Runliang Dou , Guofang Nan , Yueming Pan , Xin Liu
{"title":"Balancing privacy considerations and customization preferences for consumer: LLMs adoption and coordination strategies in supply chains","authors":"Runliang Dou , Guofang Nan , Yueming Pan , Xin Liu","doi":"10.1016/j.ijpe.2025.109827","DOIUrl":"10.1016/j.ijpe.2025.109827","url":null,"abstract":"<div><div>The manufacturer’s motivation to invest in product customization is reduced by consumer uncertainty regarding customized products and the double marginalization effect in supply chains. The emergence of large language models (LLMs), with their enhanced interaction and inference capabilities, offers opportunities to mitigate consumer uncertainty in customized product sales, but simultaneously raises novel privacy concerns. Consequently, supply chain members encounter operational decision complexities in the context of product customization. This study analytically examined a two-tier supply chain and investigated the adoption of LLMs in customized product sales under consumer uncertainty and privacy concerns. We further explored revenue-sharing and cost-sharing contract mechanisms for supply chain coordination. The results demonstrated that adopting LLMs with price discrimination generally benefited the manufacturer, the retailer, consumer surplus, and social welfare, while adopting LLMs without price discrimination only benefited those when privacy costs were low. The product-customization level was not affected by the adoption of LLMs without or with price discrimination in wholesale contracts. Both revenue-sharing and cost-sharing contracts enhanced manufacturers’ profits and increased product-customization level, while retailers benefited only when the revenue-sharing or cost-sharing ratio was low. Privacy costs hindered Pareto improvements only in the adoption of LLMs with price discrimination under revenue-sharing contracts. Finally, we characterized the conditions under which manufacturers and retailers reach contractual agreements regarding wholesale prices, cost-sharing, and revenue-sharing, and we explored the impact of privacy costs on such agreements.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"292 ","pages":"Article 109827"},"PeriodicalIF":10.0,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145963361","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":"Forecasting and managing price volatility in salmon production: A hybrid system using conformal prediction and dynamic hedging","authors":"Manuel Luna , Olaya Pérez-Mon , João Luiz Becker","doi":"10.1016/j.ijpe.2025.109726","DOIUrl":"10.1016/j.ijpe.2025.109726","url":null,"abstract":"<div><div>Risk awareness has become critical for effective, data-driven decision-making, particularly in current volatile business environments. However, as the technological transformation of production systems evolves, forecasting and quantifying risk remain challenging. Such a challenge is especially relevant in food production systems, particularly in aquaculture, an industry characterized by volatility and underdeveloped risk management, despite its potential as a sustainable alternative to fisheries. To respond to this need, this study proposes a hybrid framework for forecasting and adaptively managing price volatility, tailored to the operational context of the salmon production industry. There are, though, both technical and practical challenges: although machine learning methods have proven effective for time series forecasting in many contexts, they often lack actionable measures of uncertainty, and their application in aquaculture remains limited. Thus, we develop a two-step approach, that first applies a forecasting model enhanced with Conformal Prediction, a model-agnostic technique that generates prediction intervals with valid coverage in finite samples. Secondly, we use those prediction intervals to inform an adaptive hedging strategy based on the Dynamic Portfolio Insurance method applied to the estimated production value. Results show that, when applied to the Atlantic salmon industry using actual spot and futures data, the proposed approach effectively mitigates downside risks while preserving upside potential. This way, we unify predictive modeling and risk mitigation in a framework tailored to the sector's operations. This makes short-term price forecasts actionable and, when embedded within classical aquaculture growth simulations, supports volatility-informed adaptive hedging, contributing to more resilient, risk-aware, and data-driven production strategies.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"291 ","pages":"Article 109726"},"PeriodicalIF":10.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145733281","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":"Identifying critical node set in supply chain network considering hybrid operational risk management","authors":"Bin Hou, Xinyu Wang, Jiafu Tang","doi":"10.1016/j.ijpe.2025.109864","DOIUrl":"10.1016/j.ijpe.2025.109864","url":null,"abstract":"<div><div>Identifying and protecting critical node set (CNS) is an important measure to enhance the resilience of supply chain network (SCN), especially in the face of increasingly frequent and uncertain disruptions. To respond to the urgent and real-world issue, this study proposes a two-stage stochastic programming (TSSP) framework for the problem of identifying CNS, considering hybrid operational risk management strategies. The first stage decides to pre-protect (proactive strategy) certain nodes against uncertain future risks, while