{"title":"Optimizing Attended Home Delivery: Multiple recovery options and customer availability profiles to face synchronization failures","authors":"Valentina Bonomi , Daniele Manerba , Renata Mansini , Roberto Zanotti","doi":"10.1016/j.ijpe.2024.109463","DOIUrl":"10.1016/j.ijpe.2024.109463","url":null,"abstract":"<div><div>In the growing sector of Attended Home Delivery, unsynchronized deliveries between couriers and recipients affect both customers’ satisfaction and companies’ costs. Hence, reducing such failures improves companies’ service quality and logistics efficiency. To address this issue, we study an Attended Home Delivery Problem with Recovery Options (AHDPRO) in which customers specify their probability of being at home during different timeslots of the day and their preferred recovery option in case of a synchronization failure. The options include leaving the package in a predefined safe location, bringing it to a generic collection point, or scheduling a second delivery attempt. Each alternative involves different costs and, in most cases, additional operational decisions. The AHDPRO aims to complete all customer deliveries while minimizing overall routing times as well as the overall penalty due to the recovery actions implemented and weighted by the probability of a synchronization failure to occur. We propose a branch-and-cut algorithm, including valid inequalities and heuristic procedures, to solve a Mixed-Integer Linear Programming model based on an expanded graph. Using the developed method as a tool for evaluating costs and operations, we conduct an experimental campaign on scenarios adapted from the literature involving lexicographic-based optimization procedures able to address the multiple attributes of the solutions. The results obtained allow us to assess the impact of the different recovery options on the optimal solutions and their values. Additionally, the results yield several managerial insights for companies operating in the Attended Home Delivery sector, such as the timeslot length, perceived service quality, and other key operational factors contributing to efficient planning and improved customer satisfaction.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109463"},"PeriodicalIF":9.8,"publicationDate":"2024-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142706874","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":"Strategic interactions between manufacturer channel choice and platform entry in a dual-market system","authors":"Zhaofang Mao , Ruiying Yuan , Zuo-Jun Max Shen","doi":"10.1016/j.ijpe.2024.109462","DOIUrl":"10.1016/j.ijpe.2024.109462","url":null,"abstract":"<div><div>The full lifecycle concept has prompted sellers to provide ancillary services or products based on traditional product sales, leading to a dual-market system consisting of a base market and an add-on market. In this study, we consider a manufacturer selling base products through an online retail platform and then selling add-on products directly to consumers who have purchased base products. We investigate how the manufacturer’s distribution channel strategy in the base market interacts with the platform’s entry strategy in the add-on market. Results show that under the reselling (agency) channel, the platform’s entry of the add-on market enables the manufacturer to increase the wholesale price (reduce selling quantities to enjoy a higher margin) in the base market. We call this <em>wholesale price effect (sales-control effect)</em> caused by the platform’s entry. If the manufacturer adopts the agency (reselling) channel in the base market, the platform prefers (not) to enter the add-on market to compete with the manufacturer; if the manufacturer adopts the dual-channel, the platform enters only if both the commission rate and channel competition are high. Furthermore, the manufacturer prefers the dual-channel when both the commission rate and channel competition are low. Interestingly, due to the interactions between the two firms, the manufacturer will adopt the agency channel instead when the commission rate is extremely high. Finally, we examine conditions under which the platform has incentives to allow the manufacturer to change from a single-channel to a dual-channel in the base market.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109462"},"PeriodicalIF":9.8,"publicationDate":"2024-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652521","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":"Competition and organizational structure co-optimization of OEMs in a product-service supply chain","authors":"Kai Li , Mengqing Zhang , Tao Zhou , Bohai Liu","doi":"10.1016/j.ijpe.2024.109457","DOIUrl":"10.1016/j.ijpe.2024.109457","url":null,"abstract":"<div><div>Smart Connected Products (SCPs) and Digital Services (DSs) play pivotal roles in facilitating the digital and intelligent transformation of the manufacturing industry. In the context of the service-oriented transformation of manufacturing, SCPs are sold by Original Equipment Manufacturers (OEMs) via a retailer, whereas DSs are either provided directly by OEMs or indirectly through the retailer, thereby forming a product-service supply chain. This paper constructs a three-stage dynamic game model and analyzes two DS strategies, i.e., integrated and separated DS strategies, for competing OEMs by integrating and separating manufacturing and DS departments. These strategies encompass four scenarios: both OEMs integrate them, both