Junwoo Jeon , Çağatay Iris , Sungchul Hong , Andrew Lyons
{"title":"Box rates unveiled: Predictive analytics for ocean freight rates with system dynamics and text mining under supply chain disruptions","authors":"Junwoo Jeon , Çağatay Iris , Sungchul Hong , Andrew Lyons","doi":"10.1016/j.ijpe.2025.109669","DOIUrl":"10.1016/j.ijpe.2025.109669","url":null,"abstract":"<div><div>Ocean freight rates are key drivers of supply chain costs, global inflation, trade and economic growth, and their volatile nature, particularly manifest during supply chain disruptions, causes significant supply chain and economic turbulence. This study presents a parameterized system dynamics model to predict the Shanghai Containerized Freight Index (SCFI), incorporating both linear and nonlinear interrelationships among transport supply, demand, market sentiment, and freight rates. The model comprises four integrated components: (1) a transport demand estimator based on past container shipping volumes, Gross Domestic Product (GDP), and the Purchasing Managers' Index (PMI); (2) an actual containership capacity model that considers shipping liners’ strategic and tactical capacity decisions such as blank sailings, slow steaming, round voyage duration and idle fleet capacity, along with fleet variables such as ship delivery and scrapping; (3) a novel Market Sentiment Index (MSI) using lexicon-based text mining of news articles, integrated with PMI to quantify market sentiment; and (4) an SCFI prediction model that captures the bidirectional feedback between these components. Results indicate that our system dynamics model outperforms established methods such as XGBoost and ARIMA. Furthermore, we find that freight rates are sensitive to the balance between supply, demand, and market sentiment. Specifically, an oversupply of capacity and declining demand reduce freight rates, whereas capacity constraints caused by supply chain disruptions increase rates. Sensitivity analysis further demonstrates that strategic capacity adjustments, particularly through blank (cancelled) sailings, can effectively increase freight rates. These insights have important implications for strategic, tactical, and operational decision-making within global supply chains.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"286 ","pages":"Article 109669"},"PeriodicalIF":9.8,"publicationDate":"2025-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144070084","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}
Baozhuang Niu , Chengwei Lai , Zebin Zheng , Fanzhuo Zeng , Zhipeng Dai
{"title":"Will supplier's quality improvement discourage competing buyers' joint procurement? Impact of product differentiation and manufacturing cooperation","authors":"Baozhuang Niu , Chengwei Lai , Zebin Zheng , Fanzhuo Zeng , Zhipeng Dai","doi":"10.1016/j.ijpe.2025.109666","DOIUrl":"10.1016/j.ijpe.2025.109666","url":null,"abstract":"<div><div>Consider a brand that competes with its contract manufacturer (CM) where the CM has self-brand business. Their products need the same key components (e.g., Dell and ASUS both use Intel Core processor for their laptops) but eventually have differentiated performances because the competitive CM usually have inferior product design capability. One natural question is whether it is beneficial to pool their component purchase orders for cost saving and if so, whether the component supplier's incentive to improve quality will be discouraged. We build a co-opetitive three-layer supply chain model by formulating the trade-offs among the component supplier's quality investment, the brand and the competitive CM's manufacturing cooperation, and their product competition in the downstream market. We find that when the CM's design capability disadvantage is either limited or significant, leading to intensified or mild product competition, component quality investment will be encouraged, but the joint procurement between the brand and the competitive CM will be discouraged. Recognizing the brand's advantageous demand potential, the supplier will strategically adjust the CM's wholesale price upward, whereas the brand's downward without the joint procurement of the brand and the competitive CM. Our study extends prior research on joint procurement by demonstrating how upstream suppliers can leverage both quality investment and wholesale pricing strategies to avoid potential profit loss from buyer procurement alliances.