{"title":"Two-dimensional warranty policy design with the consideration of protection term","authors":"","doi":"10.1016/j.ijpe.2024.109350","DOIUrl":"10.1016/j.ijpe.2024.109350","url":null,"abstract":"<div><p>In practice, car products are sold with 2-dimensional (2D) warranty policies, on which existing literature usually assumes that the products are repaired upon failures throughout the warranty period. However, this is not always the case in real life; for example, car manufacturers may need to replace defective cars during an early period of warranty, when the total time on repairing the failures reaches a specified repair time constraint or the number of repair attempts reaches a specified repair number constraint. Motivated by this, this paper divides a warranty period into two stages: the initial protection term and the subsequent repair stage. During the initial protection term, the manufacturer needs to provide a replacement service when a specified replacement condition is satisfied; while during the subsequent repair stage, the manufacturer should provide repair services upon product failures. Taking the warranty servicing cost into account, a profit model is built. The expected total profit of the product is derived, and the optimal warranty period and product price are designed to maximize the manufacturer’s profit. Finally, numerical experiments on car examples are provided to illustrate the considered warranty policy with protection term.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141839127","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":"Optimizing multi-channel procurement planning under disruption risks","authors":"","doi":"10.1016/j.ijpe.2024.109346","DOIUrl":"10.1016/j.ijpe.2024.109346","url":null,"abstract":"<div><p>Procurement plays a vital role in supply chain management, which directly affects the production, delivery, and reputation of enterprises. This paper investigates the multi-channel procurement planning problem (MCPP-R) considering the impact of disruption risk, uncertain demand and spot-market price. To meet the customer demand, the buyer can make purchases by signing a long-term contract with the primary supplier (PS), which offers certain advantages in price but may be susceptible to disruption risks. Alternatively, the buyer can enter into an option contract to retain the right to purchase from a backup supplier (BS). Additionally, the buyer can also purchase from the spot market with uncertain prices. During the procurement process, the buyer needs to decide the quantity to order from the PS and the quantity to reserve from the BS first, and then decide the quantities to reserve from a BS and the spot market respectively when the customer demand realization and spot-market price emerge. The MCPP-R is to find the optimal procurement portfolio solution with the minimum expected total procurement cost, formulated as a two-stage stochastic programming model. Due to the non-convex and non-continuous nature, the MCPP-R model is solved optimally by transforming equivalently into a shortest-path problem (SPP) with constraints. The solution method does not have specific requirements for the distribution of uncertain demand and spot-market price. We conduct extensive numerical experiments to analyze the impact of risk and uncertainty in demand and spot-market price on the procurement plan. The experimental analysis indicates that BS plays a crucial role in most cases, particularly with high disruption probability or high spot-market price.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141841049","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":"Collaborative strategies in the product-sharing market considering manufacturer's capital entry","authors":"","doi":"10.1016/j.ijpe.2024.109345","DOIUrl":"10.1016/j.ijpe.2024.109345","url":null,"abstract":"<div><p>Digital technology and online platforms have enabled large-scale business-to-consumer (B2C) sharing of normalized products. Recently, B2C sharing platforms have also become very popular. The impact of B2C sharing on traditional manufacturers can be very significant. With increased competition on the business end, many manufacturers (e.g., BYD and Didi; FAW and T3) have accessed the sharing market to provide customized products and technology services in addition to outright sales to platforms. This paper studies a capital-constrained sharing platform and manufacturer's optimal collaborative strategy in the sharing market and the economic implications of their collaboration. We propose a decomposition framework to establish three capital collaborative strategies based on a non-collaborative strategy (N-with-C), which is associated with different levels of the platform's capital and the manufacturer's capital entry. The three collaborative strategies are physical capital collaboration without service capital constraints (P-without-SC), physical capital collaboration with physical and service capital constraints (P-with-SC) and physical and service capital collaboration with physical and service capital constraints (PS-with-SC). We employ a game-theoretic analytical model for our analysis. Our results show that (i) the choice of a certain collaboration strategy depends on the platform's and manufacturer's decisions and how such interaction is affected by decision parameters such as initial capital level, claim proportion, spillover of product launch quantity, utilization efficiency and service efficiency; (ii) with a decrease in the platform's capital level, the N-with-C strategy gradually ceases to be the sharing platform's strategy choice; and (iii) with the manufacturer's service entry, the manufacturer suffers a complete reversal of the optimal strategy choices when choosing between the non-collaborative strategy and collaborative strategies, but P-with-SC is better than non-collaboration under a higher claim proportion and the sharing platform always prefers to collaborate. These results suggest that an increasing asymmetry of capital input and control rights influences the level of collaboration between the sharing platform and manufacturer.