separate them, and one OEM integrates while the other separates them. We analyze the equilibrium DS levels, the prices of SCPs and DSs, demands, and profits in four scenarios, and explore the service and pricing decisions of supply chain members at equilibrium. The results indicate that OEMs can achieve higher profitability by separating manufacturing and DS departments as competition intensity increases within a certain range. Secondly, when both OEMs adopt the same strategy, integration of departments is more profitable if competition is low, whereas separation yields higher profits when competition is intense. Interestingly, two Nash equilibria emerge: an OEM achieves the highest profit by adopting an integrated DS strategy in an asymmetric scenario when competition is weak and digital R&D is challenging. Conversely, both OEMs can reach a Nash equilibrium by separating their departments when competition is intense and digital R&D is relatively simple. Thirdly, from the perspective of the retailer and the entire supply chain, integrating manufacturing-service at both OEMs provides the highest return when competition is low. However, under intense competition, the highest profits are achieved when OEMs adopt different DS strategies. Finally, in a highly competitive market without a retailer, an asymmetric scenario proves most profitable when digital R&D investment is low, whereas separating manufacturing-service yields the highest profits when digital R&D investment is high.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109457"},"PeriodicalIF":9.8,"publicationDate":"2024-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652518","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}
Leeya Hendricks , Paul Matthyssens , Christian Kowalkowski
{"title":"The co-evolution of actor engagement and value co-creation on digital platforms","authors":"Leeya Hendricks , Paul Matthyssens , Christian Kowalkowski","doi":"10.1016/j.ijpe.2024.109467","DOIUrl":"10.1016/j.ijpe.2024.109467","url":null,"abstract":"<div><div>Increasingly, digital platforms connect suppliers, customers, and other ecosystem parties, facilitating the introduction of various Platform-as-a-Service (PaaS) offerings. This study examines the co-evolution of actor engagement (AE), reflecting actors’ dispositions to invest resources in interactions, and value co-creation (VCC), demonstrated through reciprocal resource integration. The focus is on PaaS initiatives in the asset management industry. Using a comparative case study approach, we analyze two fintech-generated PaaS offerings: a freemium model and a subscription-based model. Our findings reveal distinct pathways for platform development and scaling, driven by the interplay between AE and VCC. The freemium model fosters a “viral” community-building path, where early VCC serves as the engine for AE-VCC co-evolution. Conversely, the subscription model follows a “controlled” ecosystem-building path, with AE driving the process. We observe a gradual involvement of additional ecosystem partners, leading to upgraded solutions, expanded PaaS offerings, and platform upscaling. We identify key factors influencing these dynamics, including business model characteristics, actor roles, and feedback loops. Our study contributes to the literature on digital servitization and platform ecosystems by highlighting the importance of integrating AE and VCC practices to enhance platform utilization and scalability. We propose a framework and research propositions to guide future studies on PaaS development in complex, institutionalized industries. These insights also provide implications for managers aiming to implement effective PaaS strategies and foster innovation in the financial services sector.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109467"},"PeriodicalIF":9.8,"publicationDate":"2024-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652520","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}
Xueying Long , Quang Bui , Grady Oktavian , Daniel F. Schmidt , Christoph Bergmeir , Rakshitha Godahewa , Seong Per Lee , Kaifeng Zhao , Paul Condylis
{"title":"Scalable probabilistic forecasting in retail with gradient boosted trees: A practitioner’s approach","authors":"Xueying Long , Quang Bui , Grady Oktavian , Daniel F. Schmidt , Christoph Bergmeir , Rakshitha Godahewa , Seong Per Lee , Kaifeng Zhao , Paul Condylis","doi":"10.1016/j.ijpe.2024.109449","DOIUrl":"10.1016/j.ijpe.2024.109449","url":null,"abstract":"<div><div>The recent M5 competition has advanced the state-of-the-art in retail forecasting. However, there are important differences between the competition challenge and the challenges we face in a large e-commerce company. The datasets in our scenario are larger (hundreds of thousands of time series), and e-commerce can afford to have a larger stock assortment than brick-and-mortar retailers, leading to more intermittent data. To scale to larger dataset sizes with feasible computational effort, we investigate a two-layer hierarchy, namely the decision level with product unit sales and an aggregated level, e.g., through warehouse-product aggregation, reducing the number of series and degree of intermittency. We propose a top-down approach to forecasting at the aggregated level, and then disaggregate to obtain decision-level forecasts. Probabilistic forecasts are generated under distributional assumptions. The proposed scalable method is evaluated on both a large proprietary dataset, as well as the publicly available Corporación Favorita and M5 datasets. We are able to show the differences in characteristics of the e-commerce and brick-and-mortar retail datasets. Notably, our top-down forecasting framework enters the top 50 of the original M5 competition, even with models trained at a higher level under a much simpler setting.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109449"},"PeriodicalIF":9.8,"publicationDate":"2024-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652519","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}
