{"title":"Choosing between additive and conventional manufacturing of spare parts: On the impact of failure rate uncertainties and the tools to reduce them","authors":"","doi":"10.1016/j.ijpe.2024.109438","DOIUrl":"10.1016/j.ijpe.2024.109438","url":null,"abstract":"<div><div>Recently, there has been great interest in using additive manufacturing (AM) to produce spare parts: allowing to produce spare parts with short lead times and close to the point of use, AM reduces the need for large inventories otherwise required by conventional manufacturing (CM) techniques to deal with intermittent spare parts demand. However, using AM to produce spare parts is limited by two main drawbacks: high production costs and uncertain failure rates arising from AM still being a relatively new production technique. While the former can be counterbalanced by inventory cost reductions, it is unclear how the latter impacts the sourcing option decision (i.e. AM or CM). We aim to fill this gap by studying a periodic review model in which spare parts demands follow a Poisson process. To make our analysis accurate and reliable, we leverage a material science approach to obtain realistic values for the failure rate uncertainties. From the results, it emerges that AM is heavily penalized by failure rate uncertainties much higher than those of CM. Consequently, we then focus on some recent tools developed to reduce AM failure rate uncertainties: porosity assessment and in-situ monitoring. We find that the failure rate uncertainty should be reduced by five and six percentage points to make it worthwhile to invest in porosity assessment and in-situ monitoring, respectively. Finally, we determine under which circumstances each tool is preferred over the other and found that porosity assessment is typically the most competitive uncertainty reduction tool.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142531800","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":"Digital servitization in digital enterprise: Leveraging digital platform capabilities to unlock data value","authors":"","doi":"10.1016/j.ijpe.2024.109434","DOIUrl":"10.1016/j.ijpe.2024.109434","url":null,"abstract":"<div><div>Existing research has not clearly defined digital platform capabilities or explained how they unlock data value, limiting the understanding of digital servitization in digital enterprises. Therefore, our study draws upon the Dynamic Capability Theory and employs an exploratory, in-depth single case study approach to bridge this research gap. We identify three key digital platform capabilities: data integration capability, data analytics capability, and data productization capability. Our results demonstrate that these capabilities function as “reservoirs,” “catalysts,” and “pipelines” in a specific iterative sequence to unlock data value, thereby facilitating the successful implementation of digital servitization in digital enterprises. Furthermore, these capabilities are interconnected, collectively forming a dynamic capability—digital platform capability—that unlocks data value by integrating and reconfiguring data resources. Additionally, we delineate the differences in digital servitization between digital enterprises and traditional manufacturers across three dimensions: motivation, key service design activities, and benefits. Our findings enrich the existing literature on digital platform capabilities and data value while expanding the research scope of digital servitization from the perspective of digital enterprises.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142531796","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":"Managing resources for digital transformation in supply chain integration: The role of hybrid governance structures","authors":"","doi":"10.1016/j.ijpe.2024.109428","DOIUrl":"10.1016/j.ijpe.2024.109428","url":null,"abstract":"<div><div>Digital transformation (DT) plays a crucial role in shaping operations and supply chain management. Through real-time data sharing and automated decision-making systems, DT fosters supply chain integration (SCI), facilitated by key digital technologies like Internet of Things (IoT), cloud computing, big data, and artificial intelligence. Effective DT necessitates managing organizational digital resources encompassing technical domains such as software, hardware, and data science, alongside financial resources and managerial capabilities. Navigating the complexities of DT requires strategic decisions in supply chain governance regarding the management of these digital resources. While in-house development offers control and differentiation, it entails organizational and financial risks. Conversely, outsourcing digital activities reduces risks but increases technological dependence. Hybrid governance (concurrently sourcing in-house and outsourcing activities) presents a reconciliatory approach that can be valuable for DT in SCI. This study investigates the contribution of hybrid governance for DT, focusing on its effects on SCI and delivery performance. Through quantitative analysis of 379 manufacturing companies, our findings reveal that hybrid governance positively influences the digitalization of SCI and contributes to delivery performance through a digitalized SCI. Our research contributes to the theoretical understanding of hybrid governance in DT, offering insights into strategic digital resource management for SCI. It underscores the importance of balancing internal and external resources to optimize supply chain performance in the digital era.