{"title":"Managing consumer bracketing purchases: Optimal return policy analysis","authors":"Xiaohong Chen , Lixia Tan , Fuqiang Wang","doi":"10.1016/j.ijpe.2024.109321","DOIUrl":"10.1016/j.ijpe.2024.109321","url":null,"abstract":"<div><p>This paper investigates the optimal pricing and return policies of an online retailer selling a product with multiple versions to consumers facing valuation uncertainty. Consumers resolve their uncertainty through bracketing, a practice wherein they purchase multiple versions with the intention of keeping the best fit and returning the rest. By establishing a Stackelberg game between the retailer and consumers, we investigate two return policies: one offering full refunds with purchase limits, and the other offering partial refunds (<em>Q</em> or <em>R</em>) under exogenous and endogenous pricing (<em>N</em> or <em>P</em>), yielding four scenarios: <em>NQ</em>, <em>PQ</em>, <em>NR</em>, <em>PR</em>. Our study provides key insights into optimal return policies for retailers, demonstrating that stringent return policies may not necessarily be more profitable compared to lenient ones when dealing with consumer bracketing. In the case of exogenous pricing, retailers providing convenient returns are better off charging return fees, while those facing cumbersome returns should offer full refunds under certain conditions. When jointly leveraging pricing, retailers have the flexibility to choose between the full-refund and partial-refund policies. We obtain several interesting findings. First, as the mismatch probability increases, retailers tend to charge higher return fees in Scenario <em>PR</em>, while adjusting optimal decisions (i.e., refund under the partial-refund policy and purchase limit under the full-refund policy) non-monotonically in other scenarios. Second, consumers receive nonnegative expected utility in the exogenous pricing scenario, whereas zero in the endogenous pricing scenario. Third, when returns become sufficiently convenient, retailers adopting the partial-refund policy under endogenous pricing shift toward offering full refunds. In addition, when considering heterogeneous consumers, we discover that in some cases, retailers can benefit from consumer bracketing.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141569675","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The blockchain adoption strategies of online retailer in a dual-channel supply chain","authors":"Qihui Lu , Changhua Liao , Xiangfeng Chen","doi":"10.1016/j.ijpe.2024.109322","DOIUrl":"https://doi.org/10.1016/j.ijpe.2024.109322","url":null,"abstract":"<div><p>Blockchain technology has emerged as a promising solution to address consumer distrust caused by the lack of transparency in online channels, thereby promoting the further growth of these channels. In this study, we focus on a dual-channel supply chain comprising a supplier, an online retailer, and an offline retailer, and offering two categories of products, convenience preference product (CPP) and trust preference product (TPP), based on consumers’ purchasing preference. Specifically, we consider three different blockchain adoption models: the online-retailer-based model (Model EB), the supplier-based model offering to solely the online retailer (Model SB), and the supplier-based model offering to both online and offline retailers (Model SA). We show that the online retailer always benefits from adopting blockchain for the CPP. However, for the TPP, only the cost coefficient of traceability by blockchain is low, and a Pareto improvement of blockchain adoption for all the players can be found under certain conditions. We also show that the online retailer benefits from Model SB when the cost coefficient is high, and from Model SA when the competition intensity is low (or high) and the cost coefficient is high (or small-medium). Furthermore, we compare the different blockchain adoption models’ impact on the players’ performance in pairs and inspect the online retailer’s optimal blockchain adoption strategy. Through extended study, we find that blockchain adoption for the TPP consistently leads to an increase in social welfare. However, for the CPP, social welfare only improves when both the competition intensity and the cost coefficient are low.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141540589","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Ioannis Koliousis , Abdulrahman Al-Surmi , Mahdi Bashiri
{"title":"Artificial intelligence and policy making; can small municipalities enable digital transformation?","authors":"Ioannis Koliousis , Abdulrahman Al-Surmi , Mahdi Bashiri","doi":"10.1016/j.ijpe.2024.109324","DOIUrl":"https://doi.org/10.1016/j.ijpe.2024.109324","url":null,"abstract":"<div><p>This study investigates digital transformation and the usability of emerging technologies in policymaking. Prior studies categorised digital transformation into three distinct phases of digitisation, digitalisation, and digital transformation. They mainly focus on the operational or functional levels, however, this study considers digital transformation at the strategic level. Previous studies confirmed that using new emerging AI-based technologies will enable organisations to use digital transformation to achieve higher efficiency. A novel methodological AI-based approach for policymaking was constructed into three phases through the lens of organisational learning theory. The proposed framework was validated using a case study in the transportation industry of a small municipality. In the selected case study, a confirmatory model was developed and tested utilising the Structural Equation Modelling with data collected from a survey of 494 local stakeholders. Artificial Neural Network was utilised to predict and then to identify the most appropriate policy according to cost, feasibility, and impact criteria amongst six policies extracted from the literature. The results from this research confirm that utilisation of the AI-based strategic decision-making through the proposed generative AI platform at strategic level outperforms human decision-making in terms of applicability, efficiency, and accuracy.