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141843552","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 Bi-objective location-routing model for the healthcare waste management in the era of logistics 4.0 under uncertainty","authors":"","doi":"10.1016/j.ijpe.2024.109342","DOIUrl":"10.1016/j.ijpe.2024.109342","url":null,"abstract":"<div><p>The purpose of this study is to apply Industry 4.0-based technologies to improve the management of infectious healthcare waste considering location-routing problem and population risk under uncertainty. To achieve this, a decision support system is developed and implemented utilizing a bi-objective mixed-integer linear programming (MILP) model. The bi-objective MILP model improves the performance of the healthcare waste management by applying Industry 4.0 technologies, including electric autonomous vehicles, information sharing system, internet of things (IoT), Global Navigation Satellite System (GNSS), and RFID-tagged waste bags. We develop a multi-objective solution approach by integrating the lexicographic and TH methods. The validity of the model has been established through its implementation in seven hospitals in the city of Karaj, Iran. The results denoted significant improvements in waste collection efficiency, route optimization, and the reduction of contamination risks.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141840718","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":"Additive manufacturing service bureau selection: A Bayesian network integrated framework","authors":"","doi":"10.1016/j.ijpe.2024.109348","DOIUrl":"10.1016/j.ijpe.2024.109348","url":null,"abstract":"<div><p>Additive manufacturing service bureaus (AMSBs) are crucial for enabling manufacturing organizations to leverage the benefits of additive manufacturing (AM) technology, such as on-demand manufacturing, production speed, etc., all while eliminating the expense of maintaining inventories. Consequently, many organizations favor AMSBs for expertise, cost efficiency, and access to diverse equipment, materials, and post-processing, reducing the necessity for substantial in-house investments. While researchers have explored evolving business models and the types of AM services offered by AMSBs to some extent, there is a noticeable research gap in selecting the most compatible AMSB for specific customer requirements, which this research would like to address. Initially, this research identifies various types of services offered by AMSBs, classifying them into eight groups: generative, evaluative, explorative, facilitative, constructive, decisive, selective, and assistive. Then, a knowledge-based expert system is introduced to select a suitable type of AM service. Further, 101 AMSB selection criteria are identified and grouped into criteria and sub-criteria by incorporating insights from literature and experts. Then, 26 pertinent criteria were shortlisted through Delphi. Neutrosophic best-worst method is then utilized to quantify criteria weights. Finally, a Bayesian network is used to calculate the selection probability of each AMSB, identifying the AMSB with the highest probability as the most compatible. The robustness of this framework is validated through sensitivity analysis. The practical effectiveness of the framework was demonstrated through a case study involving Ferro Oil-Tech India Private Limited. The analysis of the results provided valuable managerial insights and suggested ways to enhance the business competitiveness of the organization.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141839658","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":"Recovering from geopolitical risk: An event study of Huawei's semiconductor supply chain","authors":"","doi":"10.1016/j.ijpe.2024.109347","DOIUrl":"10.1016/j.ijpe.2024.109347","url":null,"abstract":"<div><p>Amidst the ongoing globalisation of supply chains, geopolitical issues have emerged as a significant source of supply chain risk for firms. This has recently been illustrated in the trade sanctions adopted by the US against the Chinese semiconductor industry, particularly in the accessing of semiconductor chips. A notable event here, that we focus on in this paper, involves how the leading telecommunications company Huawei has been impacted by this and most interestingly how they have been able to respond, by being able to successfully launch new chip-based products during the US semiconductor chip technology blockade, despite the sanctions ban. This has been achieved with the support of key supplier, SMIC, who has become a major 7 nm chip supplier for Huawei. Employing the event study research method, this study initially examines the stock market's response to Huawei's new product release with these new SMIC-sourced semiconductor chips. It also appraises the propagation effects on Huawei's and SMIC's supply chain partners. This exposes the differential impact on the supply chain members of Huawei (focal firm) and SMIC (main supplier). The results reveal predominantly positive responses from Huawei's suppliers and customers, as well as SMIC's suppliers and customers, to these incidents, with Huawei's suppliers' and SMIC's suppliers' and customers' share prices responding positively to the release of Huawei's new product, exhibiting substantial median stock market reaction of 1.53%, 1.62%, and 2.52% on Day 0, respectively, it shows, in contrast, that Huawei's customers did not exhibit a positive share price reaction to the development of this newly sourced product. It is noteworthy that SMIC's supply of chips to Huawei has had a significantly positive impact on both Huawei and SMIC's suppliers and customers. With the impact varying across different roles within the supply chains, this study provides useful insights for understanding the propagation effect of good news in the supply chain resulting from firms' proactive action in response to imposed sanctions for a key supply component.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0925527324002044/pdfft?md5=9554e0fccc077b2d16042cd60dd5a212&pid=1-s2.0-S0925527324002044-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141843930","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":"A matter of fit? Service configurations for customer loyalty","authors":"","doi":"10.1016/j.ijpe.2024.109340","DOIUrl":"10.1016/j.ijpe.2024.109340","url":null,"abstract":"<div><p>Improving customer loyalty is paramount for service companies. Nevertheless, the task is riddled with challenges, as evidenced by existing studies that have unveiled dilemmas and presented mixed findings. Our study takes the configurational approach and argues that developing customer loyalty is a matter of fit among relevant design choices in the service context. Specifically, we investigate how the service configurations among service rules formalization (SRF), service employee commitment (SEC), service contact time (SCT), and cost leadership strategy (CLS) yield customer loyalty intention (CLI) in a service context characterized by certain customer contacts. We conduct a multi-respondent survey covering managers, employees, and customers to collect data from 141 service shops in Hong Kong. To analyze the collected data, we employ fuzzy-set qualitative comparative analysis (fsQCA). The results show that the combinations of low SRF, high SEC, and high SCT and of high SEC and low SCT under CLS lead to high CLI. This research offers valuable insights into the configurational design for customer-contact services and the practical means of promoting customer loyalty in customer-contact service firms.