Nguyen Khoi Tran , Hercules Haralambides , Theo Notteboom , Kevin Cullinane
{"title":"The costs of maritime supply chain disruptions: The case of the Suez Canal blockage by the ‘Ever Given’ megaship","authors":"Nguyen Khoi Tran , Hercules Haralambides , Theo Notteboom , Kevin Cullinane","doi":"10.1016/j.ijpe.2024.109464","DOIUrl":"10.1016/j.ijpe.2024.109464","url":null,"abstract":"<div><div>In March 2021, the six-day blockage of the Suez Canal, caused by the grounding of Evergreen's ‘Ever Given’ containership, created chaos in global trade. The 400-m giant lodged horizontally in a 265-m wide stretch of the canal and the efforts to dislodge and refloat it were unprecedented, involving dredging, towing and lightering. The accident marked one of the most severe disruptions at a key chokepoint in the international shipping network. Using ship voyage data, this research introduces a model to quantify the economic losses of a carrier's containership fleet, caused by such a disruption. The studied impacts include ship costs, environmental costs, and inventory-carrying costs. The model is applied to Maersk Line's East-West network, with 69 vessels (0.84m TEUs) affected by the blockage, either by having to reroute via the Cape of Good Hope or by the delays caused during and after the blockage. The results point to an additional 44,574 tonnes of CO<sub>2</sub> produced by the extended trips and extra waiting times of the Maersk ships. The total losses incurred amount to $88.79m, comprising ship costs of $8.04m, environmental costs of $4.46m and, most strikingly of all, inventory-carrying costs of $76.29m, stemming from the high value of goods onboard ($26.5bn). Ship deviations also resulted in revenue losses for the Suez Canal Authority (SCA) of $5.86m, from Maersk crossings alone. Additionally, the research findings shed light on the vulnerabilities of maritime supply chains, particularly concerning prolonged roundtrips, changes to port call patterns, and extended cargo delivery times.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109464"},"PeriodicalIF":9.8,"publicationDate":"2024-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652032","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":"Blockchain adoption in a green supply chain: Considering information asymmetry of consumers’ privacy concern","authors":"Jianhu Cai , Zhengang Cao , Jennifer Shang","doi":"10.1016/j.ijpe.2024.109459","DOIUrl":"10.1016/j.ijpe.2024.109459","url":null,"abstract":"<div><div>In this study, we consider a green supply chain (GSC) with one manufacturer producing green products and one retailer implementing the sales effort, and assume that blockchain adoption increases market demand while causing the consumers' privacy concern (CPC) and that the retailer privately knows the CPC level information. Subsequently, we conduct games in three scenarios: (<em>i</em>) no blockchain adoption (N), (<em>ii</em>) blockchain adoption and information symmetry (BS), and (<em>iii</em>) blockchain adoption and information asymmetry (BA). Then, we obtain the manufacturer's optimal contract schemes and the retailer's optimal sales-effort levels in the three scenarios. Further, we analyze the optimal preferences of GSC members for these three scenarios. The results show that: (<em>i</em>) supply disruption occurs in Scenario BA if the probability of the high CPC level is too low, otherwise, the retailer prefers Scenario BA the most; (<em>ii</em>) the manufacturer's optimal ex-ante expected profit in Scenario BA is always lower than that in Scenario BS; (<em>iii</em>) the manufacturer prefers Scenario BS or Scenario BA over Scenario N under specific conditions; and (<em>vi</em>) blockchain adoption can achieve the Pareto improvement of the GSC under specific conditions.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109459"},"PeriodicalIF":9.8,"publicationDate":"2024-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652525","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}
Reza Alikhani , Amirhossein Ranjbar , S. Ali Torabi , Christopher W. Zobel
{"title":"Performance evaluation of concurrent supply chain resilience strategies","authors":"Reza Alikhani , Amirhossein Ranjbar , S. Ali Torabi , Christopher W. Zobel","doi":"10.1016/j.ijpe.2024.109446","DOIUrl":"10.1016/j.ijpe.2024.109446","url":null,"abstract":"<div><div>Despite the growing research on supply chain resilience (SCR) strategies, a comprehensive performance assessment for implementing multiple strategies simultaneously, considering both positive and negative synergistic effects, is still lacking. Given the complex nature of resilience, it is important for any such assessment to incorporate a multi-dimensional view of resilient behavior. To help address this gap in the literature, we propose an extended slack-based super-efficiency data envelopment analysis for evaluating the performance of SCR strategies when they might be utilized