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-06-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0925527324001816/pdfft?md5=d5a6f78050e7154306444c9ba6213fd1&pid=1-s2.0-S0925527324001816-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141480612","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Yu-Chung Tsao , Habtamu Tesfaye Balo , Carmen Kar Hang Lee
{"title":"Resilient and sustainable semiconductor supply chain network design under trade credit and uncertainty of supply and demand","authors":"Yu-Chung Tsao , Habtamu Tesfaye Balo , Carmen Kar Hang Lee","doi":"10.1016/j.ijpe.2024.109318","DOIUrl":"https://doi.org/10.1016/j.ijpe.2024.109318","url":null,"abstract":"<div><p>Supply Chain (SC) performance appraisal extends beyond economic evaluation to encompass environmental and social impacts, as well as resilience to supply and demand disruptions. Thus, SC network design decisions should simultaneously optimize all these performance metrics as a primary objective. However, existing studies optimized these objectives independently or in a limited scope, failing to comprehensively address the interconnected nature of these performance metrics. Therefore, this study proposes a mixed integer linear programming (MILP) model with four objectives to address a multi-tier resilient and sustainable semiconductor SC network design problem under trade credit, supply, and demand uncertainties. The model aims to determine the optimal number and location of various facilities, the amount to order from suppliers, economic production quantities, quantity allocation between SC entities, and ideal supplier selections. The proposed supply chain network contributes to the global effort to reduce carbon emissions and enhance the circular economy by considering carbon trading, recycling, and the proper disposal of end-of life products. Uncertainties in input parameters are addressed using a fuzzy programming approach, while lexicographic optimization and the ɛ-constraint method are used to solve the proposed model. This paper presents a numerical example to illustrate the applicability of the proposed model and provide managerial insights. The numerical analysis results show that provided an appropriate confidence level for the uncertain parameters, the sets of Pareto optimal solutions can be generated. And it also shows that the total SC cost increases with decreasing carbon emissions level and increasing job opportunities created. This research advances sustainable and resilient supply chain management practices while offering practical guidance for decision-makers in real-world contexts.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-06-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141540588","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Untangling cross-border interfirm effects in SMEs’ working capital financing: A cyber-behavioral signaling perspective","authors":"Lan Wang , Liyuan Song , Yudong Yang , Xinge Ding","doi":"10.1016/j.ijpe.2024.109320","DOIUrl":"https://doi.org/10.1016/j.ijpe.2024.109320","url":null,"abstract":"<div><p>This study analyzes the intricate dynamics of cross-border interfirm interactions in the working capital financing of small and medium-sized enterprises (SMEs) by using a novel cyber-behavioral signaling perspective. It emphasizes the pivotal role played by the generation and transmission of credible signals to mitigate informational disparities inherent in SME finance. While extant literature predominantly focuses on physical-centric signal types, our work sheds light on SMEs’ strategic use of behavioral factors in the network ecology to generate and transmit signals. Grounded in signaling theory and informed by network ecology, we propose that network ecology constitutes a fertile environment for SMEs to effectively communicate their creditworthiness through high-quality signals. Using survey data from 276 Chinese SMEs, our empirical analysis reveals that cross-border interfirm effects—both unintentional network spillover and intentional network transitivity—significantly bolster SME financing outcomes. Leveraging digital knowledge repositories mediates the strength and effectiveness of these signals, and exerts an even stronger positive impact on SME working capital financing in the absence of well-established normative mechanisms in the wider business ecosystem. By integrating a cyber-behavioral dimension into signaling theory within the SME financing domain, this research offers new understanding on how SMEs can harness the untapped power of their interconnected relationships to secure external capital. The study contributes to theory and practice by elucidating pathways for SMEs to navigate complex interfirm linkages to facilitate improved access to working capital.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-06-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141480616","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Felix Kissi Dankyira , Dominic Essuman , Nathaniel Boso , Henry Ataburo , Emmanuel Quansah