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141960040","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":"Optimised break scheduling vs. rest breaks in collective agreements under fatigue and non preemption","authors":"","doi":"10.1016/j.ijpe.2024.109343","DOIUrl":"10.1016/j.ijpe.2024.109343","url":null,"abstract":"<div><p>Collective agreements provide all workers with identical break schedules, irrespective of their individual differences in susceptibility to fatigue and recovery speed. In addition, companies tend to limit breaks which is also detrimental to productivity. We consider workers performing a repetitive task, each endowed with an individual fatigue and recovery function. Fatigue slows down the unit processing time which can be restored by appropriate breaks, therefore allowing for the daily production amount to be optimised. The optimised production of each worker can actually be reached for a multitude of break schedules. We therefore develop an algorithm that lists all possible break schedules (enumeration), and selects those leading to the maximum daily output, and the maximum welfare. Welfare is defined by the break duration and their timing flexibility, since we allow breaks to be also taken at the beginning or end of the workday, enabling workers to spend less time in the workplace. Having a variety of schedules would help in meeting at best the workers’ preferences and facilitate a consensus on a specific schedule between managers and workers. The resulting optimised break schedules are compared with common break practices in collective agreements so as to assess their impact on productivity and on worker’s welfare. None of the break scheduling models in the literature considers the option of leaving the workplace earlier, which is nevertheless highly appreciated by workers, nor do these models provide a variety of optimised break schedules to best accommodate workers’ preferences.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141774561","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":"Taking advantage of the fire: Does firm performance feedback have a supply chain contagion effect?","authors":"","doi":"10.1016/j.ijpe.2024.109341","DOIUrl":"10.1016/j.ijpe.2024.109341","url":null,"abstract":"<div><p>The increased interconnection among supply chain participants brought about by globalization has made supply chain management more crucial than ever for gaining a competitive advantage. We examine how supply chain participants respond to feedback on firm performance, with a focus on the effect of contagion on bargaining power. When a company's performance is below expectations, suppliers and customers tend to increase their bargaining power and potentially take actions to safeguard their interests. This is attributed to the decline in the focal company's product market power, resulting from negative performance feedback. Contrarily, positive performance feedback does not cause significant changes in the bargaining power of supply chain firms. Moreover, we explore the role of other stakeholders, such as creditors and investors, in influencing supply chain negotiations. The distrust of other stakeholders leads to the further improvement of the bargaining power of supply chain companies. We analyze the motivation of supply chain stakeholders to improve their bargaining power under performance feedback and develop a complete causal chain and solution on how to enhance future performance prediction to lessen the increase in bargaining power of the supply chain. This paper is both a valuable contribution to the body of knowledge on the financial impacts of business stakeholder decision-making and a cautionary tale for companies that urgently need to cluster their supply chain activities.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141774562","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":"Understanding no fault found event risk in military aircraft MRO planning: A step towards robust bidding and contract finalization","authors":"","doi":"10.1016/j.ijpe.2024.109344","DOIUrl":"10.1016/j.ijpe.2024.109344","url":null,"abstract":"<div><p>No fault found (NFF) is a reported fault for which the root cause cannot be found. An NFF event not only reduces the availability of the equipment to customers but also results in financial losses to the manufacturer. To date, risk due to NFF events is not considered separately in aircraft Maintenance, Repair, and Overhaul (MRO) planning. In this paper, we have studied the NFF event risk identification, distribution, and optimization in an aircraft MRO process based on data collected over three decades of aircraft maintenance. For framework development and formulating the critical NFF risk drivers, this paper applies soft system methodology with detailed semi-structured interviews of industry experts. For NFF risk distribution and optimization, we have used agent-based simulation modeling. The quantitative assessment of more than 5000 NFF cases in an aircraft MRO organization shows that NFF events are significantly non-deterministic during the life cycle of an aircraft. The three identified critical NFF risk drivers in the research are the MRO process stage, aircraft life cycle stage, and human working skills. The MRO process stage is the time of the NFF event during repair activity. The life cycle stage represents the timeline of the NFF event in useful aircraft life. Human working skill represents the role of manpower in the NFF event solution. Further theoretical elaborations of the research lead to the optimized NFF risk break-up at the contract preparation stage and risk driver's sensitivity analysis by the aircraft assembler, operator, and sub-contractor at the commercial bid submission stage.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":null,"pages":null},"PeriodicalIF":9.8,"publicationDate":"2024-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141715379","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}