke@uwaterloo.ca, Jim Bookbinder 

The supplier’s optimal quantity discount problem is investigated from the 

perspective of game theory, both noncooperative and cooperative. Taking into 

account the price elasticity of demand, this analysis aids a sole supplier in 

developing a discrete all-unit quantity discount policy for a single-buyer 

distribution channel. The proposed models are discussed in detail and compared 

to previous works. Following numerical studies, we conclude with some remarks 

and suggestions for future research. 

3 - Evaluating Bucket Brigades in Nonlinear Storage Profiles 

Yeming Gong, RSM,Erasmus University, Burg. Oudlaan 50, 

Rotterdam, Netherlands, ygong@rsm.nl, Donald Eisenstein 

This paper gives closed-form analytic expressions for the main performance 

measure of bucket brigades models in order picking systems, and compare the 

performances in different storage profiles. We further compare them with zone 

order picking systems and identify different advantages. 

4 - Mathematical Programming for Process Planning 

Ahmed Azab, Assistant Professor, University of Windsor, 

401 Sunset Ave., Windsor, ON, N9B3P4, Canada, 

azab@uwindsor.ca 

Current approaches for process planning do not satisfactorily support current 

advances and evolution of manufacturing systems and product families. A semigenerative 

process planning system is developed, where at the core a model 

based on a QAP formulation is solved. The proposed model overcomes the 

complexity of the subtour elimination constraint in TSP and mathematically 

formulates the precedence constraints, which are a corner stone of the process 

planning problem. 


23 

■ SB07 

Tutorial: Exploring Best Practices in the 

Teaching of OR/MS 

Cluster: Tutorials 


Chair: Jill Hardin, Virginia Commonwealth University, 1001 W. Main 

Street, P.O. Box 843083, Richmond, VA, 23284-3083, United States of 

America, jrhardin@vcu.edu 

1 - Exploring Best Practices in the Teaching of OR/MS 

Jill Hardin, Virginia Commonwealth University, 1001 W. Main 

Street, P.O. Box 843083, Richmond, VA, 23284-3083, 

United States of America, jrhardin@vcu.edu 

This tutorial explores pedagogical techniques in the teaching of operations 

research and management science. We begin with an overview of best practices 

presented in the OR/MS literature, and place them in the context of the broader 

literature on teaching and learning. Discussion and examples of effectively 

implementing such practices in the OR/MS classroom follow, and various 

resources will be presented. 

■ SB08 

SAB08 

Emergent Care Operations 


Chair: Mohan Gopalakrishnan, Associate Professor, Arizona State 

University, Supply Chain Management, WPC Sch. of Bus., P.O. Box # 

37100, Phoenix, AZ, 85069-7100, United States of America, 

mohan@asu.edu 

1 - Dynamic Surgical Smoothing: Generating Meaningful Short-term 

Forecasts of Surgical Bed Requirements 

Jason Goto, AnalysisWorks Inc, 1385 West 8th Ave, Suite 650, 

Vancouver, BC, V6H3V9, Canada, jgoto@analysisworks.net 

The concept of surgical smoothing on inpatient beds has attracted much interest 

in health care, however a key challenge remains in translating the concept into 

practice in a meaningful way. We developed a purpose-built simulation engine 

that develops short-term forecasts of surgical bed requirements that combines the 

historical patterns with the planned surgical slate. This presentation outlines the 

model, and how it is used for operational decision-making. 

2 - Systems Engineering Opportunities to Improve Traumatic Brain 

Injury Military Healthcare Processes 

Hande Musdal, Northeastern University, 334 Snell Engineering 

Center, Boston, MA, 02115, United States of America, 

hande.musdal@gmail.com, James Benneyan 

Traumatic brain injury (TBI) has been described as the signature injury and silent 

epidemic of the Afghanistan and Iraq wars, estimated to affect 19.6% of U.S. 

servicemen at a cost exceeding $1 billion. The potential and need to optimize 

these processes is significant. We outline several operations research modeling 

opportunities to improve the military’s TBI screening, detection, treatment, 

resource, capacity, and location planning processes, and discuss current progress 

towards these models. 

3 - Locating Automated External Defibrillators in a 

University Community 

Danny Myers, Bowling Green State University, Department of 

Applied Statistics and OR, Bowling Green, OH, 43403, United 

States of America, myers@bgsu.edu, Manoj Mohite 

Automated external defibrillators (AEDs) use smart technology to determine 

whether a victim of cardiac arrest requires defibrillation and will deliver a shock 

only if one is needed. These portable devices are becoming increasingly more 

available in such places as airports and shopping malls. We report on a model for 

determining appropriate locations for AEDs in a university community. Also, we 

describe difficulties encountered when attempting to implement the results 

obtained from the model. 

4 - Emergency Department Experiences of Senior Fallers: 

An Operations Research Analysis 

John Woolcott, University of British Columbia, 

716-828 West 10th Avenue, Vancouver, BC, V5Z 1L8, Canada, 

woolcott@interchange.ubc.ca, Riyad Abu Laban, Karim Khan, 

Bonnie Lillies, Boris Sobolev, Carlo Marra 

Data were collected on 100 fall related ED presentations. During their ED visit, 

86 participants received x-ray or CT-scan and 67 had laboratory tests completed. 

During their time in the ED, 32 participants received physiotherapy assessment 

and 44 were seen by nurses specifically trained to care for seniors. The 

recommended wait time to see a physician and the total time in the ED were 

exceeded for 70 and 60 participants respectively.

SB09 

5 - ED Crowding, Modeling and Analysis 

Mohan Gopalakrishnan, Associate Professor, Arizona State 

University, Supply Chain Management, WPC Sch. of Bus, P.O. 

Box # 37100, Phoenix, AZ, 85069-7100, United States of America, 

mohan@asu.edu, Qing Li, Srimathy Mohan 

This presentation focuses on emergency department crowding problem in a US 

hospital. ED crowding is a crisis that results from the practice of “boarding,” or 

holding, emergency patients who have been admitted to the hospital in the 

emergency department. Throughput, bed availability, delays and staffing 

shortages are some of the critical factors. We develop a modeling framework to 

analyze these issues and suggest ways to improve the efficiency of the system to 

minimize the problem. 

■ SB09 

Decentralized Supply Chains 


Chair: Salma Karray, Assistant Professor, UOIT, 2000 Simcoe Street 

North, Oshawa, Canada, salma.karray@uoit.ca 

1 - Sampling Plans for Acceptance in a Supply Chain Model Based 

on the Bayesian Theory Following Economic Criteria 

Rodrigo Barbosa Correa, Director Operations Research, 

Universidad del Norte, Barranquilla, Colombia, 

rbarbosa@uninorte.edu.co 

In the industry, reducing inspection costs is not useless and contributes to the 

final price of the product satisfying both business and customer. In this 

investigation, a supply chain model is proposed, where the buying-selling 

relationship of both client and supplier are shown and sampling plans are 

designed using Bayesian schemes, both for acceptance of the final product by the 

client and for dispatching of goods by the supplier, where the total average costs 

per unit produced are calculated. 

2 - The Effects of the Source of Policy Deviations in a Decentralized 

Supply Chain: A Simulation Study 

Joong Son, Program Chair, Grant MacEwan College, 10700 - 104 

Ave, Room 5-256K, Edmonton, AB, T6M0B1, Canada, 

sonj2@macewan.ca, Chwen Sheu 

We study performance of a serial supply chain based on ordering policy 

deviations at different parties. The objective of the study is to investigate the 

impact of the source of policy deviations on global as well as local performance. 

Our simulation provides insights via results obtained from the comparisons of 

decentralized replenishment policies that deviate from the base stock policy. 

Results indicate that the supply chain performance is contingent on the types 

and the source of deviations. 

3 - How to Improve the Effectiveness of SCM: A Multi-group 

Analysis-based Approach 

Pietro De Giovanni, Phd Student, Essec Business School, Avenue 

Bernard Hirsch, B.P. 105, 95021, Cergy Pontoise, Paris, France, 

pietro.degiovanni@essec.fr, Fouad El Ouardighi 

This research examines the relationship between Supply Chain Management 

(SCM) and economic performance. The effectiveness of SCM is empirically 

investigated on operational, customer and economic performance. Using a 

sample of French firms, Multi-group analysis distinguishes between firms having 

or not a dedicated structure for SCM, presence/absence of assistance 

mechanisms, and leadership in the down/up stream of the chain. The findings 

have both theoretical and practical implications. 

4 - Supply Chain Competition and Disruption 

June Dong, SUNY Oswego, School of Business, Oswego, NY, 

13126, United States of America, dong@oswego.edu 

Nowadays the business competition is supply chain versus supply chain 

competition. Moreover disruptions in one supply chain may affect the other 

supply chains. We will present a mathematical model to study the competition 

and coordination among supply chains. We then study the supply chain 

disruptions and the impacts on the other supply chains. 

5 - Cooperative Promotions in Supply Chains 

Salma Karray, Assistant Professor, UOIT, 2000 Simcoe Street 

North, Oshawa, Canada, salma.karray@uoit.ca 

Many retailers are sharing the costs of their promotional programs not only with 

their suppliers but also with competing retailers. These different promotional 

programs could create conflict in the channel. We develop a game theoretic 

model and obtain Stackelberg equilibrium solutions in order to study the effects 

of such programs on the supply chain’s strategies and profits. 


24 

■ SB10 

OM in Practice: Some Practical Operations 

Management Problems and Their Solutions 

Sponsor: Manufacturing and Service Operations Management 


Chair: Opher Baron, Rotman School of Management, University of 

Toronto, 105 St George St, Toronto, ON, M5S 3E6, Canada, 

opher.baron@rotman.utoronto.ca 

1 - Bargaining within the Supply Chain & its Implication to 

Coordination of Supply Chains in an Industry 

Desheng Wu, Reykjavik University, Kringlunni 1, School of 

Science and Engineering, Reykjavik, IS-103, Iceland, dash@ru.is, 

Opher Baron, Oded Berman 

We investigate the Nash Equilibrium of an industry with two supply chains. We 

model each chain with a single manufacturer and a single retailer and use a Nash 

Bargaining on the Wholesale (BW) price. We show that both the traditional 

Manufacturer Stackelberg (MS) and the Vertical Integration (VI) strategies are 

special cases of this contract. We propose two supply chain coordination 

mechanisms: bargaining on the wholesale price and coordinating using the 

wholesale price. 

2 - Intertemporal Pricing in a Capacity Constrained Just-in-time 

Supply Chain 

Dehui Tong, Rotman School of Management, University of 

Toronto, 105 St. George St., Toronto, ON, M5S 3E6, Canada, 

Dehui.Tong@rotman.utoronto.ca, Opher Baron, Joe Milner 

We study a hierarchical planning model for a capacity constrained service system 

for multiple customer classes with heterogenous schedule preferences. Strategic 

level prices are determined to regulate customers’ preferences. Customers 

observe posted prices, arrive and are assigned capacity slots dynamically over a 

planning horizon. Extension to overbooking is discussed. Heuristic algorithms 

are proposed to solve the problem. 

3 - DVD Allocation for a Multiple-location Rental Firm 

Iman Hajizadeh, Rotman School of Management, 

105 St. George Street, Toronto, ON, M5S 3E6, Canada, 

iman@rotman.utoronto.ca, Opher Baron, Joe Milner 

We study the problem of purchasing and allocating copies of films to multiple 

stores of a movie rental chain. Using data from a large rental firm, we test 

various demand and return models and present a newsvendor-like formulation 

with multiple rental opportunities. Our model increases the average profit per 

title by 18% and 3% for revenue sharing and standard titles, respectively. We 

discuss the implications of revenue sharing contracts on the profitability of the 

rental firm and the studio. 

4 - Channel Coordination Mechanisms for Basic Products and 

Ancillary Services 

Ming Hu, Assistant Professor, Rotman School of Management, 

University of Toronto, 105 St. George Street, Toronto, ON, M5S 

3E6, Canada, ming.hu@rotman.utoronto.ca, Guillermo Gallego, 

Julie Ward, Jose Luis Beltran, Shailendra Jain 

We study a supply chain where a supplier sells a basic product and an ancillary 

service through a retailer. Random demands for both product and service are 

assumed to be influenceable by sales efforts by the retailer. To achieve channel 

coordination and arbitrarily share the gains of coordination, we propose a 

wholesale price schedule for the product and the service, and provide an 

alternative target rebate scheme that can be separately run by the supplier’s 

production and service departments. 

■ SB11 

Health Care System Modeling 


Chair: Christina Swindells-Nader, Health Systems Planning Advisor, 

Vancouver Coastal Health, 520 West 6th Avenue, Vancouver, BC, V5Z 

4H5, Canada, christina.swindells-nader@vch.ca 

1 - Specialty Surgical Hospitals: Focused Factories or Cream 

Skimmers? Evidence From Texas 

Liam O’Neil, Associate Professor, University of North Texas, 

SPH / HMP Department, 3500 Camp Bowie Blvd, Fort Worth, TX, 

76107, United States of America, loneill@hsc.unt.edu 

The quality of care is examined at for-profit,niche hospitals for two cardiac 

procedures: PTCA and pacemaker implant. Strong evidence is provided that 

favorable patient selection accounts for quality differences, as measured by riskadjusted 

mortality. Fixed-effect, logistic regression models are used to predict 

admission to specialty vs. community hospitals.

2 - Could Alexander Graham Bell Have Prevented the Spanish Flu? 

David Wheeler, University of Wisconsin - Parkside, 4108 

Washington Road, Apartment 202, Kenosha, WI, 53144, 

United States of America, david.i.wheeler@gmail.com, 

Corey Baumgardner, Abey Kuruvilla 

The goal of this research is to see if 911 call data can be used to predict the onset 

of influenza. Initial tests have shown a strong correlation between historical 

Influenza data from the Centers for Disease Control and Prevention (CDC) and 

proprietary 911 call data from FirstWatch, a real-time data monitoring business. 

We attempt to develop a model with 911 call data that can be used by public 

health authorities to predict the outbreak of flu and thus be able to take 

mitigatory actions. 

3 - An Empirical Analysis of the Value of IT-Based Services in the 

Health Care Sector 

Tridas Mukhopadhyay, Professor, Carnegie Mellon University, 385 

B Posner Hall, Tepper School of Business, Pittsburgh, PA, 15213, 

United States of America, tridas@cmu.edu, Robert Schwartz, 

Seung Hyun Kim 

We study physician relationship management activities in the health care 

context. We show that IT-enabled patient discharge summaries sent to referring 

physicians may have a positive or negative effect on future referrals depending 

on whether they are sent through preferred or non-preferred channel (e.g., 

secure email or fax). The unexpected negative effect highlights that IT-based 

relationship management activities may even backfire if they do not fully satisfy 

physicians’ preferences. 

4 - A Modeling Approach for Managing Operating Theatre Resources 

in Multi-Specialty Hospitals 

Devanath Tirupati, Professor, Melbourne Business School, 

200 Leicester Street, Carlton, 3053, Australia, d.tirupati@mbs.edu, 

Kannan Sethuraman 

We consider the problem of managing operating theatres (OTs) in multi-specialty 

hospitals treating two classes of patients – emergency and elective. The “in-suite” 

time during which the OT is occupied by a patient corresponds to the service 

time and is assumed to have a general distribution. In this paper we develop a 

stochastic model to evaluate policy alternatives for managing OTs and to assess 

their implications. Limited simulation experiments suggest that the model is 

fairly robust and can provide a quick assessment of alternative strategies. 

5 - Using System Dynamics to Project Demand and Plan Capacity 

for Community Health Care Services 

Christina Swindells-Nader, Health Systems Planning Advisor, 

Vancouver Coastal Health, 520 West 6th Avenue, Vancouver, BC, 

V5Z 4H5, Canada, christina.swindells-nader@vch.ca, Yixin Chen 

The system dynamics planning model explores community health care services 

provided by Vancouver Coastal Health as an integrated system. Its populationbased 

approach uses clients characteristics (e.g. age profile, complexity of health 

status) and their probability of switching service to explore service interactions 

and future demand. The demand projections under various scenarios enable the 

organization to monitor service performance and to allocate resources over time 

across services. 

■ SB12 

First Nations Negotiations in Canada: Action 

Research Using ESD and Smartsettle 

Sponsor: Group Decision and Negotiation Section: GDN 2009 


Chair: Ernest M. Thiessen, iCan Systems In., Smartsettle, 32182 

Astoria Crescent, Abbotsford, BC, V2T 4P5, Canada, 

ethiessen@smartsettle.com 

1 - First Nations Negotiations in Canada: The Problems 

June Quipp, Elder and former Chief, Cheam First Nation of BC, 

juneq@cheamband.com 

Time and money have been wasted with a tedious negotiation dance. Not 

enough progress has been made in spite of decades of negotiations. Complex 

negotiations that have focused on one issue at a time have too often resulted in 

an impasse, dashing hopes for a resolution that would be satisfactory to all 

parties. Something must be done to level the playing field and embrace a nonadversarial 

process that will build trust, enhance relationships and quickly lead to 

a fair and efficient outcome. 