concurrently. The new approach characterizes resilience performance by considering the cost of implementing a set of resilience strategies (resilience cost) as an input to the assessment process, and by considering (1) the resulting cost of the disruption, (2) the impact on the service level, and (3) the associated recovery time as outputs. Taken together, these metrics allow for assessing the combined performance of each candidate set of resilience strategies under their synergistic effects. This new and comprehensive approach for resilience assessment is carefully incorporated into a framework that ranks different subsets of relevant strategies for any given supply chain, according to their relative effectiveness across a variety of different disruption scenarios. The proposed decision framework is able to help decision-makers identify the best ensemble of resilience strategies available. A real-world case study is used to illustrate the significant potential of the framework, and a number of important managerial insights are provided to help decision-makers more effectively analyze and implement their own optimal subsets of SCR strategies, particularly in the presence of network quality or budgetary constraints. Theoretical implications include advancing the understanding of multi-strategy interactions in SCR, while practical implications focus on guiding SC managers in selecting and implementing the most effective resilience strategies under various conditions.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109446"},"PeriodicalIF":9.8,"publicationDate":"2024-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652517","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}
Pervaiz Akhtar , Muthu De Silva , Zaheer Khan , Shlomo Tarba , Joseph Amankwah-Amoah , Geoffrey Wood
{"title":"Digital transformation in public-private collaborations: The success of humanitarian supply chain operations","authors":"Pervaiz Akhtar , Muthu De Silva , Zaheer Khan , Shlomo Tarba , Joseph Amankwah-Amoah , Geoffrey Wood","doi":"10.1016/j.ijpe.2024.109461","DOIUrl":"10.1016/j.ijpe.2024.109461","url":null,"abstract":"<div><div>Recent years have seen the extensive use of big data analytics, related technological infrastructure, and machine learning applications for digital transformation. The resource dependency related to data-driven applications elicits public-private collaborations (PPCs) between governments and private or non-government organizations (NGOs) for value creation. Such collaborations are effective for the success of humanitarian supply chain operations (HSCOs), particularly in the event of large-scale disasters. By building on resource dependence theory (RDT), our study explores the links between digital transformation, PPCs, and HSCO success. Using structural equation modeling on data collected from 224 key decision-makers and experts, we found that digital transformation mediates the relationship between private-NGO collaborations and HSCO success while host government support moderates it. Our study thus makes an original contribution to RDT and the emerging domains of contemporary digital and data-driven applications in HSCO. The implications and future research directions arising from this study are also discussed in this research paper.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109461"},"PeriodicalIF":9.8,"publicationDate":"2024-11-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142652123","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":"Online retailing with key opinion leaders and product returns","authors":"Ting Zhang , Yuan Tian , T.C.E. Cheng","doi":"10.1016/j.ijpe.2024.109458","DOIUrl":"10.1016/j.ijpe.2024.109458","url":null,"abstract":"<div><div>Key opinion leaders (KOLs) play a crucial role in marketing because of their potential fan market and influence. We analytically study whether a seller should cooperate with a key opinion leader (KOL) by considering the KOL's two effects: first, the KOL's existence will increase the number of consumers who are aware of the product; second, a more positive (negative) product review from the KOL will increase (decrease) consumers' prepurchase belief in product valuation. After buying the product, consumers will realize their actual product valuation, based on which they decide to return or keep the product. We find that when the product valuation posted in the KOL's product review is exogenous, a more positive review from the KOL benefits the seller but can harm the KOL. As the consumer's hassle cost of product return increases, both the seller and the KOL can be better off. If the positivity of the KOL's product review is high, the KOL's existence will benefit the seller and harm the consumers. Moreover, if the KOL can strategically make the marketing effort to increase their popularity, their marketing effort will decrease as their product review becomes more positive. If the KOL can strategically choose how they present the product, i.e., when the product valuation posted in the KOL's product review is endogenous, their product review will be less positive than the product review that maximizes the system's profit, i.e., the total profit of the KOL and the seller. The model extension shows that the result is robust.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"279 ","pages":"Article 109458"},"PeriodicalIF":9.8,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142707258","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}