the second stage determines which nodes to post-protect (reactive strategy) in response to realized risks, thereby mitigating potential risk propagation. The CNS identification problem is proven NP-hard. However, the second stage problem demonstrates monotonicity, which facilitates more efficient algorithm design. This paper introduces a load capacity model to simulate risk propagation process, and utilizes a neighborhood search and simulation-based hybrid optimization approach to identify the CNS as well as obtaining the optimal protection policy. Numerical experiments conducted on a practical SCN show that: (1) The CNS identified by our model outperforms traditional measures in enhancing supply chain resilience (SCR). (2) The optimal CNS configuration evolves in response to variations in budget constraints, the number of pre- and post-protection nodes. (3) The combined pre- and post-protection strategy demonstrates superior performance compared to individual protection approaches. The findings offer actionable insights for managers to mitigate risk propagation and enhance SCR through targeted protection of CNS.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"291 ","pages":"Article 109864"},"PeriodicalIF":10.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145616099","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}
Changhua Liao , Qihui Lu , Yanglei Li , Victor Shi
{"title":"Platform-led or firm-led? An analysis of artificial intelligence development strategies in agricultural supply chains","authors":"Changhua Liao , Qihui Lu , Yanglei Li , Victor Shi","doi":"10.1016/j.ijpe.2025.109861","DOIUrl":"10.1016/j.ijpe.2025.109861","url":null,"abstract":"<div><div>Agriculture experiences substantial yield losses due to pests and diseases, underscoring a need for advanced solutions such as artificial intelligence (AI). This study examines a contract farming supply chain with an agriculture firm and a platform, focusing on AI’s role in reducing these losses. Using game theory, we explore AI development conditions and compare two AI development modes: one where the agriculture firm develops AI (firm-led), and another where the platform undertakes AI development (platform-led). We also evaluate the effects of yield uncertainty, AI development efficiency, and firm’s planting effort efficiency on these strategies. Our findings reveal several key insights. First, in the firm-led mode, when AI enhances the firm’s planting effort efficiency, the firm always benefits, whereas only low AI development efficiency is beneficial to the platform. When AI reduces effort efficiency, only high development efficiency is advantageous to both parties. Second, in the platform-led mode, when AI improves planting effort efficiency, the outcomes are reversed compared to the firm-led mode. When AI reduces effort efficiency, only a moderate development efficiency is beneficial to the firm. Interestingly, in cases where AI significantly lowers effort efficiency, the platform consistently benefits. Third, the platform always tends to choose the platform-led mode, whereas the firm chooses this mode only when AI development efficiency is low. Additionally, the higher the average yield reduction rate, the greater the role of AI, the more likely the firm is to choose the firm-led mode. These insights contribute to a deeper understanding of AI development strategies in agricultural supply chains.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"291 ","pages":"Article 109861"},"PeriodicalIF":10.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145616100","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":"Firm remanufacturing and product distinction decisions: The implications of servitization implementation","authors":"Junwei Zhao, Huiqin Zhang, Yuxiang Zhang, Deru Xie","doi":"10.1016/j.ijpe.2025.109863","DOIUrl":"10.1016/j.ijpe.2025.109863","url":null,"abstract":"<div><div>In the context of a circular economy, firms face numerous challenges and uncertainties in balancing economic benefits with environmental sustainability through remanufacturing and servitization. To address this, we construct a three-dimensional analytical framework that integrates remanufacturing, product distinction decisions, and the servitization business model. Based on a game-theoretic model, we examine the optimal strategic choices for a firm under both pure sales and servitization (sales and service) models. The findings reveal that, first, the optimal strategy for the firm is driven by the production cost of new products and consumer usage concerns. When production costs are moderate, the firm can maximize profits through price discrimination by clearly distinguishing new products from remanufactured ones. However, the implementation of servitization will narrow the applicability of this strategy. Interestingly, an increase in consumer usage concerns tends to lead the firm to avoid distinguishing between product types. Secondly, servitization remains profitable at low costs, and it does not inhibit the firm's remanufacturing activities. Instead, by blurring product differences, it prompts the firm to adopt mixed sales strategies, fueling this implicit remanufacturing business practice. Finally, achieving environmental benefits requires a precise match between product characteristics and the level of remanufacturing technology improvement. When remanufacturing technology meets the corresponding conditions and production costs fall within a specific range, the coordinated deployment of servitization and remanufacturing can achieve a Pareto improvement in both economic and environmental benefits. The research findings provide new insights into multi-strategy collaborative decision-making in circular economy practices.