2 - First Nations Negotiations in Canada: Applying ESD 

Melvin F. Shakun, New York University, New York, NY, 10012, 

mshakun@stern.nyu.edu 

Evolutionary Systems Design (ESD) is a game-theory based, general formal 

modeling/systems framework for problem solving and negotiation. With difficult 

negotiations, i.e., when a solution to a negotiation problem is not forthcoming, 


25 

problem restructuring (reframing) is a key approach. Restructuring may be 

supported using the ESD heuristic referral process. We will discuss how ESD can 

be applied in defining (designing) and solving specific First Nations negotiations 

involving multiple parties. 

3 - First Nations Negotiations in Canada: Action Research 

Using Smartsettle 

Ernest M. Thiessen, iCan Systems In., Smartsettle, 

32182 Astoria Crescent, Abbotsford, BC, V2T 4P5, Canada, 

ethiessen@smartsettle.com, Melvin F. Shakun 

Show plans for a parallel action research project that will demonstrate the 

application of Smartsettle to First Nations negotiations in Canada. Describe 

background negotiation and game theory as related to the First Nations context. 

Engage the audience in a hypothetical simulation that illustrates how Smartsettle 

can be applied to virtually eliminate the traditional negotiation dance, uncover 

hidden value, and encourage important relationship building. 

■ SB13 

Strategic Analysis of Brownfield 

Redevelopment Projects 



Chair: Keith Hipel, University Professor, University of Waterloo, 

Department of Systems Design Engineering, 200 University Avenue 

West, Waterloo, ON, N2L 3G1, Canada, kwhipel@engmail.uwaterloo.ca 

1 - Solving the Private Risk Problem in Brownfield Redevelopment 

Using Fuzzy Real Options 

Qian Wang, Doctoral Student, University of Waterloo, 

200 University Ave., Waterloo, ON, N2L 3G1, Canada, 

q4wang@uwaterloo.ca, Keith Hipel, Marc Kilgour 

Private risk, which is not market-priced, affects any realistic evaluation of the 

profitability of brownfield redevelopment. Fuzzy arithmetic can be incorporated 

into real option models to represent private risk. Explicitly acknowledging 

various kinds of uncertainties, fuzzy real options provide appropriate 

assessments. 

2 - Modeling the Epton Site Redevelopment Negotiations 

Majid Sheikhmohammady, Doctoral Student, University of 

Waterloo, 200 University Ave., Waterloo, ON, N2L 3G1, Canada, 

msheikhm@engmail.uwaterloo.ca, Keith Hipel, Marc Kilgour 

A new methodology for analyzing multilateral negotiations is used to investigate 

strategies in negotiations over redevelopment of the Epton brownfield site in 

Kitchener, Ontario. The results are promising: in particular, the most likely 

outcome identified by the model matches the actual outcome of the negotiations. 

3 - Combined Attitude-based Negotiation Decision Support System 

for Resolving Brownfield Disputes 

Saied Yousefi, Doctoral Student, University of Waterloo, 


yousefi2001@hotmail.com, Keith W. Hipel, Tarek Hegazy 

A negotiation methodology for strategic and tactical negotiation is proposed for 

resolving disputes in brownfield redevelopment. At the strategic level, the Graph 

Model for Conflict Resolution is employed to determine an overall agreement. At 

the tactical level, the overall agreement is studied in details using utility theory to 

determine concessions needed to reach a detailed solution. Also, the proposed 

negotiation methodology can take into account the negotiators’ attitudes. 

■ SB14 

SB14 

Fuzzy Optimization 


Chair: Ankur Das, Lecturer, Dayalbagh Educational Institute, 

DEI Technical College, Dayalbagh, Agra, Agra, UP, 282005, India, 

das_ankur@yahoo.com 

1 - Mixed Integer Probabilistic Vendor Selection: A Fuzzy Approach 

Saroj Koul, Assistant Professor, Acadia University, 307, 

Rhodes Hall, Acadia University, Wolfville, NS, B4P2R6, Canada, 

saroj.koul@acadiau.ca, Rakesh Verma 

We propose a mixed integer programming model to select vendors and 

determine the order quantities. The model considers: probabilistic nature of 

demand; lead time requirement for the parts; quality of supplied parts; cost of 

purchasing and transportation; fixed cost for establishing vendors; and the cost of 

receiving poor quality parts. The fuzzy approach is applied to solve problems and 

a numerical example considered to illustrate methodology.

SB15 

2 - Portfolio Management: A Fuzzy Set Based Approach for 

Adjusting Trade Size to Meet Financial Goals for Return and Risk 

Margaret Shipley, Professor of Management, University of 

Houston Downtown, 326 N Main Street, Houston, TX, 77002, 

United States of America, shipleym@uhd.edu, Frederick Shipley 

Fuzzy rules are developed where, depending on the antecedents, the sample 

trade size may be slightly or significantly decreased or increased to ensure that 

individual trades have limited risk and the sum of trades or portfolio have a 

different limited risk. Risk levels are adjusted to deliver desired rates of return. 

3 - Optimal Adjustment of Competence Set with Step Functions and 

Piecewise Linear Membership Functions 

Yvonne C.F. Hou, National Chiao Tung University, 1001 University 

Road, Hsinchu, Taiwan - ROC, yvonnehou@gmail.com, 

Po-Lung Yu 

In order to maximize the value of the arriving opportunities, corporate usually 

need to fine tune their competence set. In this article we discuss how to locate 

the optimal adjustment of the competence set when the cost coefficients are of 

step function and the production rates are with piecewise linear membership 

functions. We formulate the problems into integer linear programming models 

and report the relevant results of modelling and management implications. 

4 - An Adaptable Fuzzy Control Strategy for an SAFMS 

with Routing Flexibility 

Ankur Das, Lecturer, Dayalbagh Educational Institute, DEI 

Technical College, Dayalbagh, Agra, Agra, UP, 282005, India, 

das_ankur@yahoo.com, Rahul Caprihan 

This paper investigates the impact of information delays on the performance of a 

hypothetical SAFMS with routing flexibility in the presence of assumed design 

and control parameters through a simulation framework. A novel strategy is 

proposed to counter the impact of information delays that inherently manifest 

within SAFMSs. The performance of proposed strategy is compared with other 

conventional dispatching heuristics - NINQ & WINQ in combination with simple 

sequencing heuristics EDD & SPT. 

■ SB15 

Graph and Network Optimization I 


Chair: Laleh Behjat, Assistant Professor, University of Calgary, 2500 

University Drive, Calgary, AB, T2N1N4, Canada, laleh@ucalgary.ca 

1 - Explicit Sensor Network Localization Using Semidefinite 

Programming and Clique Reductions 

Nathan Krislock, University of Waterloo, Department of 

Combinatorics & Optimization, University of Waterloo, 

Waterloo, ON, N2L 3G1, Canada, ngbkrisl@math.uwaterloo.ca, 

Henry Wolkowicz 

The sensor network localization, SNL, problem consists of locating the positions 

of sensors, given only the distances between sensors that are within radio range 

and the positions of some fixed sensors (called anchors). Using the theory of 

Euclidean Distance Matrices, we relax SNL to a semidefinite programming, SDP, 

problem. By finding explicit representations of the faces of the SDP cone 

corresponding to intersections of cliques, we derive a technique that solves SNL, 

with exact data. 

2 - Multi-grid Applications for Placement and Routing Stages of VLSI 

Physical Design 

Laleh Behjat, Assistant Professor, University of Calgary, 

2500 University Drive, Calgary, AB, T2N1N4, Canada, 

laleh@ucalgary.ca, Logan Rakai 

VLSI physical design (PD) is the stage where the physical shape of an IC is 

determined. PD is usually performed in stages such as placement and routing. In 

these stages, a circuit is presented as a hypergraph. Because of the sizes of the 

circuits encountered today, many PD algorithms use clustering to reduce the 

complexity of circuits. Application of multigrid techniques for clustering during 

placement and clock routings of ICs is discussed in this talk. 

■ SB18 

OR Applications in the Forest Products Sector 

Cluster: Forestry 


Chair: David Martell, University of Toronto, Faculty of Forestry, 

33 Willcocks Street, Toronto, ON, M5S 3B3, Canada, 

martell@smokey.forestry.utoronto.ca 


26 

1 - Agent-based Simulation of a Lumber Supply Chain 

Sebastien Lemieux, FORAC Research Consortium - Université 

Laval, Pavillon Adrien-Pouliot (Office 3514), 1065, 

Av. de La Medecine, Quebec, QC, G1V 0A6, Canada, 

Sebastien.Lemieux@forac.ulaval.ca, Sophie D’Amours, 

Jean-Marc Frayret, Luis Antonio de Santa-Eulalia, 

Jonathan Gaudreault 

In this presentation, the architecture of an agent-based simulator will be 

presented. Specific agents have been designed to simulate the decisions and 

behaviors of the main business units of a lumber supply chain. Contract and spot 

customers are also modeled to permit a complete evaluation of different planning 

strategies. 

2 - Ease of Implementation vs Value Maximization in the Forest 

Bucking Pattern Selection 

Jean-Marc Frayret, Assistant Professor, Ecole Polytechnique de 

Montreal, Departement de Math. et Enie Industriel, 2500, 

Chemin de Polytechnique, Montreal, QC, H3T 1J4, Canada, 

jean-marc.frayret@polymtl.ca, Luc Lebel, Satyaveer S. Chauhan, 

Sophie D’Amours 

The pattern selection problem for the forest is very complex in terms of 

implementation if the objective is solely to maximize the fiber value. However, in 

practice, a small trade-off is possible between the fiber value and the ease of 

implementation. In this work, we present two scenarios of reducing the number 

of patterns for ease of implementation and compare the results. 

3 - Bootstrap Simulation and Response Surface Optimization in 

Forest Management 

Jingjing Liang, Assistant Professor, University of Alaska Fairbanks, 

P.O.Box 757200, Department of Forest Sciences, Fairbanks, AK, 

99775, United States of America, j.liang@uaf.edu, 

Robert Monserud, Joseph Buongiorno 

A method was proposed to simulate economic and ecological objectives of forest 

management alternatives by bootstrapping and then optimize management 

controls by response surface analysis. The effects were described with response 

surfaces to determine the optimal management alternatives, and relationships 

between various economic and ecologic criteria could then be mapped. 

4 - Harvesting Planning and Allocation of Products to Mills 

Bernard Gendron, Université de Montreal (DIRO) and CIRRELT, 

C.P. 6128, Succursale Centre-Ville, Montreal, QC, H3C 3J7, 

Canada, Bernard.Gendron@cirrelt.ca, Geraldine Gemieux, 

Jacques Ferland 

The problem we consider concerns annual harvesting planning. The main 

decision deals with the scheduling of the harvesting teams in order to satisfy 

demands at the mills. Harvesting areas and teams have their own characteristics, 

which have to be considered in the planning process. We develop a mixedinteger 

programming model to solve this problem. 

■ SB19 

Technology Management and Applications 


Chair: John Angelis, Rochester Institute of Technology, 

107 Lomb Memorial Drive, Rochester, NY, United States of America, 

jangelis@saunders.rit.edu 

1 - On the Efficiency of Technologically Innovative Activities: 

A Case of SMEs in Korea 

Moon-Soo Kim, Professor, Hankuk University of Foreign Studies, 

89 Wangsanri Mohyunmyon Cheoingu, Yongin, 449-791, 

Korea, Republic of, kms@hufs.ac.kr 

This paper assesses the SMEs technological innovativeness of Korean 

manufacturing, which is defined a ratio between input activities and their 

outputs such as product innovation, product improvement and process 

innovation, etc., on the 4 industry types classified by Pavitt (1984) using a DEA 

approach. In order to determine input variables of the DEA analysis, in 

particular, a logistic regression analysis between innovation outputs and various 

innovative activities is carried out. 

2 - Making Small to Medium Sized Enterprises More Competitive 

Majid Rad, Senior Lecturer, Edith Cowan University, 

270 Joondalup Dr., Joondalup, WA, 6027, Australia, 

m.rad@ecu.edu.au 

SMEs tend to have low overhead costs and high productivities. However, limited 

resources of SMEs in comparison with huge manufacturing firms make 

competition a difficult task in today’s competitive markets. A low-cost virtual 

integration of SMEs could help improve competitiveness of SMEs. It allows local 

SMEs to share resources to form a large and resourceful organization. Thus SMEs 

become as resourceful as large manufacturing firms while maintaining low 

overhead costs and high productivities.

3 - Innovation and India International: An Individualistic Perspective 

on Innovation and Growth 

Appa Rao Korukonda, Professor & Chairman, Department of MIS 

& CIS, College of Business, Bloomsburg University of PA, 400 East 

Second Street, Sutliff Hall, Room No. 224, Bloomsburg, PA, 

17815, United States of America, arkorukonda@gmail.com 

India has been steadily emerging as an economic giant to be reckoned with in 

the world economic scene. While part of it has been accomplished through 

policy measures, much of it can be attributed to the initiative, aggressiveness and 

sheer innovation of the educated youth to look beyond national borders to 

overcome problems of infrastructure and corruption at home. This paper argues 

for a focus on individual variables to understand innovation and learn from the 

Indian experience. 

4 - Optimal Quality and Price-setting for a New 

Technologically-advanced Product 

John Angelis, Rochester Institute of Technology, 

107 Lomb Memorial Drive, Rochester, NY, 

United States of America, jangelis@saunders.rit.edu 

When launching a new product, competing firms set price and quality levels to 

attract customers and thus maximize profits. However, if the product is 

technologically advanced, firms face a market in which customers are segmented 

by innovativeness and base purchase decisions on their preferences for quality 

and net value. We analyze a closed-loop Stackelberg game with perfect 

information to determine optimal strategies. 

■ SB20 

Financial Engineering 


Chair: Timothy Flynn, President, Flynn Consulting Services, 1000 

Brantwood Ave, Elk Grove V, IL, 60007, United States of America, 

tjfphd@aol.com 

1 - A Dynamic MIP Approach to Multi-Objective 

Portfolio Optimization 

Bartosz Sawik, AGH University of Science & Technology, Faculty 

of Management, Department of Applied Computer Science, al. 

Mickiewicza 30, Krakow, PL-30-059, Poland, 

B_Sawik@yahoo.com 

Dynamic approach and MIP formulation is proposed for a multi-objective 

portfolio optimization over many investment periods. The objective is to allocate 

wealth on securities to maximize the portfolio expected return with the 

threshold of the probability that the return is not less than a required level. The 

auxiliary objective is the minimization of risk probability of portfolio loss. A real 

data from stock exchange with 3500 historical daily quotations were used for 

computational experiments. 

2 - A Regime-switching Approach to Valuing Weather Options 

Reaz-us salam Elias, PhD Student, Department of Mechanical and 

Industrial Engineering, Ryerson University, 350 Victoria Street, 

Toronto, ON, M5B 2K3, Canada, m3elias@ryerson.ca, Liping Fang, 

Mohamed Wahab Mohamed Ismail 

A regime-switching approach is presented to value weather options. Historical 

data are used to model the seasonality and variability of temperature. Companies 

in energy, agriculture, construction, and entertainment sectors can hedge their 

risks associated with uncertain weather conditions using weather derivatives. 

3 - Bias Reduction of the Least-squares Monte Carlo Estimators of 

American Option Values 

Kin Hung Kan, PhD Student, The University of Western Ontario, 

102 - 15, Jacksway Crescent, London, ON, N5X3T8, Canada, 

kkan8@uwo.ca, R. Mark Reesor 

Whitehead, Davison and Reesor (2008) introduce a general bias reduction 

technique for pricing American options by Monte Carlo methods based on large 

sample theory that corrects the stochastic tree estimators. We apply this 

technique to the popular least-squares Monte Carlo estimators using well-known 

results about the large sample properties of least-squares estimators. We derive 

an expression for bias-corrected estimators. Numerical results show the 

effectiveness of this technique. 


27 

4 - Optimal Investment Strategy to Maximize Total Dollars 

Contributed to a 401(k) Savings Account 

Timothy Flynn, President, Flynn Consulting Services, 1000 

Brantwood Ave, Elk Grove V, IL, 60007, United States of America, 

tjfphd@aol.com, Jerry Slusiewicz 

The amount of “company match” contributions made to a 401(k) retirement 

savings plan is a function of the investors personal contribution strategy as well 

as the company plan parameters. Sub-optimal contributions are especially costly 

to those who contribute the maximum amount allowed by the IRS. Proof of an 

optimal class of contribution strategies is given. Practical implications for the 

401(k) or similar investor are discussed. 