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142419935","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":"Truthful multi-unit double auction with transaction costs and sellers’ changing marginal costs","authors":"","doi":"10.1016/j.ijpe.2024.109430","DOIUrl":"10.1016/j.ijpe.2024.109430","url":null,"abstract":"<div><div>It is well-known that lots of sellers offer discounts for large orders because of decreasing marginal costs and large productive capacities. Then some procurement platforms provide ways for small buyers to cooperate with their procurements and get discounts from these sellers. Moreover, these transactions will incur pair-related transaction costs. Generally, buyers values and sellers’ costs are private information. Then a critical problem faced by the platforms is to induce the buyers (sellers) to reveal their values (costs) truthfully and to match the supplies and demands efficiently. To solve this problem, we design a multi-unit double auction mechanism based on the padding method where the buyers bid their values and the sellers submit their marginal costs of different quantities, and the platform selects the winners, allocates the transactions, and sets the transaction prices for both sides. We show that the mechanism is budget-balanced, individually rational, incentive-compatible, and asymptotically efficient. For the special case with zero transaction costs, we further simplify the mechanism and get some new findings. We further conduct numerical studies to compare our mechanism with four commonly used mechanisms to demonstrate its advantages and examine the impacts of some parameters on the performance of our mechanism. Finally, we consider the cases with general marginal cost structure as well as private quantity information, respectively.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142419932","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":"Examining customer pressure and green supply chain management in emerging market: An institutional logics perspective","authors":"","doi":"10.1016/j.ijpe.2024.109431","DOIUrl":"10.1016/j.ijpe.2024.109431","url":null,"abstract":"<div><div>Employing contingency and configuration approach, this study explores the role of institutional logics in the relationship between customers' green expectations and firms' adoption of green supply chain management (GSCM) practices. The results of a survey of 310 supplier companies in China, an important emerging market, provide the empirical evidence for the coexistence of multiple institutional logics that are divergent from and almost incompatible with firms' GSCM practices. The multiple logics impose different and conflicting effects on the adoption of GSCM practices when responding to customers’ expectations. Thus, decisions about the adoption of GSCM practices are complicated and contingent on institutional logics. Despite advances in GSCM and rising customer expectations concerning sustainability and the environment, firms still struggle to engage suppliers. This study illuminates how multiple and competing institutional logics play a role in this area. Our results suggest that firms with predominantly cost logic are less likely to engage with GSCM compared to those with market or regulative logics.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142419934","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":"A sustainable semiconductor supply chain under regulation","authors":"","doi":"10.1016/j.ijpe.2024.109426","DOIUrl":"10.1016/j.ijpe.2024.109426","url":null,"abstract":"<div><div>Modern life would not exist without semiconductors as all electronic components used in computers, telecommunications, health care, transportation, and energy systems are equipped with chips. To examine both backward and forward activities in semiconductor industry, this paper formulates the industry as a closed-loop supply chain. It articulates how old semiconductors are processed and recycled to manufacture new silicon and chips, and examines the impact of a commonly applied subsidy scheme on the performance of semiconductor firms which operate in upstream and downstream layers of the industry. Specifically, the proposed semiconductor supply chain involves (i) a return function sensitive to monetary incentives; (ii) a subsidy legislation rewarding end-users for recycling; (iii) upstream industry where silicon is produced using virgin and scrap materials; (iv) downstream industry in which semiconductor manufacturers (such as TSMC, Samsung, Intel) buy silicon and other materials, hire workers, and then produce and sell chips. We characterize Stackelberg equilibrium silicon and semiconductor prices and outputs and calibrate model parameters using actual data to quantify the effects of subsidy and collection channels on silicon and semiconductor firms’ performance. We find that the subsidy scheme neither distorts firms’ strategies nor causes any inefficiency for the semiconductor industry. It stimulates circular economy activities and provides economic and environmental benefits.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142419931","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":"The impact of big fund on the operational efficiency of semiconductor companies: Corporate social responsibility as a non-economic output","authors":"","doi":"10.1016/j.ijpe.2024.109429","DOIUrl":"10.1016/j.ijpe.2024.109429","url":null,"abstract":"<div><div>This study contributes to research on the total factor operational efficiency of the semiconductor company considering corporate social responsibility (CSR) by proposing a novel integer-valued nonparametric frontier method. This method adopts an endogenous directional distance function, which first selects the benchmark and then endogenously determines the directional vector. Avoiding the issue of non-integer slack adjustment increases the convenience of formulating incentive plans and calculating efficiency. We apply this method to the input–output data of 185 listed Chinese semiconductor companies from 2010 to 2022, considering integer-valued CSR as non-economic output. Global Malmquist productivity index analysis shows that the average total factor operational efficiency of companies that received investment from the National Integrated Circuit Industry Investment Fund (Big Fund) increased by 6.9%. Using the econometric technique, we verify that the total factor operational efficiency of semiconductor companies receiving Big Fund investment increased by 0.084 compared to those without Big Fund investment. Heterogeneity analysis showed that the effect of Big Fund was more significant in improving the total factor operational efficiency of state-owned, new, and non-integrated circuit semiconductor companies, implying the necessity of purposeful investment policies for the Big Fund.