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"291 ","pages":"Article 109863"},"PeriodicalIF":10.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145616101","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":"Integrating industry 4.0 technologies into green supply chains: An empirical investigation of pathways to green innovation and circular economy","authors":"Fakhar Shahzad , Younes Ben Zaied , Qingyu Zhang","doi":"10.1016/j.ijpe.2025.109859","DOIUrl":"10.1016/j.ijpe.2025.109859","url":null,"abstract":"<div><div>Despite the growing recognition of the transformative potential of Industry 4.0 technologies to advance sustainability goals, the existing evidence often needs to pay more attention to the actual integration of these technologies in supply chain dynamics. This study aims to bridge this gap by integrating a practice-based view and supply chain practice view framework to uncover the complex nexus that forms a sustainable circular economy. The required data was collected through a structured questionnaire (n = 358) from supply chain professionals of Pakistani manufacturing firms. The proposed model was tested using partial least squares structural equation modeling, bootstrapping, and importance–performance map analysis. The findings portray the positive role of Industry 4.0 technologies and green supply chain integration in driving green innovation for sustainable products and processes, and provide concrete examples of their practical application in a sustainable circular economy. The outcomes contributed to the development of sustainable business strategies for Industry 4.0 technologies-based green supply chain integration, providing significant theoretical grounds and a practical roadmap for integrating these technologies into the manufacturing supply chain. Importantly, the study's findings directly impact supply chain professionals and provide practical guidance for manufacturers navigating the changing landscape and achieving sustainable goals.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"291 ","pages":"Article 109859"},"PeriodicalIF":10.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145570929","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":"Optimization of cooperation mode and decision strategy in online game supply chain","authors":"Longmei Tian , Bneyong Hu , Chao Mneg","doi":"10.1016/j.ijpe.2025.109852","DOIUrl":"10.1016/j.ijpe.2025.109852","url":null,"abstract":"<div><div>This study examines sustainability cooperation within online game supply chains. First, we develop three cooperation models, including transactional cooperation, operational cooperation, and strategic cooperation, based on Nash bargaining. These models capture the variations in operators' investment levels and revenue-sharing mechanisms across the supply chain. Through equilibrium analysis, we identify the optimal decision strategies for each model and elucidate their distinct characteristics. Second, our findings reveal that investment behaviors in the online game supply chain differ fundamentally from those in physical product supply chains. Specifically, enterprises in the online game sector exhibit complementary, rather than substitutive, investment behaviors. Furthermore, within the strategic cooperation model, profit distribution is significantly influenced by both the relative bargaining power of the enterprises and the disparities in their comprehensive input-output effects. Finally, strategic cooperation can maximize supply chain performance. However, if enterprises select strategic cooperation, they need to consider the relationship between the gap in their comprehensive input-output effects and bargaining power on the basis of price. Moreover, this study validates its main conclusions as robust.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"291 ","pages":"Article 109852"},"PeriodicalIF":10.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145733283","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}
Bouchra Bacha , Yann Bouchery , M. Zied Babai , Zied Jemai
{"title":"Impact of pricing and replenishment decisions on food waste at stores and households","authors":"Bouchra Bacha , Yann Bouchery , M. Zied Babai , Zied Jemai","doi":"10.1016/j.ijpe.2025.109851","DOIUrl":"10.1016/j.ijpe.2025.109851","url":null,"abstract":"<div><div>A strategy often used by retailers to reduce in-store waste of perishables consists of discounting the less-fresh products. However, this strategy can lead to excessive purchases of less fresh products, which ends up in household waste disposal. The perishable inventory literature often ignores this phenomenon, i.e., the waste at households, by considering only in-store waste. In this article, we investigate the impact of the selling price and ordering decisions on food waste at the store and households for perishable products with fixed lifetime. We consider a periodic order-up-to-level (OUTL) inventory control policy where the demand is modeled using customer choice behavior derived from a utility function that incorporates household waste risk. The probability of products’ waste at households is modeled using the quality deterioration of products and the sensitivity of consumers to expired products and food waste. The selling price and the OUTL are determined with the objective of maximizing the expected profit. Our numerical results show that food-waste dynamics and profitability are jointly affected by consumer behavior and inventory policies, rather than pricing alone. By integrating household waste probabilities into retail decision-making, retailers can anticipate cannibalization, design promotions that minimize system-wide waste, and align sustainability with profitability, yielding coordination insights that retailer-only models cannot capture.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"291 ","pages":"Article 109851"},"PeriodicalIF":10.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145733181","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}