■ SB21 

SB21 

Decision Support Systems 


Chair: Ada Barlatt, University of Michigan, 1205 Beal Avenue, 

Ann Arbor, MI, 48109, United States of America, abarlatt@umich.edu 

1 - Recommendations for Increasing the Use of Resource Allocation 

Models in Public Health 

Arielle Lasry, CDC, 1600 Clifton Road NS-E4B, Atlanta, GA, 

30333, Canada, ftn9@cdc.gov, Anke Richter, Frithjof Lutscher 

Resource allocation models have not had a substantial impact on public health 

funding decisions. We highlight several difficulties encountered in attempts to 

implement such models including: model complexity, data requirements, 

multiple stakeholders, funding issues and political and ethical considerations. We 

then make recommendations as to how these difficulties may be overcome. 

2 - A Decision Support System for Personalized Advertisement 

Kemal Kilic, Asst. Professor, Sabanci University, Orhanli, Tuzla, 

Istanbul, 34956, Turkey, kkilic@sabanciuniv.edu 

A company develops an online virtual platform where users interact with others. 

The company’s income is from the adds displayed at virtual locations. A 

personalized advertisement system is developed in order to increase revenues. A 

two phased framework is proposed. The first phase matches the viewers’ profiles 

to the requirements of the advertisers. The second phase identifies the 

appropriate advertisement that will be displayed to the user at an advertisement 

location based on an index. 

3 - A Linear Optimal Method Applies to Global Supply Chain 

Support System 

Yao Huei Huang, PhD Student, National Chiao Tung University, 

Taiwan, #1001,Dashuei Rd., Hsinchu City, Hsinchu, Taiwan - 

ROC, yaohuei.huang@gmail.com, Han Li Li 

The materials cost is increasing and sales profit is decreasing in recent years. For 

this reason, a lot of enterprises constantly utilize decision support system to solve 

their problems. This study proposes a linear mathematic model and takes the 

optimal solutions out by developing a decision support system. In here, this study 

embedded the Geographic Information Map (i.e. Google Map) technology in our 

system and exactly display the optimal information flows of the transportation 

and logistics. 

4 - A Decision Support System for Health Care Based on 

Multi-Constraints 0-1 Integer Programming 

Tomoko Kashima, Graduate School of Information Science and 

Technology, Osaka University, 2-1 Yamadaoka, Suita, Osaka, 

565-0871, Japan, t-kashima@ist.osaka-u.ac.jp, Hiroaki Ishii 

This paper focuses on everyday meals close to our life, and proposes a wellbalanced 

menu planning system as a preventive measure of lifestyle-related 

diseases. The system works on Web server built by Apache, MySQL and PHP. For 

the menu planning, a genetic algorithm is applied by understanding this problem 

as a 0-1 integer programming. For the menu planning, a genetic algorithm is 

applied by understanding this problem as a multidimensional 0-1 integer 

programming. 

5 - Models and Algorithms for Student Project Assignment 

Ada Barlatt, University of Michigan, 1205 Beal Avenue, Ann 

Arbor, MI, 48109, United States of America, abarlatt@umich.edu 

We discuss the problem of matching students to projects, where we must select 

projects to staff and assign students to projects. We consider a case where 

students have several characteristics and projects several have requirements. 

We consider multiple objectives simultaneously (e.g. minimize average ranking 

assigned and minimizing the number of projects staffed). We present a 

formulation and conclude with a discussion of the decision support tool 

developed to solve an instance of this problem.

SC01 

Sunday, 12:30pm - 2:00pm 

■ SC01 

Air Traffic Flow Management 



Chair: David Lovell, Associate Professor, University of Maryland, 

1173 Martin Hall, College Park, MD, 20742, United States of America, 

lovell@umd.edu 

1 - Evaluating a New Formulation for Large-Scale Air Traffic 

Flow Management 

Andrew Churchill, Graduate Research Assistant, University of 

Maryland, 1173 Martin Hall, College Park, MD, 20904, United 

States of America, churchil@umd.edu, David Lovell, Michael Ball 

We introduce a new aggregate air traffic flow management model. Our integer 

program builds on the model proposed by Bertsimas, Lulli and Odoni. The new 

formulation employs a set of general airspace constructs that allow more 

complex elements to be represented. In addition, delay propagation effects are 

carefully modeled. We provide experimental results that indicate both the 

computational effectiveness of this model and its new features, as well as its 

potential for decision support. 

2 - Strategic Scheduling and Fleet Selection 

Megan Smirti, PhD Candidate, UC Berkeley, 109 McLaughlin Hall, 

Berkeley, CA, 94108, United States of America, 

msmirti@berkeley.edu 

This research presents a methodology to select and schedule aircraft to minimize 

the sum of private and social costs. To select and schedule vehicles, individual 

models for each cost component dependent on vehicle type and frequency are 

combined into the total logistics cost. The contribution of this research is the 

development of a heterogeneous vehicle scheduling and fleet selection 

methodology to serve heterogeneous passengers based on the private and social 

total logistics cost function. 

3 - Near Real-time Air Traffic Conflict Resolution through Speed and 

Flight Level Control 

Senay Solak, University of Massachusetts, Isenberg School of 

Management, Amherst, MA, 01003, United States of America, 

solak@som.umass.edu, Adan Vela, William Singhose, 

John-Paul Clarke 

There exist several conflict resolution algorithms that have been proposed in the 

literature. Most algorithms either consider the problem in two dimensions or 

require significant computational effort. To remedy this shortcoming, we propose 

a mixed integer programming based algorithm that considers multiple flight 

levels, and also runs in near real-time. Further, we investigate some stochastic 

aspects of the underlying problem. 

■ SC02 

Combinatorial Optimization II 


Chair: Hacer Guner Goren, PhD Candidate- Research Assistant, 

Dokuz Eylul University, Department of Industrial Engineering, 

Tinaztepe Yerleskesi Buca, Izmir, 35160, Turkey, 

hacer.guner@deu.edu.tr 

1 - Experimental Analysis of Heuristics for Three Dimensional 

Assignment and Transportation Problems 

Arman Kaveh, Mathematics Master’s Candidate, Simon Fraser 

University, Central City, 250-13450 102nd Ave, Surrey, BC, 

V3T 0A3, Canada, akaveh@sfu.ca, Abraham Punnen 

In this paper we discuss different formulations of the Three Dimensional 

Assignment Problem (3AP) and the related Three Dimensional Transportation 

Problem (3TP). 3AP and 3TP are known to be NP-hard. A comparative study of 

the current heuristics and approximation algorithms is presented as well as 

proposed methods by the authors. We apply our algorithms to the benchmark 

instances and provide computational results. 

2 - A Strategy for Tabu Search Using Vocabulary Building Applied to 

the SONET Ring Assignment Problem 

Werner Kleyson da Silva Soares, MSc, UFPE, Av. Blumenau, 

2926, conj. Sta. Catarina, Natal, RN, 59112410, Brazil, 

werner_soares@hotmail.com, Dario Jose Aloise, Wagner Oliveira 


28 

The SONET Ring Assignment Problem deals with grouping localities in the shape 

of rings to minimize total net cost. This is a NP-hard Class problem. It can be 

solved through Metaheuristics. We used Tabu Search while keeping a set of elite 

solutions that is used in a Vocabulary Building process. Approaches had been 

implemented considering the use of vocabulary parts deriving from that set or 

not. It was verified that the one which used only vocabulary parts from the set 

presented better results. 

3 - An Evolutionary Algorithm to the One-dimensional Cutting Stock 

Problem with Multiple Stock Lengths 

Adriano Heis, CEFET-SC Centro Federal de Education Tecnologica 

de Santa Catarina, Av. Mauro Ramos, no950, Centro, Florianpolis, 

88020-300, Brazil, adriano.heis@gmail.com, Silvio A. de Araujo, 

Ademir Aparecid Constantino 

This paper deals with the one-dimensional integer cutting stock problem, which 

consists of cutting a set of available bars in stock in order to produce ordered 

smaller items in such a way as to optimize a given objective function. We studied 

the case in which there are several types of bars in stock available in limited 

quantities. A new heuristic method based on the evolutionary algorithms 

concepts was proposed. The results this heuristic are compared with other 

methods from the literature. 

4 - A Genetic Algorithm Approach for the Capacitated Lot Sizing 

Problem with Set-up Carryover 

Hacer Guner Goren, PhD Candidate- Research Assistant, Dokuz 

Eylul University, Department of Industrial Engineering, Tinaztepe 

Yerleskesi Buca, Izmir, 35160, Turkey, hacer.guner@deu.edu.tr, 

Raf Jans, Semra Tunali 

This production planning problem deals with multiple products produced on a 

single machine. A setup is assumed to be carried over from one period to the 

next and the partial sequencing of the first and last product is incorporated. A 

genetic algorithm approach is proposed to search over the binary variables of setup 

and carry-over variables. Each solution visited is treated as sub-problem and 

the corresponding values of the inventory and lot size variables are determined 

by linear programming. 

■ SC03 

Graph and Network Optimization II 


Chair: Brad Woods, Simon Fraser University, 250-13450 

102 Avenue, Surrey, BC, Canada, bdw2@sfu.ca 

1 - Computational Study of Heuristics for Asymmetric and 

Constrained Bottleneck TSP 

John LaRusic, Graduate Student, Simon Fraser University Surrey, 

250 - 13450 102 Avenue, Surrey, BC, V3T0A3, Canada, 

jal21@sfu.ca, Abraham Punnen 

The bottleneck traveling salesman problem (BTSP) seeks the Hamiltonian tour 

whose maximal edge cost is minimized. We propose lower bound algorithms and 

heuristics for the asymmetric BTSP, as well as BTSP with an additional constraint 

on the tour length. A summary of computational results is also presented. 

2 - Coloring Graphs to Avoid Monochromatic Cycles 

Fabrice Talla Nobibon, Student, KU Leuven, Naamsestraat 69, 

Leuven, 3000, Belgium, Fabrice.TallaNobibon@econ.kuleuven.be, 

Roel Leus, Frits Spieksma 

We consider the problem of deciding whether a given directed graph can be 

vertices partitioned into two acyclic subgraphs. We prove that this problem is 

difficult even to find an approximate solution. We present an exact branch-andcheck 

algorithm able to solve the problem of considerable size. 

3 - Coloured Petri Nets for Steel Plant 

Piotr Lebkowski, Professor, AGH University of Science and 

Technology, Mickiewicza 30, Krakow, 30-059, Poland, 

kamienicxka@poczta.fm 

A Petri coloured net applied to the modeling of the material flow at the 

production plant in steelworks is a effective research tool. This paper presents a 

Petri net expanded with the attribute vectors of places and transitions, as well as 

the logical rules of transition firing and the procedures that update the attribute 

values. Owing to such expansion, we can observe the properties of the streams 

that flow through the system. e.g. the cost and the project completion time. 

4 - Optimization Problems on Extensions of Halin Graphs 

Brad Woods, Simon Fraser University, 250-13450 

102 Avenue, Surrey, BC, Canada, bdw2@sfu.ca, Nabil Belacel, 

Abraham Punnen 

We define several classes of generalized Halin graphs. We discuss the structural 

properties of these graphs and present results of combinatorial optimization 

problems when restricted to these graphs. In particular, we give a linear time 

algorithm which solves the optimal matching problem.

■ SC04 

Modeling and Computation in Stochastic 

Programming 

Cluster: Optimization/Stochastic Programming 


Chair: Alan King, IBM, P.O. Box 218, Yorktown Heights, NY, 10598, 

United States of America, kingaj@us.ibm.com 

1 - Recent Changes to the Optimization Services Project to Support 

Stochastic Programming 

Horand Gassmann, Dalhousie University, Faculty of Management, 

6100 University Avenue, Halifax, NS, B3H 3J5, Canada, 

Horand.Gassmann@DAL.CA, Jun Ma, Kipp Martin 

Optimization Services (OS) is a COIN-OR project to support the modelling and 

solution of a wide range of optimization problems both via local servers and over 

a network. This talk describes recent additions to the system, particularly as they 

relate to supporting stochastic programming and the representation of 

uncertainty. 

2 - New Stochastic Programming Enhancements for the MPL 

Modeling Language 

Bjarni Kristjansson, President, Maximal Software, Inc., 2111 

Wilson Boulevard, Suite 700, Arlington, VA, 22201, 

United States of America, bjarni@maximalsoftware.com 

Formulating stochastic models in a modeling language and deploying it to endusers 

has long been a challenge in practice. In this presentation we will review 

how both scenario-based and independent variables stochastic models can be 

effectively formulated in a modeling language, such as MPL. Several 

formulations of SP models will be demonstrated. 

3 - COIN-OR Experiment on Distributed Stochastic 

Programming Solver 

Michael Chen, Post Doc Researcher, IBM T.J. Watson Research 

Center, 1101 Kitchwan Road, Yorktown Heights, NY, 10598, 

United States of America, sychen@us.ibm.com, Alan King 

We present progress on a distributed stochastic programming solver based on 

Benders’ decomposition. The distributed solver couples with FlopC++ and SMI so 

as to generate and solve subproblems “locally” on each processor. Also there are 

no optimality cuts generated in this interior point method solver, hence the 

communication cost is very low. 

4 - A Stochastic Programming Approach for Planning Horizons of 

Infinite Horizon Capacity Planning 

Kai Huang, Assistant Professor, Binghamton University, State 

University of New York, School of Management, Binghamton 

University, Binghamton, NY, 13902, United States of America, 

huang@binghamton.edu, Shabbir Ahmed 

Planning horizon is a key issue in production planning. We study the planning 

horizon of capacity planning problems within the framework of stochastic 

programming. We consider an infinite horizon stochastic capacity planning 

model involving a single resource, linear cost structure, and discrete distributions 

for general stochastic cost and demand data (non-markovian and nonstationary). 

We give sufficient conditions for the existence of an optimal solution. 

■ SC05 

Airline Applications: Sloan Session II 



Chair: Amy Cohn, University of Michigan, Ind & Operations Engineer, 


amycohn@umich.edu 

1 - Novel Methods for Reducing Passenger On-Aircraft 

Ground Delays 

Marcial Lapp, University of Michigan, Industrial & Operation 

Engineering Department, 1205 Beal Ave, Ann Arbor, MI, 48109, 

United States of America, mlapp@umich.edu, Amy Cohn 

Lengthy delays in which boarded passengers remain on the ground but away 

from the gate have led to much scrutiny and potential legislation in the U.S. In 

this student-based research, we seek “out of the box” methods to reduce the 

occurence of such events by intelligently using gates, staging areas, and “parking 

positions.” Simulation is used to compare and contrast different heuristic policies. 


29 

2 - Network Design for Code Sharing 

Diego Klabjan, Associate Professor, Northwestern University, 

2145 Sheridan Road, Evanston, IL, 60208, United States of 

America, d-klabjan@northwestern.edu, Milind Sohoni, 

Sumit Kunnumkal, Sergey Shebalov 

An airline from an alliance faces the daunting task of code sharing its flights. The 

challenge mainly lies in the sheer size of the itineraries that can be sold on the 

entire network of all alliance partners. We present a network design approach 

based on discrete choice modeling of passengers’ utilities. 

3 - Dynamic Constraint Aggregation for Crew Pairing Problem 

Issmail Elhallaoui, GERAD, C.P. 6079, Succ. Centre-Ville, 

Montreal, Qc, H3C 3A7, Canada, issmail.Elhallaoui@gerad.ca, 

Francois Soumis, Guy Desaulniers, Hatem Ben Amor 

Dynamic constraint aggregation is a new approach introduced to speed up the 

column generation method when solving degenerate set partitionig problems. 

This approach profits from degeneracy to reduce significantly the size of the 

master problem and the number of iterations. Starting from a good heuristic 

solution leads to big savings in solution time. Preliminary tests on some hard 

crew pairing problems are very encouraging even if we used the trivial initial 

solution: “follow the aircraft”. 

4 - Aircrew Pairings with Possible Repetitions of the Same 

Flight Number 

Mohammed Saddoune, PhD Student, Ecole Polytechnique and 

GERAD, C.P. 6079, Succ. Centre-Ville, Montreal, H3C 3A7, 

Canada, mohammed.saddoune@gerad.ca, Guy Desaulniers, 

Francois Soumis 

In the industry, the crew pairing problem is usually solved by the traditional 

three-phase approach: daily, weekly, and monthly problems. Based on real data, 

the first contribution is to show that this approach is less efficient compared to 

rolling horizon approach when the data are not regular. The second one is to 

show even if the data are completely regular then a direct optimization on the 

weekly problem without exploiting the daily solution produces better solutions. 