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-10-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142419933","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 bright and dark sides of servitization under extended producer responsibility","authors":"","doi":"10.1016/j.ijpe.2024.109416","DOIUrl":"10.1016/j.ijpe.2024.109416","url":null,"abstract":"<div><div>Servitization has gained popularity with its concept of selling the functionality or use of a product rather than the product itself. However, the implications of EPR under servitization scenarios are not straightforward. On the one hand, servitization allows the manufacturer to retain ownership of the product, which mitigates the need for costly buyback procedures when the manufacturer is required to repurchase the end-of-use product under EPR. On the other hand, servitization expands the demand of consumers by allowing those who cannot afford the product to still use it by paying per use, thereby increasing the costs for manufacturers when it comes to recycling the product. To investigate the impact of EPR on servitization, we incorporate three distinct characteristics into the model: (i) pay-per-use pricing, (ii) the retention of product ownership, and (iii) repurchasing the end product due to EPR. The manufacturer strategically chooses among the pure sales model, servitization model, or a hybrid model that includes both options. Our findings indicate that without EPR, the manufacturer consistently prefers a hybrid model, as it provides better segmentation of different consumers. However, with EPR, the manufacturer will choose the pure sales model when the recycling rate is sufficiently high. Moreover, we find stringent EPR regulations with higher recycling rate may have negative environmental consequences. Based on these results, we emphasize the need for policymakers to carefully consider and set recycling rate.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142419930","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":"A deterministic fluid model for production and energy mode control of a single machine","authors":"","doi":"10.1016/j.ijpe.2024.109418","DOIUrl":"10.1016/j.ijpe.2024.109418","url":null,"abstract":"<div><div>Improving machines’ energy efficiency through dynamic energy mode control to meet demand requirements with minimal energy consumption is a promising approach. This study considers a machine operating in working, idle, off, and warmup energy modes with different energy consumption in each mode. A deterministic fluid model is developed to analyze an energy mode control policy that determines when to keep the machine working, off or idle, and switch to other modes based on the inventory/backlog level to minimize the total energy, inventory, and backlog costs. This approach facilitates the derivation of closed-form expressions for the optimal thresholds and the associated costs. This modeling approach allows us to prove that a policy that operates the machine between the working and off modes or the working and idle modes is always better than a hybrid policy that operates the machine in working, off, and idle modes simultaneously. We use the solution of the deterministic fluid model to propose an approximate policy for machines with stochastic production, warmup, and demand processes. We compare the results of the proposed approximation method with the optimal solution of a stochastic system where the production and warmup times are exponential and the demand inter-arrival times have Erlang distribution. The optimal solution for the stochastic system is determined by solving a Markovian Decision Process (MDP). Our numerical experiments show that the proposed approximation method predicts the optimal policy type for the stochastic case with a 89.3% accuracy, and the average error between the optimal cost and the cost obtained with the approximation method is 1.37% for 729 different cases tested. Furthermore, the computational efficiency of the proposed approximation is around 250 times better than the effort to determine the optimal policy using an MDP approach. We propose this approximation method where the control parameters are given in closed form as an easy-to-implement and effective policy to control energy modes to minimize the total energy, inventory, and backlog costs. Furthermore, we present the deterministic fluid modeling approach as a versatile approach to analyze energy mode control problems.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142419917","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":"Efficient optimization of robust project scheduling for industry 4.0: A hybrid approach based on machine learning and meta-heuristic algorithms","authors":"","doi":"10.1016/j.ijpe.2024.109427","DOIUrl":"10.1016/j.ijpe.2024.109427","url":null,"abstract":"<div><div>This research contributes significantly to the domain of Industry 4.0 by offering a nuanced approach to the multi-objective optimization of the resource-constrained project scheduling problem (RCPSP) under uncertainty. Focused on the context of smart product platforming, this study introduces a novel methodology that not only considers traditional factors like time and cost but also incorporates quality and risk aspects, crucial for personalized product fulfillment. In this regard, a comprehensive four-objective mathematical model is proposed to minimize project completion time, total project costs, and project risks while simultaneously enhancing overall project quality. Real-world uncertainty is acknowledged through the incorporation of uncertain parameters for the time, risk, and quality associated with each project activity. To address this uncertainty, a robust optimization method is applied based on Bertsimas and Sim's approach. Moreover, to optimize the proposed model, the Hybrid Red Deer and Genetic Algorithm (HRDGA) is proposed, which is leveraging a machine learning approach for clustering solutions. The numerical results demonstrate that increasing the project budget by 30% leads to an upward trend in total project costs and a reduction in the minimum acceptable quality by 10%–30% results in a decreasing trend in the total project cost. This research emphasizes the adoption of Industry 4.0 enabling technology within the project scheduling platform, particularly highlighting its significance for personalized product fulfillment.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142419736","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}