{"title":"Clarifying supply chain disruption and operational resilience relationship from a threat-rigidity perspective: Evidence from small and medium-sized enterprises","authors":"Felix Kissi Dankyira , Dominic Essuman , Nathaniel Boso , Henry Ataburo , Emmanuel Quansah","doi":"10.1016/j.ijpe.2024.109314","DOIUrl":"https://doi.org/10.1016/j.ijpe.2024.109314","url":null,"abstract":"<div><p>Given the significant risk supply chain disruptions pose to businesses, scholars and experts presume such events encourage resilience-building efforts. This study uses the threat-rigidity theory to question this normative assumption by proposing that supply chain disruption can trigger threat interpretation bias, which undermines operational resilience. Specifically, the study contends that threat interpretation bias negatively mediates the relationship between supply chain disruption and operational resilience, particularly in low disruption orientation circumstances. An empirical analysis of survey data from 259 small and medium-sized enterprises in Ghana using covariance-based structural equation modeling supports these theoretical predictions. The results indicate that supply chain disruption increases threat interpretation bias, which in turn reduces operational resilience. The negative effect of threat interpretation bias on operational resilience is stronger when disruption orientation is low than when it is high. These results offer an enhanced understanding of the supply chain disruption–resilience link while shedding light on how firms can manage threat interpretation bias to improve operational resilience.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-06-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0925527324001713/pdfft?md5=6c6a632440fc80e40cc62d51c771aca7&pid=1-s2.0-S0925527324001713-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141438089","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Integration and substitution in hybrid manufacturing and refurbishing systems","authors":"Y. Boutarfa , A. Senoussi , N. Brahimi , T. Aouam","doi":"10.1016/j.ijpe.2024.109308","DOIUrl":"https://doi.org/10.1016/j.ijpe.2024.109308","url":null,"abstract":"<div><p>Inspired by a real-work case, this paper introduces a profit maximization model for dynamic lot sizing considering substitution and multiple usage of returns for refurbishing at different levels of quality or for disassembly to extract key parts that will be used in the manufacturing process. This model allows studying the interactions between different types of returns and decisions. To analyze the impact of uncertainty on these interactions, we develop a robust two-stage stochastic program with uncertainty on demands and returns. The resulting problems are mixed-integer linear programs that we solve using an efficient relax-and-fix and fix-and-optimize heuristic. Extensive numerical experiments are conducted to study the different trade-offs when integrating multi-usage of returns with substitution and accordingly derive managerial insights. The experiments have revealed, for example, that: (i) the profit margin of the refurbished items is the main determinant of the total profit and when such margin in high, the total profit becomes more sensitive to different cost variations; (ii) collection efficiency becomes very sensitive to collection cost and much less sensitive to refurbishing cost especially with large profit margins; (iii) when demand and returns are uncertain parameters, substitution becomes the best option as uncertainty and prices increase; (iv) when the gap between prices of different quality levels is high, lost sales occur mainly on the lowest quality product and downgrading decreases together with substitution; and (v) Sharing the production line between refurbishing and manufacturing for low-quality products is highly motivated by small upgrading costs and their substitution level increases with increasing upgrading costs.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0925527324001658/pdfft?md5=1a2cf7c810edf91227b0af40671ed90e&pid=1-s2.0-S0925527324001658-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141480615","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Carbon Tax vs. Carbon Cap-and-Trade: Implementation of carbon border tax in cross-regional production","authors":"Jiawen Hua , Kai Wang , Jun Lin , Yanjun Qian","doi":"10.1016/j.ijpe.2024.109317","DOIUrl":"https://doi.org/10.1016/j.ijpe.2024.109317","url":null,"abstract":"<div><p>Carbon Tax and Carbon Cap-and-Trade policies, as the primary carbon pricing instruments, are designed to reduce greenhouse gas emissions. However, inconsistent global regulations for emissions may lead to emissions leakage, as firms strategically relocate production to regions with less stringent controls. This study contributes to existing research by evaluating Carbon Tax and Carbon Cap-and-Trade policies in conjunction with the impending Carbon