■ SC06 

SC06 

Timetabling and Scheduling 


Chair: Jaime Mora, Head, Graduate Program in Industrial Engineering, 

Tecnologico de Monterrey, Campus Estado de Mexico, Carr. Lago de 

Guadalupe, km 3.5, Atizapon, 52926, Mexico, jmora@itesm.mx 

1 - Development of Genetic-based Machine Learning for Network 

Intrusion Detection (GBML-NID) 

Wafa’ Al-Sharafat, Al al-Bayt University, Jordan-Zarqa-dulai 

P.O 13136 Box 180, Zarqa, 13136, Jordan, wafa@aabu.edu.jo 

This paper will incorporate different techniques to detect intrusion from normal 

packet.Among several techniques,Steady State Genetic-based Machine Leaning 

Algorithm(SSGBML)will be used.Steady State Genetic Algorithm(SSGA) is used 

as a discovery mechanism.where ZCS plays the role of detector by matching 

incoming message with classifiers to determine if the message normal then 

receiving feedback from environment.Within SSGA, Fuzzy Logic will be 

implemented on crossover and mutation. 

2 - Integrated Berth and Quay Crane Allocation to Container Vessels 

Jiyin Liu, Professor of Operations Management, Loughborough 

University, Business School, Loughborough, LE11 3TU, 

United Kingdom, j.y.liu@lboro.ac.uk, Zheng Tong 

We formulate an integer programming model for the integrated berth and quay 

crane allocation problem at container terminals with multiple berth areas. The 

model considers remaining services carried over from the previous planning 

period as well as the vessels to arrive. The service time of a vessel is dependent 

on its workload, the berth area it is allocated to and the number of quay cranes 

assigned to it. Numerical examples are provided to demonstrate the model 

effectiveness. 

3 - Incorporating the Competition Effects on an Airline 

Itinerary Design 

Jenny Diaz Ramirez, Assistant Professor, ITESM Campus Toluca, 

Eduardo Monroy Cardenas 2000 San antonio, Toluca, 50110, 

Mexico, jenny.diaz@itesm.mx, Yaneth Garzon Sanchez 

Starting with an airplane routing algorithm that selects routes satisfying 

maintenance constraints and defines the airline itinerary, we include a dynamic 

utility function that incorporates the effects of the competition produced by the 

flights already selected in previous routes. This function is penalized by another 

function that considers the changes of the market’s demand within related time 

windows.

SC07 

4 - The Logic of Multiple Shifts in K-12 Public Schools and the 

Optimal Reassignment of Teachers to Improve Process Quality: 

The Case of the Dominican Republic 

S Claudina Vargas, Complex Systems Optimization Lab, 

Northampton, MA, scvargas@cosola.org 

This work deals with the design of a simulation and optimization model to study 

optimal reassignment of teachers within and between public K-12 school centres 

in the Dominican Republic. Public primary and secondary education in the DR 

are organized in shifts to accommodate increasing demand. A teacher generally 

works multiple shifts within a school or between schools and may teach different 

subjects at/or different levels per shift. This strategy reduces the effective school 

day to less than three hours per shift without reducing class size. In addition, it 

practically eliminates time for class preparation and individualized student 

attention. Thus, it limits quality improvement. The purpose of this work is to 

develop tools to evaluate virtual scheduling alternatives and teacher 

reassignments that can improve process quality while also minimizing cost. 

5 - A Hybrid Simulated Annealing-genetic Algorithm for Course Time 

Tabling Problem 

Jaime Mora, Head, Graduate Program in Industrial Engineering, 

Tecnologico de Monterrey, Campus Estado de Mexico, 

Carr. Lago de Guadalupe, km 3.5, Atizapon, 52926, Mexico, 

jmora@itesm.mx, Juan Frausto-Solis, Miguel Gonzalez Mendoza 

Course timetabling problem (CTP) consists on assigning a set of courses into a 

limited group of timeslots. Among the huge variety of algorithms proposed to 

solve it, Simulated Annealing (SA) is one with the best performance, eventhoug 

not always find the optimal solution. In this paper a new hybrid algorithm 

named SA-GA is presented, it uses SA with Genetic Algorithms. This 

hybridization uses a Markov tuning approach with a good exploration feature 

given by the genetic method. 

■ SC07 

Tutorial: Trajectory-based Methods 



Chair: Michel Gendreau, CIRRELT/University of Montreal, C.P. 6128, 

succ. Centre-ville, Montreal, QC, H3C 3J7, Canada, 


1 - An Introduction to Trajectory-based Heuristics 

Michel Gendreau, CIRRELT/University of Montreal, C.P. 6128, 

succ. Centre-ville, Montreal, QC, H3C 3J7, Canada, 


We present an overview of the main heuristic methods that rely on the local 

search paradigm and follow a trajectory to explore the solution space of 

problems: classical Local Search, Simulated Annealing, Tabu Search, Variable 

Neighborhood Descent, etc. Applications of these approaches in the fields of 

location and vehicle routing will also be presented and discussed. 

■ SC08 

Health Care Applications 


Chair: Nima Behkami, Portland State University, Dept Engineering, 

Portland, United States of America, behkamin@hotmail.com 

1 - Real Options Models for Research Resource Planning in the 

Pharmaceutical Industry 

Jiun-Yu Yu, Dr., Department of Business Administration, National 

Taiwan University, 9F, Building 1, College of Management, No. 1, 

Section 4, Roosevelt Road, Taipei, Taiwan - ROC, 

jyyu@ntu.edu.tw 

This paper aims to contribute to the task of improving the efficiency of preclinical 

research by building stochastic models with nonlinear optimization and 

Real Options Analysis. The models investigate the numbers of scientists to be 

allocated to the successive, and where appropriate repeated, stages of a preclinical 

new drug discovery project so as to increase its profitability. The number 

of distinct series of compounds to be explored in the search for candidate drugs is 

also investigated. 


30 

2 - Eliciting Patient Preferences: An Inverse MDP Approach 

Lisa Maillart, Assistant Professor, University of Pittsburgh, 1030 

Benedum Hall, Pittsburgh, PA, 15261, United States of America, 

maillart@pitt.edu 

We propose a new approach for estimating patient preferences over health states. 

The goal is to find the set of health values “closest” to the non-quality adjusted 

estimates such that the patient’s observed behavior is optimal. An application 

involving the optimal timing of a living-donor liver transplant is used to illustrate 

the proposed methods. 

3 - Measuring Health, Life Style and Stress as Latent Variables 

Fredrik Odegaard, Ivey School of Business, University of Western 

Ontario, 1151 Richmond Street, London, ON, N6A 3K7, Canada, 

fodegaard@ivey.uwo.ca, Pontus Roos 

In this paper we present a methodology based on Structural Equation Models to 

study the interaction between health, life style and stress of an individual. Health 

refers to the physical and mental condition, life style refers to an individuals 

ability and desire to perform daily life activities, and stress refers to the persons 

environment. We illustrate the methodology with results from a co-hort study of 

2000 Swedish manufacturing workers. 

4 - Modeling Healthcare Information Technology (HIT) Adoption 

Using Systems Dynamics 

Nima Behkami, Portland State University, Department 

Engineering, Portland, United States of America, 

behkamin@hotmail.com, Tugrul Daim, David Dorr 

Healthcare organizations face barriers to learning in complex systems. Successful 

approaches to learning require formal models & simulation methods. Using 

Systems Dynamics we have developed a series of insightful adoption & 

dissemination models for a HIT Care Management application. These models 

allow us to influence potential adopters and facilitate them through the 

persuasion, decision, implementation and confirmation stages of the innovation 

decision process. 

■ SC09 

Supply Chain Performance I 


Chair: Yavuz Acar, Bogazici University, Istanbul Turkey, Istanbul, 

Turkey, yavuz.acar@boun.edu.tr 

1 - Empirical Study of Profitability and Firm-specific, 

Macro-economic Factors of Food Sector in Pakistan 

Nousheen Tariq Bhutt, International Islamic University, Islamabad, 

SECTOR H/10, Islamabad, Pakistan, imaantariq@gmail.com 

The aim of this study is to examine the effect of macroeconomic factors on 

profitability of food sector in Pakistan. In this research, I have selected a sample 

of 12 Pakistani food sector firms listed on Karachi Stock Exchange for a period of 

5 years from 2002-2006.I have studied the effect of different variables including 

debt to equity, tangibility, growth, size and food inflation the on the profitability 

of Pakistani firms. Correlation, and regression method was used for analysis. I 

found that there is a significant negative relationship between size and 

profitability. I also found that there is a positive relationship between tangibility 

and growth of the firm and its profitability but is insignificant relationship. There 

is also an insignificant negative relationship between debt to equity ratio of firm 

and its profitability. I found that there is an insignificant positive relationship 

between macroeconomic factors and profitability. 

2 - Impact of Forecasting Method Selection on 

Supply Chain Performance 

Youqin Pan, Student, University of North Texas, 1155 Union 

Circle #305249, Denton, TX, 76203, United States of America, 

Youqin.Pan@unt.edu, Robert Pavur 

This paper investigates the impact of forecasting method selection on a supply 

chain consisting of one supplier and one retailer under different demand patterns 

via simulation.The findings can help supply chain managers select proper 

forecasting methods to improve supply chain performance. 

3 - Coordination Among Producer, Distributor, and 3PL Provider in a 

Fresh Product Supply Chain 

Jian Chen, Professor, Tsinghua University, School of Economics 

and Management, Beijing, 100084, China, 

jchen@tsinghua.edu.cn, Xiaoqiang Cai, Yongbo Xiao, Xiaolin Xu 

We consider a supply chain in which a producer supplies a fresh product to a 

distributor at a distant export market, with the product transported through a 

3PL provider. The transportation time is uncertain and the product may decay 

and deteriorate during the transportation. The transportation cost and loss are to 

be borne by the producer. Incentive schemes are proposed to motivate the 

coordination of the chain members. We show that the contracts proposed are 

incentive compatible.

4 - Forecasting Model Selection Based on Operational Benefits for a 

Global Specialty Chemicals Supply Chains 

Yavuz Acar, Bogazici University, Istanbul Turkey, Istanbul, Turkey, 

yavuz.acar@boun.edu.tr, Everette Gardner, Sukran Kadipasaoglu 

This paper evaluated alternative forecasting models based on operational 

performance in a global specialty chemicals supply chain. The forecasting models 

included in this study are simple exponential smoothing, additive trend, damped 

additive trend, and damped multiplicative trend. Our results underscore the 

importance of incorporating all relevant cost and customer service measures into 

the forecasting model selection process. 

■ SC10 

Inventory Control and Management 



Chair: Hong Chen, Alumni Professor in Supply Chain Management, 

Sauder School of Business, 2053 Main Mall, Vancouver, BC, V6T 1Z2, 

Canada, Hong.Chen@sauder.ubc.ca 

1 - Joint Replenishment and Re-distribution in Supply Networks 

David D. Yao, Professor, Columbia University, IEOR Dept, New 

York, NY, 10027, United States of America, yao@columbia.edu 

We demonstrate that two decisions in a wide range of supply networks, the 

initial replenishment quantities and the in-period redistribution necessitated by 

supply-demand imbalance, contribute to the overall value function in 

qualitatively different ways, with a separation of scales: the contribution of the 

former is in the order of the demand rate; whereas that of the latter is in the 

lesser, square-root order of the demand rate. 

2 - Demand Shaping through Bundling: A Dynamic Multiproduct 

Inventory-pricing Model 

Jeannette Song, Professor, Duke University, Fuqua School of 

Business, Duke University, Durham, NC, 27708, United States of 

America, jingsheng.song@duke.edu, Zhengliang Xue 

We study joint optimal inventory, pricing and bundling decisions over a finite 

horizon. We show that component complementariness, cost structure, initial 

inventory and demand uncertainty all drive the bundling strategy. For vertically 

differentiated products, the desired bundling composition depends on the ratio of 

cost gap to quality gap. 

3 - The Impact of the Transfer Pricing Method for Tax Purposes on 

the Operational Decisions of a Firm 

Kun Soo Park, Columbia University, IEOR Department, 

500 West 120th Street, New York, United States of America, 

kp2143@columbia.edu, Woonghee Tim Huh 

Since the transfer price of intra-firm transactions affects the profits of the subdivisions 

of a firm, the accounting of transfer pricing is regulated by tax 

authorities. We consider two popular transfer pricing methods for tax purposes, 

and compare their impacts on the operational decisions of a firm. 

4 - Joint Pricing and Inventory Decision in an Inventory System with 

General Demand Function 

Hong Chen, Alumni Professor in Supply Chain Management, 

Sauder School of Business, 2053 Main Mall, Vancouver, BC, 

V6T 1Z2, Canada, Hong.Chen@sauder.ubc.ca, Zhan Zhang 

We consider the optimal pricing and inventory replenishment decision in an 

inventory system with the random demand dependent on price. The objective is 

to maximize the total expected discounted profit. When the demand is concave 

in price, a base-stock list-price policy has been shown optimal. However, many 

theoretic and empirical models suggest demand not be concave in price. In this 

talk, we explore to what extend BSLS policy is still optimal without the concave 

assumption. 

■ SC11 

Health Care Operations and Analysis 

Sponsor: Health Applications Section 


Chair: John Blake, Dalhousie University, Halifax, NS, B3J 2X4, 

Canada, john.blake@ns.sympatico.ca 

1 - Platelet Ordering: A Random Walk with Ponce de Leon 

John Blake, Dalhousie University, Halifax, NS, Canada, 

john.blake@dal.ca, Nancy Heddle 

The platelet ordering problem is difficult to solve because of the computational 

complexity created by the short shelf life of platelets. A number of approaches 

have been advanced based on cost minimization. However, in practice, cost 


31 

minimization is questionable, since it is difficult to evaluate the cost of a shortage 

or an outdate. In this talk we suggest a simple, analytical approach based on 

finding acceptable outdate and shortage rates. 

2 - A Reusable Framework for Modelling Diagnostic Waitlists 

in Nova Scotia 

Sean Sangster, Dalhousie University, 112-456 Parkland Drive, 

Halifax, NS, B3S1P8, Canada, sean.sangster@dal.ca 

A reusable framework has been created to model diagnostic waitlists in Nova 

Scotia. This framework will be implemented as part of a desktop forecasting tool 

for clinic managers. The tool will predict waitlist size, informing managers of 

potential capacity shortages in time to respond. 

3 - Evaluating Diagnostic Tests 

Steve Gallivan, s.gallivan@ucl.ac.uk, Martin Utley 

Diagnostic tests that rely on a biochemical assay measurement being above a 

critical value are often evaluated using ROC curves. Using a range of potential 

critical values, one plots sensitivity versus (1 - specificity) to summarise 

diagnostic characteristics of the test. Statistics can also be carried out by analysing 

the ëarea under the curveí (AUC), the assumption being that the greater the 

AUC, the better the test. We discuss potential flaws in this apparently reasonable 

method of analysis. 

4 - Modelling to Test Assumptions Concerning the Benefit of 

Thoracic Surgery 

Martin Utley, University College London, Gower Street, London, 

United Kingdom, m.utley@ucl.ac.uk, Tom Treasure, Francesca 

Fiorentino 

As part of a programme of research to explore and, as appropriate, challenge the 

evidence-base for thoracic surgery, simple mathematical models have been 

developed to assess assumptions made about the benefit conferred by surgery on 

two groups of cancer patients. The presentation will draw on work concerning 

radical surgery for malignant pleural mesothelioma and the resection of 

pulmonary metastases in colorectal cancer patients. In both cases, our findings 

undermine the presumption of efficacy. 

■ SC12 

SC12 

Perspectives on Electronic Negotiation Support 



Chair: Sabine Koeszegi, Professor, Vienna University of Technology, 

Theresianumgasse 27, Vienna, 1040, Austria, 

Koeszegi@imw.tuwien.ac.at 

1 - What Are You Looking For? Information Presentation in 

Electronic Negotiation Support 

Johannes Gettinger, Vienna University of Technology, 


Gettinger@imw.tuwien.ac.at, Sabine Koeszegi 

An element of utter importance in the human-machine interface is to assist 

decision makers not only to overcome mental resource limitations and to extend 

human processing abilities, but also to retrieve the most relevant information 

efficiently. The aim of this paper is to develop a conceptual model of how 

information presentation, task type, user characteristics and task complexity 

affect human decision making and to discuss implications of these findings for 

the development of an effective eNS. 