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"286 ","pages":"Article 109666"},"PeriodicalIF":9.8,"publicationDate":"2025-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144138374","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":"Designing profit-maximizing omnichannel distribution networks for high responsiveness","authors":"Dung Nguyen , Walid Klibi , Imen Ben Mohamed","doi":"10.1016/j.ijpe.2025.109636","DOIUrl":"10.1016/j.ijpe.2025.109636","url":null,"abstract":"<div><div>The network posture of omnichannel retailers, encompassing dedicated urban fulfillment centers (UFCs) and/or selected stores (omnistores) for order fulfillment, directly influences their ability to provide responsive delivery services. In turn, customers’ willingness to purchase online is shaped by the responsiveness level offered, impacting overall sales revenue. To address this business context, we introduce a responsive omnichannel distribution network design problem under a probabilistic, offer-dependent customer channel choice framework. At the strategic level, our approach optimizes the selection of delivery service offers by demand zone while jointly determining the number and location of UFCs and omnistores. We formulate a two-stage stochastic distribution network design model that maximizes expected profit. Demand scenarios are derived from a discrete choice model that captures customer preferences between online and offline channels, contingent on the retailer’s responsiveness level. To account for last-mile delivery complexities, we employ a refined pixelization of urban delivery areas and develop a precise calculation of Order-to-Delivery Time (ODT). Managerial insights from a case study of an omnichannel retailer in France highlight the advantages of deploying UFCs and omnistores, yielding up to an 8% profit increase under high responsiveness. Our results demonstrate the effectiveness of the proposed model in capturing customer willingness to buy online, with network offerings shifting to next-day delivery in up to 60% of demand zones.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"286 ","pages":"Article 109636"},"PeriodicalIF":9.8,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143931943","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}
Marko Kohtamäki , Thomas Brekke , Rimsha Naeem , David Sjödin , Vinit Parida
{"title":"Managerial practices shaping the transformation towards artificial intelligence-enabled product–service systems","authors":"Marko Kohtamäki , Thomas Brekke , Rimsha Naeem , David Sjödin , Vinit Parida","doi":"10.1016/j.ijpe.2025.109658","DOIUrl":"10.1016/j.ijpe.2025.109658","url":null,"abstract":"<div><div>This study explores the management of the emergence of artificial intelligence (AI)-enabled product–service systems (PSS) that facilitate a manufacturer's transition toward autonomous solutions. We use a case study involving a leading manufacturer actively developing autonomous and integrated solutions while incorporating AI into product–service systems (PSS) from 2015 to 2022. The study contributes to the digital servitization literature in two ways. First, the study merges AI into product–service systems through a multi-layered path model, which includes layers such as AI-enabled PSS, AI-related PSS technologies, and AI-related PSS ecosystem partnerships. Second, the study identifies managerial practices of strategizing, evangelizing, and routinizing to create AI-enabled PSS, providing guidance for managers planning to merge AI into their product–service systems. The study outlines a research agenda for future AI-enabled PSS. Additionally, it gives managers a framework to understand how to pursue the transition journey.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"286 ","pages":"Article 109658"},"PeriodicalIF":9.8,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143899473","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}
Ming-Lang Tseng , Chen-Fu Chien , Ming K. Lim , Anthony SF. Chiu
{"title":"Special Issue (SI) Editorial Note: Sustainable semiconductor supply chain under industrial disruption: Risk and resilience concerns","authors":"Ming-Lang Tseng , Chen-Fu Chien , Ming K. Lim , Anthony SF. Chiu","doi":"10.1016/j.ijpe.2025.109656","DOIUrl":"10.1016/j.ijpe.2025.109656","url":null,"abstract":"<div><div>This special issue (SI) addresses the sustainable semiconductor supply chain amid industrial disruption and this editorial note discusses the domain in technological solutions, management models, business performance, supply chain toward sustainability, carbon emissions, digital transformation, and resource recycling. The SI collected the studies from those perspectives and addressed the challenges from the semiconductor supply chain.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"286 ","pages":"Article 109656"},"PeriodicalIF":9.8,"publicationDate":"2025-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143904245","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":"Reselling or agency selling? The implication of non-deceptive counterfeits in the luxury industry","authors":"Zhennan Yuan , Lina Bao","doi":"10.1016/j.ijpe.2025.109649","DOIUrl":"10.1016/j.ijpe.2025.109649","url":null,"abstract":"<div><div>This paper studies selling format choice for authentic product in the presence of non-deceptive counterfeit. Specifically, we consider a platform supply chain where a brand manufacturer and a counterfeiter can sell their products through a common e-platform. Two prevalent selling formats are offered in the market, i.e., reselling and agency selling formats. By developing a game-theoretical model, we explore how the existence of counterfeit would affect the selling format preferences of each