Border Tax (CBT), designed to mitigate emissions leakage from cross-regional production. Specifically, we examine a firm's equilibrium strategies in investment and production in both domestic and offshore regions under two different carbon pricing instruments while subject to the CBT. The analysis includes a comparative assessment of technology investment, total greenhouse gas emissions, and social welfare. Our findings indicate that the Carbon Tax policy can be associated with lower emission intensity, albeit generating greater total emissions compared to the Carbon Cap-and-Trade policy. Notably, the CBT can serve as an equivalent stimulant for technology investment and a reducer of aggregate emissions under both pricing instruments. Moreover, the Carbon Cap-and-Trade policy proves more beneficial in terms of social welfare when the firm's optimal strategy is confined to either domestic or offshore production. Conversely, the Carbon Tax policy yields higher social welfare in cases of high emission prices when the firm's optimal strategy is cross-regional production. The introduction of the CBT enlarges the set of conditions under which the Carbon Tax policy proves more advantageous for social welfare.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141438090","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Incorporating uncertain human behavior in production scheduling for enhanced productivity in Industry 5.0 context","authors":"Nourddine Bouaziz , Belgacem Bettayeb , M’hammed Sahnoun , Adnan Yassine","doi":"10.1016/j.ijpe.2024.109311","DOIUrl":"https://doi.org/10.1016/j.ijpe.2024.109311","url":null,"abstract":"<div><p>Human-centered production systems are of increasing interest to researchers, especially with the advent of the Industry 5.0 paradigm. Most research into production scheduling has long neglected human workers’ specific roles and unpredictable behavior in a production system, treating them as machines with deterministic behavior. This work studies the impact of human operational behavior on the performance of a production system and proposes an optimization model to allocate workers’ profiles to workstations. We modeled the punctuality profile as a Markov chain representing a worker’s productive and non-productive states. We developed a simulation process based on the multi-agent system (MAS) paradigm to test the effectiveness of the proposed model and to measure the impact of workers’ behaviors and their assignments to different workstations on the productivity of the workshop. A non-linear programming model is also proposed to provide the optimal assignment of workers to workstations while maximizing the throughput of a dual-resource-constrained flow-shop production system for a given mix of production. The results obtained highlight the significant impact of human operator behavior on the performance of a production system. The findings demonstrate the importance of incorporating human behavior models into the decision-making process for assigning workers to workstations based on their operational profiles.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141480614","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jinting Wang , Pengfei Guo , Yilin Wang , Lingjiao Zhang
{"title":"How should restaurants operate in the omnichannel era? A queueing game approach","authors":"Jinting Wang , Pengfei Guo , Yilin Wang , Lingjiao Zhang","doi":"10.1016/j.ijpe.2024.109306","DOIUrl":"https://doi.org/10.1016/j.ijpe.2024.109306","url":null,"abstract":"<div><p>Omnichannel service delivery, which combines online and offline sales channels, is transforming many traditional service businesses with the advancement of IT technologies and the impact of the pandemic. This paper examines whether a service provider such as a restaurant should operate through dine-in only, delivery only, or omnichannel (i.e., using both channels simultaneously). For the omnichannel mode, we further compare a pooling system, where a single server handles both dine-in and delivery orders, and a dedicated system, where the restaurant uses separate servers to handle offline and online orders respectively. We focus on the restaurants that do not have their own online ordering systems and must rely on a third-party platform to receive and process online orders. The platform charges a commission fee to the restaurant for each online order. We model the interactions among the three parties: platforms, restaurants, and customers, as a Stackelberg game. To find the equilibrium, we first analyze the customer choice between online and offline channels, then study the restaurant’s decision on the channel choice and, if omnichannel is chosen, whether to adopt a pooling or dedicated system, and finally study the platform’s decision on the commission rate. We show that the pooling system yields a higher profit and throughput for the restaurant, while the dedicated system only generates a larger social welfare than the pooling system when the commission rate is relatively high. Interestingly, we reveal that under the dedicated system, the platform has an incentive to increase the commission rate to extract more profits from the delivery channel, while the pooling system can mitigate this platform’s opportunistic behavior.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141480613","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}