2 - Antecedents and Effects of Communication Quality in Electronic 

Business Negotiations 

Katja Ostertag, University of Hohenheim, 70593 Stuttgart, 

Schloss, Osthof-Nord, 70599, Germany, 

katja.ostertag@wi1.uni-hohenheim.de, Mareike Schoop 

Due to reduced social and personal cues in electronic interaction, the way people 

communicate plays a crucial role. Based on empirical data, we describe what 

shapes the level of communication quality in electronic business negotiations 

(coherence, negotiators’ predispositions etc.). Further, we analyse the effects of 

different communication quality levels on negotiation outcome measures. This 

research aims at improving communication-oriented electronic negotiation 

support. 

3 - Perspectives on Electronic Negotiation Support 

Sabine Koeszegi, Professor, Vienna University of Technology, 


Koeszegi@imw.tuwien.ac.at, Michael Filzmoser, 

Johannes Gettinger, Rudolf Vetschera 

In order to provide the foundation for effective eNS Design, we develop in this 

paper a broad perspective on negotiations since potential benefits of eNS are 

closely related to their effectiveness in orchestrating the interplay of: the specific 

support approach or philosophy (system), its actual implementation in support 

features (technology), and the particular characteristics of users, i.e. their 

cognitive restrictions, their socio-emotional states and their preferences and goals 

(human).

SC13 

■ SC13 

Strategic Analysis of Group Decisions 



Chair: Kevin Li, Assistant Professor, University of Windsor, 

Odette School of Business, Windsor, ON, Canada, kwli@uwindsor.ca 

1 - A Perspective on Fuzzy Preferences in Conflict Resolution 

M Abul Bashar, Doctoral Student, University of Waterloo, 

200 University Ave. West, Waterloo, ON, N2L 3G1, Canada, 

mabashar@engmail.uwaterloo.ca, Marc Kilgour, Keith Hipel 

The literature on fuzzy preferences is surveyed and compared in order to suggest 

effective designs for modeling fuzzy preferences for use in conflict resolution. 

Fuzzy preference is defined via a fuzzy relation in an attempt to capture more 

realistic realizations over the alternatives or states. The usefulness of fuzzy 

preferences for describing uncertain preferences in conflict resolution is 

investigated through examples. 

2 - A Quasi-Newton Approach for Learning in the Context of 

Electronic Negotiation 

Rangaraja Sundarraj, Professor, Qatar University, College of 

Business and Economics, P.O. Box 2713, Doha, 2713, Qatar, 

rsundarraj@qu.edu.qa, Paul Meloche 

In this paper, we consider the problem of learning the parameters of a decisionfunction 

that has recently obtained significant interest in the electronic 

negotiation literature. We evaluate several nonlinear optimization methods in 

order to provide an improvement over previous results obtained. The methods 

are evaluated by generating random negotiation replications and compared in 

terms of their ability to accurately estimate the learning parameters under 

consideration. 

3 - Matrix Representation of Conflict Resolution in the Graph Model 

with Strength of Preferences 

Haiyan Xu, Doctoral Student, University of Waterloo, 


xuhaiyan63@hotmail.com, Keith W. Hipel, Marc Kilgour 

Several stability definitions in the graph model with strength of preferences are 

presented using explicit matrix formulations instead of graphical or logical 

representations. The matrix representation of solution concepts facilitates the 

development of improved algorithms to assess the stabilities of states and to 

implement new stability concepts. 

New Paper Added to this session. 

■ SC14 

Online Social Networks 

Sponsor: Information Systems 


Chair: Param Singh, Assistant Professor, Carnegie Mellon University, 

5000 Forbes Avenue, Pittsburgh, PA, 15213, United States of America, 

psidhu@cmu.edu 

1 - Value of Software Innovations: The Influence of Quality, Structure 

and Diversity of Ties 

Harpreet Singh, University of Connecticut, 2100 Hillside Road, 

Unit 1041, Storrs, CT, 06269-10, United States of America, 

Harpreet.Singh@business.uconn.edu, Xinxin Li, Ram Gopal 

In this study, we use software patent data to investigate the impact of social 

capital accrued by inventors from collaboration networks in which they are 

embedded on value of software innovation. We find that quality of a team’s 

external direct contacts, regional diversity of external ties of a team and external 

cohesion has significant positive influence, technical diversity has negative 

influence and the quality of indirect contacts has no significant impact on value 

of software innovation. 

2 - Review Social Networks and the Generation of Review: 

A Case of Epinions.com 

Yingda Lu, Student, Carnegie Mellon University, Carnegie Mellon 

University, 5000 Forbes Avenue, Pittsburgh, PA, 15213, 

United States of America, yingdal@andrew.cmu.edu, Param Singh, 

Kinshuk Jerath, Ramayya Krishnan 

In this study, we investigate the relationship between social networks and the 

creation of user-generated content on Epinions.com by modeling the coevolution 

of the “webs of trust” of reviewers and their review behavior. The 

modeling framework and results from this study contribute to the understanding 

of how social structures affect the generation of user-generated content and vice 

versa. 


32 

3 - Do I Follow My Friends or Crowds? Examining Informational 

Cascades in Online Movie Reviews 

Young-Jin lee, University of Washington, Box 353200, Seattle, 

WA, 98195-3200, United States of America, 

younglee@u.washington.edu, Yong Tan 

Online product reviews can be regarded as an intrinsic quality expression of each 

individual consumer’s product evaluation. There are two distinct sources of 

information beside a reviewer’s own signal in writing a product review: other 

reviewers’ quality consensus and social conformity in online friend environment. 

Examining informational cascade in online reviews, we study closely how 

predecessors’ ratings influence a subsequent reviewer’s quality evaluation with 

respect to these information. 

■ SC15 

IT Value in Organizations 



Chair: Barrie R Nault, Haskayne School of Business, University of 

Calgary, Calgary, AB, T1W 2L6, Canada, nault@ucalgary.ca 

1 - Capturing IT Value as Illusory Correlation 

Victoria L Mitchell, Associate Professor, Haskayne School of 

Business, University of Calgary, Calgary, AB, Canada, 

mitchelv@ucalgary.ca 

IT value in organizations is often a subjective measure. An impediment to 

accurately measuring IT value is illusory correlation among different 

organizational users. This study examines illusory correlation among project 

managers, IT managers, and system users in capturing satisfaction as a measure 

of IT value. Implications for research are addressed. 

2 - Moderated Online Communities 

Jianqing Chen, Haskayne School of Business, University of 

Calgary, Calgary, AB, Canada, jiachen@ucalgary.ca, Hong Xu, 

Andrew Whinston 

To induce quality content for online communities, we introduce moderation into 

reputation systems. We show that under moderation commentators may display 

a pattern of reputation oscillation—-they generate useful content to build up 

high reputation and then exploit it. The expected performance from high 

reputations can thus be inferior to that from low reputations. We then discuss 

the optimal moderation resource allocation, and conclude that reputation 

oscillation may arise as an optimal result. 

3 - Economic Study of Software Reuse 

Yonghua Ji, Assistant Professor of MIS, School of Business, 

University of Alberta, Edmonton, AB, T6G2R6, Canada, 

yji@ualberta.ca 

Software reuse has the advantages of increasing the productivity of software 

teams, and enhancing the reliability of future software projects. However, the 

benefit of software reuse might not always realize due to several reasons, one of 

which is the lack of managerial incentive. This work studies the incentive issues 

in software reuse and highlights managerial implications from this work. 

4 - The Monologue of the Group: Wiki Affordances and 

Organizational Work 

Ofer Arazy, School of Business, University of Alberta, Edmonton, 

AB, Canada, ofer.arazy@ualberta.ca, Esther Brainin, Stan Ruecker 

IT has the potential to shape organizations in various ways, among them is mass 

collaboration. A primary IT supporting mass collaboration is wiki. Wikis have 

several affordances and this paper examines the work processes enabled by these 

wiki affordances. The objective of this paper is to chart the emerging domain of 

wiki-enabled mass collaboration: identify the primary wiki affordances, point to 

relevant theoretical foundation, and discuss principal predictor and criterion 

variables. 

■ SC18 

OR Applications in Forest Management 



Chair: Eldon Gunn, Dalhousie University, 5269 Morris St, Halifax, NS, 

B3H 4R2, Canada, eldon.gunn@dal.ca 

1 - Choosing Among Surface Erosion Monitoring Schemes 

David Tomberlin, Economist, NOAA Fisheries, 1315 East-West 

Highway, Silver Spring, MD, 20901, United States of America, 

David.Tomberlin@noaa.gov

This paper presents a framework for choosing among different protocols for 

monitoring sediment loading from logging roads when the protocols differ in cost 

and in the quality of the information they provide. A partially observable 

Markov decision process approach identifies the conditions under which each 

protocol is preferred, taking into account the expected costs and benefits of 

available management actions, as well as the cost and quality of information 

provided by each monitoring protocol. 

2 - Strategic Facility Location in a Wood Products Supply Chain: 

An Agent Based Approach 

Saba Vahid, PhD Candidate, Faculty of Forestry, UBC, #4219, 

2424 Main Mall, Vancouver, BC, V6T1Z4, Canada, 

saba_v@interchange.ubc.ca, Thomas Maness 

To regain competitiveness, British Columbia (BC) wood products industry can 

greatly benefit from the concept of Supply Chain Management. Agent-based 

modelling has been used frequently in recent years to model complex supply 

chains (SC). Using agents offers more flexibility compared to traditional 

simulation and optimization models. We modify and extend an existing agentbased 

model in our research, in order to determine optimal location and product 

type for possible new mills in the BC coast. 

3 - Very Large Scale Models for Strategic Forest Planning: 

Why and How? 

Eldon Gunn, Dalhousie University, 5269 Morris St, Halifax, NS, 

B3H 4R2, Canada, eldon.gunn@dal.ca 

The current emphasis on both ecosystem management and the forest products 

supply chain argues for highly spatial strategic models designed for interactive 

analysis. Formulated as an LP, these models can easily exceed a million 

variables. To be effective, we need to be able to solve them quickly, initially, and 

after making modifications to constraints. This paper discusses why we need 

these models and indicates how we can obtain the rapid solution using ideas 

from Forrest sprint approach. 

■ SC19 

Innovation 


Chair: Ray Fung, Harvard Business School, Soldiers Field Park Campus, 

Morris F156, Boston, MA, 02134, United States of America, 

rfung@hbs.edu 

1 - Cultural Distance and New Product Development in MNCs 

Masoomeh Moharrer, Politecnico di Milano, Dipartimento di 

Ingegneria Gestionale, Via Giuseppe Colombo, 40, 20133 Milano, 

Milan, Italy, negar602001@yahoo.com 

We propose how cultural heterogeneity is expected to increase innovative 

performance in MNCs. By diversification firms can have access to the 

opportunities that don’t exist in their own situation.The more distant the clusters 

are the more different the existing opportunity would be so MNC can benefit 

from a pool of idea that is created as the result of the heterogeneity of culture. 

We used the theories of strategy and organizational learning to show that 

cultural heterogeneity can benefit MNCs. 

2 - Does IPO Foster Profitability Rather Than Innovation 

Moren Levesque, Associate Professor, University of Waterloo, 

Department of Management Sciences, 200 University Avenue 

West, Waterloo, ON, N2L 3G1, Canada, levesque@uwaterloo.ca, 

Nitin Joglekar 

We use the concept of growth equilibrium to derive prescriptions on the growth 

of new business enterprises, considering the law of motion of their revenues and 

R&D expenses. We use a sample of enterprises that went public between 1992 

and 2002 to test these prescriptions 5 years after their respective initial public 

offering. 

3 - Whither Innovation Strategy? A Conceptual Framework 

Ray Fung, Harvard Business School, Soldiers Field Park Campus, 

Morris F156, Boston, MA, 02134, United States of America, 

rfung@hbs.edu 

I review both the innovation and strategy literature to attempt to see if the two 

can be integrated into a combined innovation strategy literature. I then propose a 

theoretical framework of four different methods with which both literatures 

could be merged, the preconditions in which those methods would hold, and the 

predictions of each method. Future researchers may then test the predictions to 

see which of the methods is most apt to describe real-world innovation strategy. 


33 

■ SC20 

Risk Management I 


Chair: Isabel Cordeiro, Dr., Universidade do Minho and 

CEMAPRE/ISEG, EEG, Universidade do Minho, Gualtar, Braga, 

4710-057, Portugal, icordeiro@eeg.uminho.pt 

1 - Regime Switch of Financial Time Series - Problems and Evidence 

Tibor Kis, Professor, Faculty of Economics, 9-11, Segedinski put, 

Subotica, Vo, 24000, Serbia-Montenegro, tbkis@yahoo.com, 

Marija Cileg 

Historical financial data often perform behavior that indicates severe alterations 

in some periods compared to that exhibited formerly. In this paper we investigate 

possibilities of finding out shifts in financial time series, causes of changes, track 

historical evidence and try to trace signals in data that could give short term 

prediction of unexpected shifts. 

2 - Dynamic Pricing of one Seasonal Product with Demand Learning 

Using Aggregating Algorithm 

Weihong Jin, Queen’s School of Business, Room 401, 

143 Union St., Goodes Hall, Kingston, ON, K7L3N6, Canada, 

wjin@business.queensu.ca 

We consider a pricing problem faced by a retailer who sells one seasonal product 

over a limited horizon. The demand for the product is completely unknown 

before the sales season. The goal is to make decisions on three-stage markdown 

prices and the timing of price changes. We formulate the pricing problem as a 

dynamic program, in which parameters are learned using Aggregating algorithm. 

The numerical experiments show the effectiveness of the algorithm in learning. 

3 - Portolfolio Optimization with Transaction Costs: Solving Mixed 

Integer Quadratic Programs 

Bharath Rangarajan, Assistant Professor, University of Minnesota, 

111 Church Street SE, Mechanical Engineering Department, 

Minneapolis, MN, 55414, United States of America, 

ranga013@umn.edu 

We propose use of polyhedral approximations to quadratic programs as well as 

column/constraint generation ideas to solve large-scale portfolio optimization 

problems with fixed transaction costs. The work shows that even without 

column/constraint generation the method works very well. We propose 

maintaining a library of constraints that will used to generate a select set of 

constraint cuts, implemented along with a branch and bound method. 

4 - Sensitivity Analysis of the Moments of the Profit on an Income 

Protection Policy 

Isabel Cordeiro, Dr., Universidade do Minho and CEMAPRE/ISEG, 

EEG, Universidade do Minho, Gualtar, Braga, 4710-057, Portugal, 

icordeiro@eeg.uminho.pt, Pedro Magalhaes 

Income Protection (IP) is a class of long-term sickness insurance which provides 

cover against the risk of loss of income due to disability. The main purpose of this 

paper is to carry out a sensitivity analysis where we analyse the effects on the 

mean of the profit on a policy and two risk measures of changing the values of 

the transition intensities defined for a multiple state (semi-Markov) model for 

the analysis of IP data. 

■ SC21 

SC21 

Decision Support Applications I 


Chair: Pranil Prasad, Assistant Lecturer, The University of the South 

Pacific, Laucala Bay Rd., Suva, Fiji, prasad_pn@usp.ac.fj 

1 - Real-time Planning and Scheduling System for Industrial 

Minerals Production 

Zhehui Hugh Zhong, Simulation Consultant, Visual8 Corporation, 

1505 Hurontario St., Mississauga, ON, L5G3H7, Canada, 

hugh.z@visual8.com, Christopher Milligan 

Simul8-Planner is an event-based scheduling tool used in a wide variety of 

process environments. Here we present a real-time application at an industrial 

minerals plant. In addition to meeting production constraints, the solution 

supports variances in demand, product quality, and inventory via blending. 

Solution elements use MIP, asymmetric TSP and adaptive scheduling heuristics. 

These are combined under a web-based interface to create a flexible system that 

coordinates all plant activities.

SD01 

2 - On the Usage of PLS Versus SEM in Technology Adoption 

Research: A Comparative Simulation 

Alan Brandyberry, Kent State University, Management & 

Information Systems Department, Kent, OH, 44236, United States 

of America, abrandyb@kent.edu, Murali Shanker, Marvin Troutt 

Information systems research has seen a widespread but somewhat controversial 

application of Partial Least Squares (PLS) or component-based methods in the 

analysis of path models (as opposed to covariance-based SEM). As much of this 

research has been in the area of technology adoption, it is this study’s objective 

to analyze the conditions where PLS may be both useful and problematic within 

this particular domain by employing classic adoption studies as the basis for a 

comparative simulation. 

3 - A Parallel Simulated Annealing for a Multi-objective Maintenance 

Workforce Scheduling Problem 

Nima Safaei, Postdoctoral Fellow, University of Toronto, 5 King’s 

College Rd, Toronto ON M5S 3G8, Canada, 

safaei@mie.utoronto.ca 

A parallel Simulated Annealing algorithm with multi-threaded architecture is 

proposed to solve a multi-objective maintenance workforce scheduling problem. 