party, the equilibrium selling mode and the strategic insights into their different choices. The findings show that the selling format choices would be jointly affected by the commission rate and the imitation level. Interestingly, we find that if the counterfeit is highly imitative to the authentic product, the manufacturer still prefers the agency selling format despite a high commission rate. Moreover, when the commission rate and the imitation level are not very high, the manufacturer/counterfeiter wants to sell through the agency selling format while its competitor chooses the reselling format. However, in equilibrium, we show that both parties would choose the agency selling format, leading to sub-optimal performances or even the prisoner’s dilemma in this scenario. Our insight also implies that the counterfeiter would not necessarily benefit from selling a highly imitated product. The more it imitates, the less profitable it may be in equilibrium.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"286 ","pages":"Article 109649"},"PeriodicalIF":9.8,"publicationDate":"2025-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143912354","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}
Julia Wenzel , Ralf Elbert , Felix Weidinger , Simon Emde
{"title":"The power of Robotic Mobile Fulfilment Systems — A sensitivity analysis","authors":"Julia Wenzel , Ralf Elbert , Felix Weidinger , Simon Emde","doi":"10.1016/j.ijpe.2025.109641","DOIUrl":"10.1016/j.ijpe.2025.109641","url":null,"abstract":"<div><div>The use of mobile robots, particularly the Robotic Mobile Fulfilment System (RMFS), has increased in retail logistics. Especially in e-commerce, which is characterized by high demand fluctuations and diverse product ranges, RMFSs offer advantages. The existing literature suggests that the overall optimization of an RMFS is often challenging due to the system’s complexity and the unknown relationships involved. Therefore, this study extends the previous literature on RMFSs by analysing how the complex interactions between parameters affect the system’s performance. A Design of Experiment framework is used to determine the implicit effects on seven performance indicators. In combination with a sensitivity analysis consisting of various statistical analyses as part of predictive analytics, we confirm previous expectations and statistically demonstrate several heretofore unknown parameter interactions. These consist of two-way interactions of three parameters: The dispersion of stock keeping units (SKUs), average order size, and incoming orders per time interval. Our main contribution lies in identifying key efficiency factors for RMFS’s layouts, particularly highlighting the importance of station arrangement and the significant impact of SKU dispersion on system performance and resource utilization. Furthermore, our comparison of different layouts shows that those with fewer stations can optimize order picker utilization and achieve higher efficiency with fewer resources. Our findings confirm that SKU dispersion is the most influential factor affecting RMFS’s performance. We conclude that RMFS can be effectively applied to various scenarios by following our recommendations on SKU dispersion and layout design.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"286 ","pages":"Article 109641"},"PeriodicalIF":9.8,"publicationDate":"2025-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143908084","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":"Energy-efficient optimization of multi-echelon inventory systems","authors":"Hong-Nguyen Nguyen , Matthieu Godichaud , Lionel Amodeo","doi":"10.1016/j.ijpe.2025.109644","DOIUrl":"10.1016/j.ijpe.2025.109644","url":null,"abstract":"<div><div>Efficient energy management in the cold supply chain is crucial for reducing costs and environmental impact. This study presents an integrated distribution inventory system that focuses on energy considerations throughout the supply chain. The model incorporates energy usage from production, warehousing, and transportation processes into the average total cost of the system, providing a comprehensive analysis of energy cost components. By considering various factors such as production rate, ordering policy, warehouse filling level, and truck types, the model offers insights into the energy efficiency of the system. The model is formulated as a mixed-integer nonlinear programming (MINLP) problem. To solve this problem, a heuristic algorithm is proposed, aiming to optimize the total cost, including energy costs, while providing near-optimal decision variables. A study based on a real-world company serves as a practical illustration of the model’s effectiveness. A comparison between the integrated inventory system and a non-inventory system reveals significant reductions in energy consumption for warehousing (23.85%) and the overall system costs (2.74%). After testing four groups of datasets, the proposed heuristic algorithm outperforms the LINGO solver in terms of cost minimization (for the first two groups) and computational time, validating its efficiency. Sensitivity analyses are performed to assess the impact of key parameters such as energy unit costs, distance, transportation speed, and demand on energy costs and system performance. These analyses provide valuable insights for decision-makers, supporting informed decision-making and the identification of practical strategies for optimizing energy usage.