Joyce Danielle de Araújo , Cíntia Wilke Franco , Paulo Renato de Sousa , Alejandro G. Frank
{"title":"Redefining work in the supply chain: combining digital technologies and knowledge sharing for a smart working environment","authors":"Joyce Danielle de Araújo , Cíntia Wilke Franco , Paulo Renato de Sousa , Alejandro G. Frank","doi":"10.1016/j.ijpe.2025.109860","DOIUrl":"10.1016/j.ijpe.2025.109860","url":null,"abstract":"<div><div>Supply chains are undergoing rapid digital transformation, yet little is known about how digital technologies reshape workers' activities and the role of knowledge sharing in this process. A human-centered perspective is essential to align process improvements with worker outcomes. This study investigates how digital technologies support core supply chain management (SCM) activities, how knowledge-sharing practices influence them, and how their interaction affects supply chain performance and worker outcomes. We surveyed 370 companies and applied regression models to examine the relationships between digital technology adoption, knowledge sharing, SCM activities, and performance outcomes. To contextualize the survey findings, we conducted a post-hoc qualitative longitudinal case study of a supply chain digitalization project involving the focal company and six key partners—three suppliers and three customers. Results show that digital technologies enable smart working environments, enhancing SCM processes and outcomes. However, knowledge sharing interacts negatively with digital technologies in supporting workers’ SCM activities: explicit knowledge sharing becomes less critical with front-end smart working technologies, while tacit knowledge sharing is less necessary with extensive use of base digital technologies. Front-end technologies influence worker outcomes indirectly through their effects on SCM activities, whereas base technologies have both direct and mediated effects on worker outcomes and supply chain performance. The qualitative findings reveal the distinct digital capabilities implemented and their impact on workers. These findings challenge the assumption that knowledge sharing always complements digital tools, suggesting that digitalization can reduce reliance on external knowledge and offer managerial insights for designing human-centered smart work environments.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"291 ","pages":"Article 109860"},"PeriodicalIF":10.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145570931","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 deep fusion framework for end-to-end multi-product inventory optimization in e-commerce scenarios","authors":"Shan Chen , Meizhen Zhu , Shuihua Han , Shivam Gupta","doi":"10.1016/j.ijpe.2025.109839","DOIUrl":"10.1016/j.ijpe.2025.109839","url":null,"abstract":"<div><div>Inventory management has become extremely difficult in the e-commerce industry due to the variety of products, the complexity and unpredictability of demand, and the frequency of discounts. According to previous research,it is simple to arrive at the local optimal solution using the traditional two-step method, which first predicts needs and then optimizes inventory. This method ignores the relationship between items and the impact of promotions. To address the challenges of multi-period and multi-product inventory management in the e-commerce scenario, this paper proposes an end-to-end integrated optimization model based on deep learning. This model first uses the Dynamic Programming or Rolling Horizon Control with Integer Linear Programming to determine the ideal order quantity within each ordering cycle by leveraging historical data, which is then used as a training label. Subsequently, a Multi-Product Inventory Optimization Neural Network model (MPIONN) is designed. This model integrates modules such as Long Short-Term Memory networks, attention mechanisms, and Graph Convolutional Networks to model the time dependence of demand, promotional activity information, and multi-product correlations respectively. Finally, the optimal order quantity is output through multi-source information fusion. By introducing an end-to-end differentiable mapping between features learning and inventory optimization, we eliminate error accumulation across sequential stages. This study validates the proposed method using a large-scale e-commerce dataset. The experimental results show that the algorithm proposed in this paper can significantly reduce the total inventory cost, effectively balance the inventory holding cost and the stock-out cost, and outperforms existing integrated optimization methods and two-stage methods in terms of performance.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"291 ","pages":"Article 109839"},"PeriodicalIF":10.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145733196","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}