The conflicting objectives are the minimization of the equipment downtime 

caused by the maintenance tasks and minimization of the requirements of the 

skilled workforce. 

4 - Information Systems and Fraud Detection 

Pranil Prasad, Assistant Lecturer, The University of the South 

Pacific, Laucala Bay Rd., Suva, Fiji, prasad_pn@usp.ac.fj, 

Arvind Patel 

This research paper will look at the impact of information systems on the 

detection of fraud in organizations. The use of computers in organizations has 

lead to many new risks for businesses. This in turn has an impact on the audit of 

a client and the detection of fraud committed with use of computer information 

systems. 

Sunday, 3:30pm - 5:00pm 

■ SD01 

Dynamic Traffic Assignment - Recent Progress 



Chair: Michael Florian, Professor Emeritus, University of Montreal, 

P.O. Box 6128, Station, Montreal, QC, H3C 3J7, Canada, 

mike@crt.umontreal.ca 

1 - Factors Affecting Convergence and Stability in Simuation-based 

Dynamic Traffic Assignment 

Michael Mahut, INRO, 5160 Decarie Boulevard, Suite 610, 

Montreal, QC, H3X 2H9, Canada, michaelm@inro.ca, 

Nicolas Tremblay, Michael Florian 

A number of factors can have a significant impact on convergence and stability of 

a simulation-based DTA model, such as the size and complexity of the network, 

overall level of congestion, level of detail of the embedded traffic model, 

temporal discretization and stochastic effects. We present some insights into these 

factors obtained through numerical experiments on actual networks, and also 

compare the performance of different assignment algorithms in the presence of 

these factors. 

2 - Model-based Data Fusion Framework for Real-time 

Traffic Prediction 

Moshe Ben-Akiva, Massachusetts Institute of Technology, 

77 Massachusetts Ave, Cambridge, MA, 02139, United States of 

America, mba@mit.edu, Constantinos Antoniou, Eric Huang, 

Jorge Lopes, Yang Wen 

A model-based data fusion framework for real-time traffic state prediction is 

presented. The framework is validated on the Brisa A5 Motorway, a 25-km interurban 

highway in Portugal, equipped with a number of traffic detectors including 

inductive loop sensors, automatic video processing cameras, electronic tolling and 

point-to-point sensors. The data is collected and fused in real-time within the 

DTA system DynaMIT. Scalability issues and next research steps are also 

discussed. 

3 - Dual Approximation and a MSA-based Heuristic for Dynamic 

Congestion Pricing 

Travis Waller, University of Texas at Austin, 1 University Station 

C1761, Austin, TX, 78712, United States of America, 

stw@mail.utexas.edu, Avinash Unnikrishnan, Dung-Ying Lin 

Techniques to determine the time-varying tolls in a traffic network will be 

presented. The dual-based methods exploit the LP structure of the network 


34 

problem which uses Cell Transmission Theory for propagation. Solutions for both 

the first best and second best time-varying tolls are sought in a computationally 

efficient manner. Numerical experiments are conducted on two networks to 

show the efficacy of the heuristic. A maximum optimality gap of 2.03% is 

obtained for the examined cases. 

■ SD02 

Optimization and Networks 

Cluster: Optimization/Combinatorial Optimization 


Chair: Monica Cojocaru, Assoc. Professor, University of Guelph, 

50 Stone Road East, Guelph, ON, N1G 2W1, Canada, 

mcojocar@uoguelph.ca 

1 - On the Curvature of the Central Path in Linear Programming 

Chris Voicu, McMaster University, Canada, 

chisv@math.mcmaster.ca 

We present recent results regarding the curvature of the central path in Linear 

Programming in analogy with the geometric diameter. 

2 - Cone Programming Relaxations for Complementarity Constraints 

Juan Vera, University of Waterloo, juancavera@gmail.com, Jay Hu 

We present new theoretical results on new relaxations schemes for polynomial 

programming. This relaxations are specially suited to be applied on problems 

with complementarity constrains. These relaxations can be casted as secondorder 

cone programming problems or semidefinite programming problems, and 

are shown to be exact, i.e. to provide the global optimum, in some cases. 

3 - Network Equilibrium Problems and Hybrid Dynamical Systems 

Scott Greenhalgh, University of Guelph, Guelph, N1G 2W1, 

Canada, greenhas@uoguelph.ca, Monica Cojocaru 

We present a numerical scheme for describing the time evolution of a class of 

network equilibrium problems. Our method is based on an approach from hybrid 

dynamical systems and blends in with previous approaches for studying 

equilibrium problems, coming from optimization and/or variational inequalities. 

This is joint work with Monica Cojocaru, University of Guelph. 

4 - Dynamic Competition in Electricity Markets: Hydropower and 

Thermal Generation 

Henry Thille, Assoc. Prof. Economics, University of Guelph, 

hthille@uoguelph.ca, Talat Genc 

We study dynamic competition between hydro and thermal electricity generators 

in a stochastic environment. We examine settings in which either demand is 

uncertain or the reservoir replenishment of the hydro producer is uncertain. 

Each producer is constrained: the thermal generator by capacity and the hydro 

generator by water availability. We use collocation methods to solve the hydro 

producer’ dynamic programing problem, providing an approximation to the 

value function. 

■ SD03 

Network Design 


Chair: M. Eugenia Captivo, Associate Professor, University of Lisbon, 

Faculty of Sciences, Campo Grande, Bloco C6, Piso 4, Lisboa, 

1749-016, Portugal, mecaptivo@fc.ul.pt 

1 - Refinery and Petrochemical Network Integration 

Khalid Alqahtani, University of Waterloo, 431 Beaver Creek Rd, 

Waterloo, On, N2V 2J8, Canada, qahtanky@yahoo.com, 

Abdunnaser Younes, Ali Elkamel 

This work addresses the design of integration and coordination between 

petroleum refinery and petrochemical networks. The refinery and petrochemical 

systems were modeled as a MILP problem. The performance of the proposed 

model was tested on industrial-scale examples of multiple refineries and a 

polyvinyl chloride (PVC) complex to illustrate the economic potential and tradeoffs 

involved in the optimization of the network. 

2 - A Node Rooted Flow-based Model for the Local Access Network 

Expansion Problem 

Luis Gouveia, University Lisbon, Faculty of Sciences, DEIO - CIO, 

Cidade Universitaria, Bloco C6, Lisbon, Portugal, 

legouveia@fc.ul.pt, Margarida Goncalves 

In the local access expansion problem, we need to expand a given tree network 

by increasing the capacity of the edges or by installing concentrating devices in 

some nodes of the network, in order to satisfy the increase in node demands. We 

review two flow-based models and present a new three indexed flow-based 

model. We test and compare the new and old models for instances with 100, 200 

and 500 nodes in order to show the advantages of the new proposed model.

3 - Fast Converging Global Solution for Continuous Network Design 

Problem Using Radial Basis Functions 

Joseph Chow, University of California, Irvine, 4000 Anteater 

Instruction and Research B, Irvine, CA, 92697, United States of 

America, ychow@uci.edu, Amelia Regan, Dmitri Arkhipov 

A faster converging global optimization method is needed to integrate continuous 

network design solutions with hierarchical network models. The radial basis 

function method was shown to converge faster than genetic algorithm or 

simulated annealing for high-dimensional constrained objective functions. Such 

an algorithm is proposed for the continuous network design problem with 

promising results. 

4 - A MILP Formulation for the Minimum Labeling Spanning 

Tree Problem 

M. Eugenia Captivo, Associate Professor, University of Lisbon, 

Faculty of Sciences, Campo Grande, Bloco C6, Piso 4, Lisboa, 

1749-016, Portugal, mecaptivo@fc.ul.pt, Marta Pascoal, 

Joao Climaco 

The minimum label spanning tree problem is a relevant problem, with 

applications in telecommunication or transportation networks, where each edge 

is assigned with a label (such as a color) and it is intended to determine a 

spanning tree with the minimum number of different labels. We introduce some 

mixed integer formulations for this problem and prove that one of their 

relaxations always gives the optimal value. Finally we present and discuss the 

results of computational experiments. 

■ SD04 

Stochastic Programming: Computational Aspects 

and Applications in Finance 

Cluster: Optimization/Stochastic Programming 


Chair: Guzin Bayraksan, University of Arizona, 1127 E James E. 

Rogers Way, Tucson, AZ, 85721, guzinb@sie.arizona.edu 

1 - Optimal Capital Growth with Convex Loss Penalties 

Leonard MacLean, Herbert Lamb Chair in Business, Dalhousie 

University, 6100 University Avenue, Halifax, NS, B3h 3J5, 

Canada, l.c.maclean@dal.ca, Yonggan Zhao, William Ziemba 

In this paper the traditional capital growth model and modifications to control 

risk are developed. A mixture model based on Markov transitions between 

market regimes is used for the dynamics of asset prices. Decisions on investment 

in assets are based on a constrained growth model, where the trajectory of 

wealth is required to exceed a specified path over time, and the path violations 

are penalized in a convex utility. 

2 - Asset Allocation Based on Enhanced Indexation 

Diana Roman, Lecturer, Brunel University, Kingston Lane, 

Uxbridge, UB83PH, United Kingdom, Diana.Roman@brunel.ac.uk 

Enhanced indexation models are strategies for asset allocation with the intention 

of outperforming an index. Usually, the enhancement of the index is specified as 

excess return. Second order stochastic dominance (SSD) is a recognised choice 

criterion among random (portfolio) returns. We propose an enhanced indexation 

model based on SSD: the chosen portfolio improves on the index’s return 

distribution until SSD efficiency is obtained. A numerical study illustrates the 

effectiveness of the method. 

3 - Disjunctive Decomposition for Two-Stage Stochastic Mixed- 

Integer Programs with GUB Constraints 

Guzin Bayraksan, University of Arizona, 1127 E James E. Rogers 

Way, Tucson, AZ, 85721, guzinb@sie.arizona.edu, Brian Keller 

The disjunctive decomposition algorithm for stochastic integer programs uses 

disjunctive cuts based on knowledge that a variable is equal to 0 or 1. We 

examine stochastic integer programs with generalized upper bound (GUB) 

constraints in the second stage and exploit this structure to generate cuts based 

on alternative disjunctions. We show that the strength of the alternative cuts 

forms a hierarchy, and we explore the performance of the hierarchy on a 

scheduling problem. 


35 

■ SD05 

Topics in Aviation OR 



Chair: Thomas Vossen, University of Colorado, UCB0419, Boulder, CO, 

80309, United States of America, Vossen@Colorado.EDU 

1 - Air Traffic Controller Workload: Estimating Look-ahead 

Conflict Detection Counts 

Nastaran Coleman, Sr. OR Analyst, U.S. Federal Aviation 

Administration, 800 Independence Ave, SW, Washington, DC, 

20591, United States of America, nastaran.coleman@faa.gov, 

Ellis Feldman 

Potential conflict detection and resolution are components of air-traffic controller 

workload contributing to sector complexity in the enroute environment. A linear 

programming model was developed to detect possible conflicts between any 2 

aircraft, accounting for positional uncertainties. Optimizations reduced processing 

time, including eliminating aircraft pairs with no potential for conflict and 

preventing memory leaks. 

2 - The FAA’s System Wide Information Management 

(SWIM) Program 

Eric (Rick) Helfers, Project Lead, BAE Systems, 

7619 Lake Glen Dr, Glenn Dale, MD, 20769, United States of 

America, eric.helfers@baesystems.com 

The SWIM Program is an integral part of the US National Airspace System (NAS) 

Enterprise Architecture Roadmap. SWIM will close performance gaps by 

developing a set of NAS services based on common standards and tools, using a 

Service-Orientated Architecture. SWIM will leverage existing systems and 

networks and will be based on technologies that have been proven in operational 

and demonstrations. The program has an incremental development plan to fit 

cost, schedule, and risk thresholds. SWIM provides the basis for information 

exchange between systems. Segment 1 is ongoing and Segment 2 is expected to 

initiate in June 2010. 

■ SD06 

SD06 

Scheduling I 


Chair: Quentin Lequy, GERAD, 3000 Chemin de la Coté-Sainte- 

Catherine, Montreal, QC, H3T2A7, Canada, quentin.lequy@gerad.ca 

1 - On a Scheduling Problem in the Packaging Industry 

Jan van Vuuren, Professor, Stellenbosch University, South Africa, 

Department of Logistics, Private Bag X1, Matieland, WC, 7602, 

South Africa, vuuren@sun.ac.za, Alewyn Burger, Neil Jacobs, 

Stephan Visagie 

Foil wrappers used for packaging snacks require multiple colour overlay printing. 

If consecutively scheduled print jobs require significantly different colour 

overlays, substantial (sequence-dependent) tear-down times (and fixed setup 

times) are incurred. Print schedules should therefore minimize the number of 

colour pallets required per printer and sequence them to minimize pallet wash 

times. This scheduling problem is solved exactly for small instances and 

heuristically for larger instances. 

2 - Solving a Dock Assignment Problem as a Three-stage Flexible 

Flow-shop Problem 

Lotte Berghman, KULeuven, Naamsestraat 69, Leuven, 3000, 

Belgium, lotte.berghman@econ.kuleuven.be, Roel Leus 

We study a dock assignment problem based on a practical case. Trailers are 

scheduled on gates for loading or unloading; a parking lot is used as a buffer 

zone. Transportation between the parking lot and the gates is performed by 

additional resources called terminal tractors. The problem is modeled as a threestage 

flexible flow shop, where the first and third stage consist of the same 

identical parallel machines and the gates constitute identical parallel machines in 

the second stage. 

3 - The Refurbishing Flowshop Scheduling Problem 

Yamei Tian, National ChiaoTung University, 1001 Tahsue Rd, 

Hsinchu, Taiwan - ROC, yamei.tian@gmail.com, Bertrand M.T. 

Lin, T. C. Edwin Cheng 

We study a refurbishing flowshop that dismantles products into parts in stage one 

and refurbishes the parts on dedicated machines in stage two. The objective is to 

minimize the weighted sum of the completion times. Lower bounds are designed 

based on a disaggregation technique and the minimum assignment problem. We 

also analyze the performance ratio of an LP-relaxed heuristic approach. ILS- and 

ACO- based metaheuristic algorithms are developed for approximate solutions.

SD07 

4 - A Large Neighborhood Search Algorithm for Activity Assignment 

Considering Flexible Shifts 

Mahsa Elahipanah, GERAD research center, HEC Montreal, 3000, 

Chemin de la Coté-Sainte-Catherine, Montreal, QC, H3T 2A7, 

Canada, mahsa.elahipanah@gerad.ca, Guy Desaulniers 

Given primary shifts containing one break each, the activity assignment problem 

with flexible shifts consists of assigning activities to the shifts so as to minimize 

activity undercoverage while allowing to slightly extend the shifts or move the 

breaks. A column generation formulation is proposed and used within a large 

neighborhood search algorithm to produce good quality solutions in fast 

computational times for large-sized instances. 

5 - A Large Neighborhood Search Algorithm for Assigning Multiple 

Activities to Work Shifts 

Quentin Lequy, GERAD, 3000 Chemin de la 

Coté-Sainte-Catherine, Montreal, QC, H3T2A7, Canada, 

quentin.lequy@gerad.ca, Francois Soumis, Mathieu Bouchard, 

Guy Desaulniers 

The multi-activity assignment problem consists of assigning activities to fixed 

work shifts so as to minimize activities undercoverage. In order to tackle largesize 

instances, our search algorithm improves an initial solution by defining large 

neighborhoods over which the current solution is reoptimized using a column 

generation heuristic. Computational results will be presented. 

■ SD07 

Tutorial: Queueing Systems with Flexibility 



Chair: Douglas Down, Associate Professor, McMaster University, 

Department of Computing and Software, 1280 Main Street West, 

Hamilton, ON, L8S 4L7, Canada, downd@mcmaster.ca 

1 - Queueing Systems with Flexibility 

Douglas Down, Associate Professor, McMaster University, 

Department of Computing and Software, 1280 Main Street, 

West, Hamilton, ON, L8S 4L7, Canada, downd@mcmaster.ca 

Queueing systems with flexible servers arise as models applicable to service and 

production systems with cross-trained workers, as well as in computer service 

provisioning. In this tutorial, planning (which servers should be capable of doing 

which tasks) and operational issues (where servers should be assigned in realtime) 

will be discussed. Important insights and methodologies will be 

highlighted, as well as current open problems of interest. 