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"285 ","pages":"Article 109644"},"PeriodicalIF":9.8,"publicationDate":"2025-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143882462","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":"Stochastic modeling and analysis of two-phase operations in container terminal with automated lifting vehicles: A novel queuing approach","authors":"Govind Lal Kumawat , Divyansh Tripathi , Vishal Bansal","doi":"10.1016/j.ijpe.2025.109646","DOIUrl":"10.1016/j.ijpe.2025.109646","url":null,"abstract":"<div><div>Container terminals worldwide are embracing automation to improve their efficiency and throughput performance for dynamic business requirements. However, to achieve the desired cost and operational efficiency of an automated container terminal, a thorough analysis of its performance under various design parameters is necessary at the design stage. In this paper, we propose a novel queuing model for the performance analysis of a container terminal that uses automated lifting vehicles for container transport. A special type of <em>two-phase server</em> is used to capture complex two-phase operations of quay cranes, automated lifting vehicles, and stack cranes, which were ignored in previous studies. Since existing methods cannot solve our resulting queuing model, we develop a new network decomposition-based approach to solve it. First, we validate the proposed analytical framework by developing a simulation model and find that it is quite accurate with a less than 5% average absolute percentage error in the average throughput time. Next, we quantify the value of accurately modeling the two-phase operations of resources in a container terminal. In our numerical analysis, we find that ignoring two-phase operations can lead to an overestimation of the average throughput time from 25% to 65%. Thus, our new modeling approach assists terminal designers in accurately estimating the performance measures. Furthermore, we illustrate an application of our model in resource planning and provide important design insights.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"286 ","pages":"Article 109646"},"PeriodicalIF":9.8,"publicationDate":"2025-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143895132","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}
Guang Yang , Lin Tian , Mei Cai , Jie Cao , Zaiwu Gong
{"title":"Vertically probabilistic selling mechanism under asymmetric quality-tier competition: An analytical exploration","authors":"Guang Yang , Lin Tian , Mei Cai , Jie Cao , Zaiwu Gong","doi":"10.1016/j.ijpe.2025.109633","DOIUrl":"10.1016/j.ijpe.2025.109633","url":null,"abstract":"<div><div>Compared with the existing literature that focuses on horizontal features of probabilistic selling (PS), PS in vertical quality markets is receiving significant attention in the travel and marketing industries, both in the United States and China. Focusing on a general framework for a vertically PS mechanism that involves firm asymmetric quality-tier competition and the active role of an intermediary retailer, we consider a duopoly, where the leader firm can endogenously generate differentiated quality PS products via either the direct channel or the indirect channel through an intermediary retailer, while the follower firm sells transparent products by providing exogenously differentiated quality levels. Utilizing Stackelberg game theory, we construct an economic model involving PS under asymmetric competition by quantifying probabilistic products in terms of expected quality and provide firms with profit-maximizing strategies under three scenarios. Second, we theoretically analyze three strategies to identify the advantages of PS, and further conduct a comparison of PS and traditional selling (TS) in terms of revenue pricing, social welfare and consumer surplus. Our results suggest that (i.) PS is not always profitable; only if the expected quality level is low could PS be effective; (ii.) PS could weaken asymmetric quality-tier competition and further mitigate cannibalization effect. In our duopoly model, if there were no probabilistic sales, the equilibrium would eventually converge to a situation where one Firm produces a high-quality product and the other produces a relatively low-quality product. Finally, we extend our model by incorporating attitude to risk and word-of-mouth persuasion. These additions enhance the applicability of our conclusions.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"286 ","pages":"Article 109633"},"PeriodicalIF":9.8,"publicationDate":"2025-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143936269","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}