■ SD08 

Queueing and Networks 


Chair: Laszlo Lakatos, Professor, Eotvos Lorand University, Pazmany 

Peter s. 1/C, Budapest, H-1117, Hungary, lakatos@compalg.inf.elte.hu 

1 - Performance Analysis of Guard Channel Based CAC Scheme 

in a 3G-WLAN Integrated Network 

Jae Man Park, KAIST, 2208 ho E2 KAIST gusung-dong 

yusung-gu, Daejeon, Korea, Republic of, jaeman31@kaist.ac.kr, 

Gang Uk Hwang 

We consider a guard channel based call admission control (CAC) scheme to 

support quality of service (QoS) in a 3G-WLAN integrated network. We develop 

and analyze a performance model for the scheme where the Gauss-Markov 

movement model and PH distributions are used for mobility model. We 

introduce a non-homogeneous QBD process to model the channel state and get 

some QoS metrics. We show the simulation to validate our analysis and find that 

guard channels are not effective when WLAN area is large. 

2 - Computing the Blocking Probability of Networks Under QoS and 

Budget Constraints 

Hsing Luh, Professor, National Chengchi University, Department 

of Mathematical Sciences, Taipei, 116, Taiwan - ROC, 

slu@nccu.edu.tw, Chia-Hung Wang 

We study the blocking probability of an end-to-end communication system. The 

blocking is due to the limit budget when setting up the number of end-to-end 

paths and allocated bandwidth in the planning stage. We present two queueing 

models of the predetermined bandwidth allocations under two general network 

scenarios. In this presentation, we analyze the relationship between the 

bandwidth allocations and the blocking probability. 


36 

3 - Cyclic-waiting Systems: Waiting Time and Number of Customers 

Laszlo Lakatos, Professor, Eotvos Lorand University, 

Pazmany Peter s. 1/C, Budapest, H-1117, Hungary, 

lakatos@compalg.inf.elte.hu 

We consider a single-server queueing system without losses, FCFS discipline, in 

which the refused customers may repeat their requests for service only at 

moments differing from the arrival by the multiples of a given cycle time T. The 

model describes the process of landing of airplanes or the functioning of fiber 

delay lines. We find the generating functions for the number of present 

customers and waiting time, show that they meet at the stability condition. 

■ SD09 

Supply Chain Performance II 


Chair: Jin Wang, Professor, Valdosta State University, Department of 

Math & CS, 1500 N Patterson St, Valdosta, GA, 31698-0040, 

United States of America, jwang@valdosta.edu 

1 - An Economic Model for Supply Chain Delivery Performance 

Alfred Guiffrida, Assistant Professor, Kent State University, 

Business Administration A411, P. O. Box 5190, Kent, OH, 44242, 

United States of America, aguiffri@kent.edu, Lihua Chen 

In this paper we present an economic model for evaluating time-based delivery 

performance to the final customer in a supply chain. The model is generalized to 

accommodate delivery performance under both make-to-order and make-tostock 

operating plans. Expressions are presented for the mean and variance of 

the expected delivery time as well as the expected cost due to untimely delivery 

performance. 

2 - Impact of Incentives and Coordination Mechanisms on Stability 

and Equilibrium of Network Economies 

Devanath Tirupati, Professor, Indian Institute of Management 

Ahmedabad, Vastrapur, Ahmedabad, India, 

devanath@iimahd.ernet.in, Pankaj Chandra, Omkar Palsule-Desai 

We develop and analyze a game theoretic model to understand the player 

dynamics in network economies and examine the impact of alternative price and 

profit-sharing driven mechanisms on stability and equilibrium of the network. 

The objective is to examine the role of coordination mechanisms on 

sustainability of the network. 

3 - The Influence of Relational Structures on Supplier Commitment 

Christina Wong, The Hong Kong Polytechnic University, Hung 

Hom, Kowloon, Hong Kong - ROC, tcchris@polyu.edu.hk, T. C. 

Edwin Cheng, Kee-Hung Lai, Y.H. Venus Lun 

Based on three theoretical perspectives, namely transaction cost analysis, social 

network, and institutional pressures, this study investigates the structural links 

between three exchange arrangements and their influences on relational 

development and supplier commitment in a buyer-supplier relationship (BSR). 

We find empirical support with data collected from 358 suppliers of a multinational 

firm. 

4 - Simulation Optimization Approach of Designing Multi-Point 

Push-Pull Supply Chains 

Seunghwan Kim, Visiting Assistant Professor, University of Illinois 

at Urbana-Champaign, Department of Business Administration, 

Champaign, IL, 61820, United States of America, 

ethankim@illinois.edu, John Fowler, Dan Shunk 

Despite the well-known benefits, the push-pull supply chain strategy often 

results in an inability to minimize the impact of lead time variability. We present 

a new hybrid push-pull strategy that incorporates multiple pulling points, which 

strengthens the order fulfillment capability of the push-pull strategy. Numerical 

experiments show that our new strategy generates more robust and cost-effective 

supply chain designs than those based on the conventional push-pull strategy. 

5 - Interactive Particle Models in Supply Chain Management 

Jin Wang, Professor, Valdosta State University, Department of 

Math & CS, 1500 N Patterson St, Valdosta, GA, 31698-0040, 

United States of America, jwang@valdosta.edu, Guifen Mao, 

Abhijit Deshmukh 

We study on stochastic models of emergent enterprise systems. Our focus is on 

developing and investigating efficient analytical and numerical methodologies to 

evaluate the overall performance of emergent enterprise systems. As a multistage 

supply chains, an emergent enterprise system can be modeled as an 

interacting particle system.

■ SD10 

Tutorial: Global Supply Chain Finance 



Chair: Panos Kouvelis, Professor, Washington University, Olin School 

of Business Campus Box 1133, 1 Brookings Drive, Saint Louis, MO, 

63130, United States of America, Kouvelis@wustl.edu 

1 - Global Supply Chain Finance 

Panos Kouvelis, Professor, Washington University, Olin School of 

Business Campus Box 1133, 1 Brookings Drive, Saint Louis, MO, 

63130, United States of America, Kouvelis@wustl.edu 

We will discuss research that advocates a tighter integration of the operations 

and finance functions within and across enterprises for higher value creation and 

for global supply chain risk management purposes. We place emphasis on better 

understanding of: (a) interfaces of financing and supply chain decisions; (b) 

integrated risk management of commodity and currency risks through the 

combined use of operational flexibilities and financial hedges. 

■ SD11 

Stochastic Models in Health Care 

Sponsor: Health Applications Section 


Chair: Steven Shechter, University of British Columbia, Vancouver, BC, 

Canada, steven.shechter@sauder.ubc.ca 

1 - Long Term Home Care Planning for the Vancouver Island 

Health Authority 

Martin Puterman, University of British Columbia, 

2053 Main Mall, Vancouver, BC, V6T 1Z2, Canada, 

Martin.Puterman@sauder.ubc.ca, Matthew Nelson, Derek Atkins, 

Steve Atkinson 

We developed an approach for forecasting complex care and assisted living 

requirements to year 2020. Arrival rates derived from demographic analysis 

coupled with length of stay estimates derived from censored data models 

provided inputs into a simulation based planning model. Simulation optimization 

was used to determine capacity levels by region and year. Results of this study 

impact both resource planning and resource allocation decisions. 

2 - Pricing Strategies for Combination Pediatric Vaccines 

Sheldon Jacobson, University of Illinois, 201 N. Goodwin Avenue, 

Urbana, IL, United States of America, shj@illinois.edu, 

Edward Sewell, Matthew Robbins 

Combination vaccines have become the backbone of the US Recommended 

Childhood Immunization Schedule. As more combination vaccines gain FDA 

approval, vaccine manufacturers are strategically pricing such products to 

optimally managed and enhance their market share. This presentation shows 

how optimization models can be used to reveal such strategies. 

3 - Should the New British Columbia Children’s Hospital Have an 

Express Surgical Suite? 

Candice Chan, University of British Columbia, 2053 Main Mall, 

Vancouver, BC, Canada, candice.chan@coe.ubc.ca, Derek Atkins, 

Stuart Donald, Steven Shechter, Anjali Aswathi 

In planning of a new hospital to accommodate increased demand, BC Children’s 

Hospital proposed the idea of an Ambulatory Surgical Unit designed specifically 

to handle relatively simple and less resource dependent “express” surgeries. The 

hope was that such configuration could help increase throughputs and reduce 

wait list. Through the use of discrete event simulation, we evaluated various 

surgical suite designs for their impacts on throughputs, wait times, and pre- and 

post-surgical resource utilizations. 

4 - A Simulation Optimization Model for Long Term Residential Care 

Capacity Planning 

Yue Zhang, Post-Doctoral Fellow, Sauder School of Business, UBC, 

Vancouver, BC, V6T 1Z2, Canada, yue.zhang@sauder.ubc.ca, 

Martin Puterman, Matthew Nelson, Derek Atkins 

This talk concerns optimizing capacity levels in our study of residential capacity 

planning for the Vancouver Island Health Authority (VIHA) for a long time 

period. The problem is described in a parallel talk, in this talk we focus on how 

we used the simulation to determine capacity levels that meet service criteria. 


37 

■ SD12 

Negotiation Support and the Law 



Chair: John Zeleznikow, Full Professor, Victoria University, 

P.O. Box 14428, Melbourne, Melbourne, VI, 8001, Australia, 

john.zeleznikow@vu.edu.au 

1 - Resolving Family Law Disputes with a Multi-agent Based 

Negotiation Support System 

Brooke Abrahams, Postdoctoral Research Fellow, 

Victoria University, P.O. Box 14428, Melbourne, 8001, Australia, 

brooke.abrahams@vu.edu.au, John Zeleznikow 

The paper describes the development of a multi-agent based NSS designed to 

assist disputants to achieve legally fairer negotiated outcomes. The system uses a 

Bayesian Belief Network and Artificial Intelligence (AI) techniques to incorporate 

Best Alternatives to Negotiated Agreements (BATNAs) into an integrative 

bargaining process. 

2 - Risks To Consider When Negotiating IT Outsourcing Agreements 

Subha Chandar, Victoria University, P.O. Box 14428, Melbourne, 

VI 8001, Australia, subha.chandar@research.vu.edu.au, 

John Zeleznikow 

Outsourcing IT can deliver substantial business benefits. However, it also carries 

significant risks and costs. Current industry practices in negotiating IT 

outsourcing agreements are based on ideology, fashion and personal expectations 

rather than structured techniques. Subsequently, a large proportion of IT 

outsourcing agreements either fail to deliver expected results or terminate 

abruptly, with severe consequences to the organisation. An Outsourced IT 

environment is complex. It is also exposed to many internal and external 

pressures. The long-term nature of an IT Outsourcing agreement also poses 

additional challenges, as the agreement needs to withstand numerous changes. 

These include changes not only affecting the outsourced IT department directly, 

but changes to client’s or supplier’s business priorities, and economic or global 

influences. Research shows that poorly crafted agreements factor significantly in 

the eventual failure of such agreements. The following paper explores the risks 

that need to be considered when negotiating IT Outsourcing Agreements. 

3 - Preferences and Justice in Alternative Dispute Resolution 

Peter Condliffe, Barrister/Research Scholar, Victorian Bar/Victoria 

University, 205 William Street,Melbourne, V, 3000, Australia, 

pc@vicbar.com.au 

This paper will describe and explore the relationship between disputant 

preferences and justice and the impact this may have on choice of interventions 

in dispute systems. It will draw on the author’s research into disputes in 

condominiums and the development of dispute management systems related to 

them. 

4 - Beyond Interest Based Bargaining - Incorporating Interests and 

Fairness in Developing NSS 

John Zeleznikow, Full Professor, Victoria University, P.O. Box 

14428, Melbourne, Melbourne, VI, 8001, Australia, 

john.zeleznikow@vu.edu.au 

Individuals undertake negotiation to derive better outcomes. Thus they often 

engage in interest based negotiation, which focuses upon the interests of 

disputants rather than upon objective measures. It is thus vital to develop 

measures for the development of fair NSS. We suggest principles which 

encourage fairness in the development of NSS, including transparency, 

bargaining in the shadow of the law and the need for discovery. We also 

illustrate the pitfalls of using such principles. 

■ SD13 

SD13 

E-negotiation Simulation and Assessment 



Chair: Gregory Kersten, Concordia University, Montreal, PQ, Canada, 

gregory@jmsb.concordia.ca 

1 - The Negotiation Process for Transportation Services: 

A Simulation Analysis 

Pierpaolo Pontrandolfo, Politecnico di Bari, Bari, Italy, 

pontrandolfo@poliba.it, Nicola Bellantuono 

This paper aims at investigating the negotiation process between the buyer (e.g. a 

manufacturing firm) and the logistics provider, by adopting agent-based 

simulation, according to an approach already adopted for similar purposes. The 

simulation model takes into account the main variables that influence the actors’ 

behaviour during the negotiation so as to identify which context scenarios are 

more favourable to the contract adoption.

SD14 

2 - Satisfaction of E-negotiation System Users 

Shikui Wu, Concordia University, Montreal, PQ, Canada, 

w_shikui@jmsb.concordia.ca, Bo Yu, Gregory Kersten 

Two series of experiments were conducted to study three categories of user 

satisfaction: satisfaction with outcome, self-performance and relationship. The 

results indicate that the categories are highly correlated but they are theoretically 

different. The correlation between satisfaction with outcome and relationship is 

stronger than that between the other two combinations. Satisfaction with selfperformance 

affects satisfaction with outcome and relationship but it is not 

affected by them. 

3 - Review on Assessment of Negotiation Systems 

Eva Chen, John Molson School of Business, Concordia University, 

1455 de Maisonneuve GM-903-09, Montreal, PQ, Canada, 

eh_chen@jmsb.concordia.ca 

Twenty two publications discuss the influence of negotiation systems on process 

and outcome variables. The studies showed that over the years research has 

centered on: the cost-benefit framework to compare negotiation support 

technology with face-to-face exchange, (2) media richness theory to examine 

different media of electronic communication, and (3) modeling ENS usage 

following an IS perspective. The advantages and disadvantages are highlighted as 

well as suggestions for future research. 

4 - Parametric Modeling of Preferences 

Jamshid Etezadi, Concordia University, Dept of Ds & Mis, 

1455 De Maisonneuve Blvd W, Montreal, QC, H3G 1M8, Canada, 

etezadi@jmsb.concordia.ca 

A new parametric function for modeling preferences is introduced. Using the 

least squares procedure, an algorithm for estimation of parameters and their 

standard deviations is developed which requires only a few assessment of 

preferences. Simulation studies show that the function is flexible and can 

represent a variety of known utility models. 

■ SD14 

Economics of IS - Analytical and Empirical 

Approaches 



Chair: Yonghua Ji, Assistant Professor of MIS, School of Business, 

University of Alberta, Edmonton, AB, T6G2R6, Canada, 

yji@ualberta.ca 

1 - On the Relationship of Information Technology with Other Inputs 

Dawei Zhang, PhD Student in MIS, University of Calgary, 

437 3111 34AVE NW, Calgary, AB, T2L 0Y2, Canada, 

dzhang@ucalgary.ca, Barrie R Nault, Zhuo Cheng, 

Hasan Mohammad 

In order to examine substitution of IT capital for other inputs, we adopt the lesswell-known 

Morishima Elasticity of Substitution (MES), and calibrate our 

estimates from regression by using Bayesian techniques to impose regularities. 

Our MES results show that IT capital and non-IT capital are Morishima 

complements when the price of IT capital changes. Our Bayesian analysis 

showed consistent results yet yielding some interesting questions regarding the 

fundamental production forms. 

2 - Revisiting Measurement of the Transaction and Information 

Sectors in the US Economy: 1971-2004 

Tracey Stock, PhD candidate in MIS, University of Calgary, 

1757 College Lane SW, Calgary, AB, T2S 2G9, Canada, 

tdstock@ucalgary.ca 

This paper is a longitudinal study of costs in the transaction and information 

sectors of the US economy. We extend the seminal work of Wallis and North that 

reported labor costs in the transaction sector between 1870 and 1970. We 

develop a research methodology that extends this work to 2004 and identifies 

information costs for the period. We interpret the relative proportion of labor 

cost in the transaction sector and information sector and provide a framework for 

study. 

3 - When and How Should Service Providers Adopt 

Internet Infomediaries? 

Mohammad Rahman, Assistant Professor of MIS, Haskayne 

School of Business, University of Calgary, 2500 University Drive 

NW, Calgary, AB, T2N 1N4, Canada, 

mohammad.rahman@haskayne.ucalgary.ca, Tolga Akcura, 

Zafer Ozdemir 

This research analyzes the motivational differences and pricing strategies in 

adopting Internet infomediaries for quality differentiated service providers. Why 

does a high quality service provider adopt a Shopbot or an infomediary and how 


38 

does the motivation differ compared to a low quality service provider? What are 

the implications of adopting such services on pricing strategies, service 

differentiation, and consumer welfare? 

■ SD15 

Group Decision Making 


Chair: Christopher Manning, Operations Analyst, Defence Science and 

Technology Organisation, DSTO - LOD 205 Labs, P.O. Box 1500, 

Edinburgh, SA, 5111, Australia, 

christopher.manning@dsto.defence.gov.au 

1 - Measuring the Impact of Emotions on Decision Making in Paper MV to MA13 

Electronic Markets: A Physio-economic Approach 

Christof Weinhardt, Universitaet Karlsruhe, Institute of 

Information Systems and Management, Karlsruhe, Germany, 

christof.weinhardt@iw.uni-karlsruhe.de, T.P Marc Adam, 

Matthias Gamer, Stefan Hey 

We propose physio-economics as a promising methodology for the design of 

electronic markets comprising strategic interaction, e.g. auctions and 

negotiations. The dynamic process of decision-making induces a complex 

interaction of both rational and emotional components. In order to better 

understand the emotional components, we extend the methodology of 

experimental economics by applying physiological parameters and provide a 

framework for analyzing electronic auctions. Further, first promising, empirical 

results emphasize the future potential of physio-economics. 

2 - The Impact of Group Composition in Reaching a Global Optimum 

Luis Arturo Pinzon-Salcedo, Universidad de los Andes, Cra 1a Este 

No.18A-10, Bogota, Colombia, lpinzon@uniandes.edu.co, 

Adriana Matilde Vargas-Zapata, Ricardo Barros 

Groups composed of individuals with an outstanding ability are usually expected 

to outperform other groups of less skilled persons in trying to solve problems. 

However, diversity may trump ability. School students participated in an 

experiment where they had to solve complex math problems. Groups composed 

of individuals who managed a wider set of heuristics were better at solving 

difficult problems than groups of more skillful students who had a better 

knowledge of a reduced set of heuristics. 

3 - Contextual Clustering 

Christopher Manning, Operations Analyst, Defence Science and 

Technology Organisation, DSTO - LOD 205 Labs, 

P.O. Box 1500, Edinburgh, SA, 5111, Australia, 

christopher.manning@dsto.defence.gov.au, Fred Bowden 

The Contextual Clustering technique is a grouping method designed to provide 

an auditable trail and logical path to the final grouping, with statistical 

confidence provided by the ability to change variables and compare the results. It 

is particularly suited to analysis of new concepts or future contexts, especially 

during the problem definition and prioritisation stages of a larger problem. It also 

allows the analysis of the dependence of particular characteristics of a given 

concept/context. 

■ SD17 

Regatta - H Main Lev. 

Software Tutorial 

Cluster: Software Tutorials 


1 - Maximal Software, Inc. - Recent News and Trends in 

Optimization and Modeling 

Bjarni Kristjansson,President, Maximal Software, Inc., 2111 

Wilson Boulevard, Suite 700, Arlington VA 22201, USA, 

bjarni@maximalsoftware.com 

In this software tutorial presentation, we will cover several major news and 

noteworthy trends in optimization that occurred during the past year, including: 

current state-of-the-art in optimization and modeling. The new MPL FREE 

Development and Academic Programs. New solvers from GUROBI and Microsoft. 

Purchase of ILOG and DASH by IBM and Fair Isaac. Emergence of grids, clouds 

and virtual machines.

■ SD18 

Sustainability and Profitability 



Chair: Glen Armstrong, University of Alberta, Renewable Resources, 

Edmonton, AB, T6G 2H1, Canada, gwa@ualberta.ca 

1 - Optimal Harvest Decision Considering Carbon Storage and 

Secondary Emissions 

Patrick Asante, University of Alberta, Renewable Resources, 

Edmonton, AB, T6G 2H1, Canada, pasante@ualberta.ca, 

Glen Armstrong, Wiktor Adamowicz 

We present the results from a discrete dynamic programming model used to 

determine the optimal harvest decision for a forest stand that provides benefits 

from timber harvest, carbon sequestered in forest and carbon storage in wood 

products. 

2 - Sustainability of Old-Forest Retention Targets with Stochastic 

Fire Disturbance 

Matt Conrod, University of Alberta, Renewable Resources, 

Edmonton, AB, T6G 2H1, Canada, matt.conrod@gov.sk.ca, 

Glen Armstrong 

We use a system comprised of an optimizing forest estate model and a Monte 

Carlo simulation model to examine the relationship between harvest levels and 

the probability of achieving old-forest retention targets with the inclusion of 

stochastic fire disturbance. 

3 - Unintended Consequences of Reforestation Policy: 

A Forest Level Analysis 

Glen Armstrong, University of Alberta, Renewable Resources, 

Edmonton, AB, T6G 2H1, Canada, gwa@ualberta.ca 

I examine the consequences of reforestation policies in boreal mixedwoods using 

proportional development type transitions in a forest estate model. 

■ SD19 

OR in Sports and the Public Sector 


Chair: Keith Willoughby, Associate Professor, University of 

Saskatchewan, 25 Campus Drive, Saskatoon, SK, S7N 5A7, Canada, 

willoughby@edwards.usask.ca 

1 - Optimal Multi-level Allocation of HIV Prevention Resources 

Monali Malvankar, PhD Candidate, Ivey School of Business, 

1151 Richmond St N, London, ON, N6A3K7, Canada, 

mmalvankar@ivey.uwo.ca, Greg Zaric, Xinghao(Shaun) Yan 

HIV prevention funds normally traverse through multiple-levels of distribution 

and decision making. Decision makers at each level use equity-based heuristics 

that may lead to sub-optimal allocation of HIV prevention resources. We model 

multiple incentive schemes for multiple-region multi-level HIV resource 

allocation process to promote optimal allocation of HIV prevention funds. 

2 - Allocation Policies for DRE Voting Machines to 

Maximize Voter Equity 

Muer Yang, University of Cincinnati, 501 Lindner Hall, University 

of Cincinnati, Cincinnati, OH, 45221, United States of America, 

yangmr@email.uc.edu, Mike Fry 

We examine policies for allocating direct-recording electronic voting machines to 

maximize voter wait time equity. Equity refers to the belief that all voters should 

receive approximately equivalent wait time experiences so that no groups of 

voters are disadvantaged or disenfranchised. We consider multiple modeling 

approaches and solution methodologies including closed-form queueing 

approximations and simulation-based heuristics. 

3 - Using Dynamic Programming to Determine an Optimal Strategy 

in a Contract Bridge Tournament 

Nicholas Beaumont, Dr, Monash University, Department of 

Management, P.O. Box 197, Caulfield East, 3124, Australia, 

nicholas.beaumont@buseco.monash.edu.au 

We demonstrate that, in some kinds of bridge (a card game) tournaments and in 

some circumstances, players can profit by deliberately throwing matches thereby 

drawing weaker opponents in the next round. Optimal strategies depend on the 

relative rewards for winning individual matches and finishing well, players’ 

abilities, placings at the end of each round, and the round. Dynamic 

programming is used to obtain optimal strategies. We stress that “throwing” is 

unethical and illegal albeit tempting. 


39 

4 - On Bended Knee: Conceding a Safety in Canadian Football 

Keith Willoughby, Associate Professor, University of 

Saskatchewan, 25 Campus Drive, Saskatoon, SK, S7N 5A7, 

Canada, willoughby@edwards.usask.ca, Trevor Hardy, 

Butch Kamena 

When punting deep from one’s end of the field, a popular strategy in Canadian 

football is to “concede a safety”. This gives two points to the opponent but may 

allow the punting team to gain a field position advantage. Using data from a 

recent Canadian Football League season, we explore the merit of this strategy 

and show cases in which punting the football is preferred over conceding a 

safety. Our analysis provides useful advice to Canadian football enthusiasts. 

■ SD20 

SD20 

Risk Management II 


Chair: Roque Zim, Professor, Universidade de Caxias do Sul, Rua 

Francisco G. Vargas, 1130, Caxias do Sul, RS, 95070560, Brazil, 

roque@majorem.com.br 

1 - Optimizing Credit Risk 

Helmut Mausser, Algorithmics Inc., 185 Spadina Ave, Toronto, 

Canada, hmausser@algorithmics.com, Ian Iscoe, Alex Kreinin, 

Oleksandr Romanko 

We describe and compare several optimization models that derive from a 

structural, or Merton-type, model for credit risk. In particular, we consider 

formulations that combine simulation with analytic approximations. 

2 - Dynamic Risk Minimization in Pension Planning 

Sona Kilianova, Comenius University, FMFI UK, Mlynska dolina, 

Bratislava, 84248, Slovakia, sona.kilianova@fmph.uniba.sk 

In many countries, a part of the pension system is based on a funded pillar, in 

which future pensioners save for their old-age pension by regular contributions 

to one or more pension funds. The pension funds differ in their risk profiles. We 

present a model for finding an optimal strategy of switching between the funds 

in time. The objective is to minimize the risk associated with the investment, 

measured by the static and dynamic conditional value-at-risk measure. The 

model leads to a large-scale linear program, which we solve on a scenario tree. 

We focus on implementation aspects of the problem. 

3 - Optionality in Hedge Fund Returns 

Luis Seco, Professor, University of Toronto, Department of 

Mathematics, Toronto, On, M5S3G3, Canada, 

seco@math.utoronto.ca 

In this talk we review a mathematical model of a hedge fund as a credit 

derivative. This model is consistent with the optionality that hedge funds exhibit 

at the prime broker level, and it has the property that it is able to produce nonnormal 

returns for the fund return distribution. In this context, calibration of the 

model parameters is the analog of the implied volatility approach for option 

pricing, which is obtained through optimization algorithms. 

4 - The Effects of Disclosure on Risk Management 

Roque Zim, Professor, Universidade de Caxias do Sul, Rua 

Francisco G. Vargas, 1130, Caxias do Sul, RS, 95070560, Brazil, 

roque@majorem.com.br, Eric Dorion, Luciana Ribeiro Chalela 

Company data have assumed each time a more important role for the financial 

environment. The increase in disclosure level has an effect in raising agent’s 

confidence; reducing informational asymmetry and ventures capital costs. This 

theoretical essay reviews the literature on the main disclosures models and its 

effect on the reduction of the information and agency problems; as well as the 

relations between the information and the accounting of the derivatives in a risk 

management process.

SD21 

■ SD21 

Decision Support Applications II 


Chair: Sylvain Ganter, University of Ottawa, Telfer School of 

Management, 55 Laurier Ave E, Ottawa, ON, K1N 6N5, Canada, 

sgant069@uottawa.ca 

1 - The Extent of ERP Implementation and Practical Difficulties 

Within Organizations in an Emerging Economy 

Dharmendra Naidu, Tutor, The University of the South Pacific, 

School of Accounting and Finance, Suva, 679, Fiji, 

naidu_d@usp.ac.fj, Arvind Patel 

This paper explores the extent of ERP implementation in companies in an 

emerging economy. The paper employs an experimental approach to seek 

responses to queries in relation to ERP implementations, its benefits, resulted 

changes and practical difficulties faced by companies in Fiji. Major emphasis is 

placed on the practical difficulties faced by companies. In conclusion the paper 

explains various ways to overcome practical difficulties faced by companies in 

emerging economies. 

2 - Operations Planning of the Columbia River System: 

A Reinforcement Learning Approach 

Nazanin Shabani, UBC, 6335 Thunderbird Crescent, Vancouver, 

Canada, nshabani@interchange.ubc.ca, Ziad Shawwash, 

Alaa Abdalla, Thomas Siu 

Operation planning of the Columbia River system is complicated because of 

uncertainty in its inflows, electricity prices and complex treaty operation. To 

overcome the curse of dimensionality, we developed a reinforcement learning 

(RL) algorithm that interacts with a model of the environment. The model 

uncertainty is considered by a set of scenarios for inflows and electricity market 

prices in Alberta and the US. We present results of our research on using RL for 

hydro system operations planning. 

3 - Fisheries Systems Strategy Evaluation 

Dan Lane, Professor, University of Ottawa, Telfer School of 

Management, 55 Laurier Av E, Ottawa, ON, K1N 6N5, Canada, 

dlane@uottawa.ca 

This paper presents a decision support system for the multicriteria evaluation of 

strategies for effective management of marine resources. The fishery system is 

described along multiple dimensions with targets for resource sustainability, 

economic viability, social stability, and administrative efficiency. Experimental 

analysis and results are illustrated for Atlantic commercial fisheries. 

4 - Modelling the Grand Banks Fishing Fleet Configuration for 

Economic Viability 

Sylvain Ganter, University of Ottawa, Telfer School of 

Management, 55 Laurier Ave E, Ottawa, ON, K1N 6N5, Canada, 

sgant069@uottawa.ca 

The Grand Banks fishing industry has been faced with several crises. Using a 

linear programming model we derive optimal configurations of the Grand Banks 

commercial fishing fleet under a variety of scenarios. We then define a 

configuration that aims to improve the economic viability of the fishing fleet. 


40 

Monday, 8:00am - 9:30am 

■ MA01 

Sustainable Transport Planning and Assessment I 



Chair: Anjali Awasthi, Assistant Professor, Concordia University, 

EV 6.221, 1515, Ste Catherine Street West, Montreal, QC, H3G2W1, 

Canada, awasthi@ciise.concordia.ca 

1 - OR and MS Inputs to Decisions about Sustainable 

Transport Practices 

Barry Wellar, Professor Emeritus, University of Ottawa, 

Department of Geography, Ottawa, ON, K1N 6N5, Canada, 

wellarb@uottawa.ca, William Garrison 

This presentation discusses the results of a 2008-2009 Transport Canada project, 

Methodologies for Identifying and Ranking Sustainable Transport Practices in 

Urban Regions, and discusses project findings about whether and how operations 

research and management science methods and techniques are used and could 

be used in making decisions to identify, adopt, or implement sustainable 

transport practices. 

2 - Strategic Planning of National/Regional Freight Transportation 

Systems: An Analysis 

Rajeev Namboothiri, CIRRELT - CRT, C.P. 6128, succ. Centre-ville, 

Montreal,, Canada, rajeev@crt.umontreal.ca, Jean Damay, 

Michel Gendreau, Teodor Gabriel Crainic 

This talk presents an evaluation platform dedicated to multimodal, multi-product 

freight transportation systems within the context of strategic national/regional 

planning, and preliminary results examining planned scenarios and policies. A 

comprehensive and realistic representation of the current state of such a system 

was developed, and the results provide detailed analysis of the impact of policylevel 

and technological advancement initiatives on the day-to-day operations of 

the system. 

3 - Determinants of Carsharing Usage: The Case of 

La Rochelle, France 

Anjali Awasthi, Assistant Professor, Concordia University, EV 

6.221, 1515, Ste Catherine Street West, Montreal, QC, H3G2W1, 

Canada, awasthi@ciise.concordia.ca, Satyaveer S Chauhan 

Carsharing is an alternative form of vehicle ownership. Assessment of user needs 

and preferences is vital to promote its usage and make the service viable. This 

talk presents the results obtained from a pre-implementation questionnaire study 

on carsharing in La Rochelle, France. 

■ MA02 

Combinatorial Optimization 

Cluster: Optimization/Combinatorial Optimization 


Chair: Antoine Deza, Associate Professor, McMaster University, 

Department of Computing and Software, 1280 Main Street, 

West, Hamilton, ON, L8S 4K1, Canada, deza@mcmaster.ca 

1 - Flexible Isomorphism Pruning 

Jim Ostrowski, University of Waterloo, 200 University Avenue 

West, Waterloo, Canada, jao204@gmail.com, Jeff Linderoth 

Isomorphism Pruning is an extremely powerful symmetry breaking tool when 

applied to integer programs. However, Isomorphism Pruning has the limitation 

that the algorithm must use a restricted choice of branching variables during the 

search. In this talk, we show how remove this limitation – modifying 

isomorphism pruning to allow for complete flexibility in the choice of branching 

variable. Computational results showing the benefit of this flexibility will be 

given. 

2 - A Model of All Directed Cycles Neither Covered By a 

Graph Nor its Complement 

Steve Gismondi, Assistant Professor, University of Guelph, 

2 College Avenue West, Guelph, ON, gismondi@uoguelph.ca 

A polynomial sized extended formulation of the set of directed Hamilton tours 

that use at least one edge in a graph and at least one edge not in a graph, is 

presented. Projection and lifting techniques, combined with the novel idea of 

interpreting tours as permutations i.e. extrema of the Birkhoff polytope, are 

illustrated. The talk concludes with a discussion of the problem of deciding 

Hamiltonicity as the problem of deciding non-equivalence of solution sets of 

pairs of systems of equations.

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