Yanfei Lan , Jingxia Qin , Changhe Lai , Guoqing Yang
{"title":"Strategic analysis of drugs market pathway: Regular-approval or accelerated-approval","authors":"Yanfei Lan , Jingxia Qin , Changhe Lai , Guoqing Yang","doi":"10.1016/j.ejor.2025.09.011","DOIUrl":"10.1016/j.ejor.2025.09.011","url":null,"abstract":"<div><div>The traditional regulatory-approval pathway (RP) for the release of new drugs requires completion of all clinical trials prior to market entry and delays patient access to innovative therapies. To expedite drug availability, regulators have introduced the accelerated-approval pathway (AP), permitting earlier market entry based on surrogate endpoints, contingent on the subsequent postmarket study to confirm drug effectiveness. When choosing pathways, firms face a tangled trade-off: RP offers a shorter sales period with no risk of withdrawal, while AP provides the potential for a longer sales period but comes with the risk of non-approval. In this study, we develop a game-theory model to investigate how competing firms choose their approval pathways. Contrary to the conventional wisdom that a more intense competition would incentivize the firm that chooses AP to invest more in postmarket study to enter the more profitable RP-market sooner, we show that the firm actually invests less due to the diminished revenue rates of the RP-market compared to the AP-market and the higher clinical burdens. We find that a more intense competition makes firm more likely choose RP and the other chooses AP. Furthermore, firms’ equilibrium approval pathway choices lead to a triple-win situation for firms and patients when the success probability is relatively low or high, whereas they harm patient surplus and social welfare when the success probability is moderate. This highlights the need for regulatory intervention to coordinate the pharmaceutical market and balance economic and public health objectives.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"331 1","pages":"Pages 108-120"},"PeriodicalIF":6.0,"publicationDate":"2026-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228755","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Christian Fieberg , Carlos Osorio , Thorsten Poddig , Armin Varmaz
{"title":"Enhancing index-tracking performance: Leveraging characteristic-based factor models for reduced estimation errors","authors":"Christian Fieberg , Carlos Osorio , Thorsten Poddig , Armin Varmaz","doi":"10.1016/j.ejor.2025.08.043","DOIUrl":"10.1016/j.ejor.2025.08.043","url":null,"abstract":"<div><div>This paper addresses the challenge of minimizing tracking error in passive portfolio management by reducing estimation errors commonly encountered in traditional optimization methods. We introduce an innovative cardinality-constrained mixed-integer optimization framework that incorporates characteristic-based factor models to enhance index-tracking performance. By leveraging these models, our approach aims to minimize errors stemming from estimation uncertainty. In an empirical analysis, we benchmark the tracking errors of our approach against traditional methods, examining both linear and quadratic programs. We further evaluate robustness across various stock market indices, time periods, solvers, and transaction costs. The results indicate that our method consistently reduces estimation errors, achieving superior tracking performance relative to conventional techniques. These findings provide crucial guidance for efficiently optimizing index-tracking portfolios while accommodating practical constraints.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"331 1","pages":"Pages 278-291"},"PeriodicalIF":6.0,"publicationDate":"2026-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228798","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Prelim p. 2; First issue - Editorial Board","authors":"","doi":"10.1016/S0377-2217(26)00126-8","DOIUrl":"10.1016/S0377-2217(26)00126-8","url":null,"abstract":"","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"331 1","pages":"Page ii"},"PeriodicalIF":6.0,"publicationDate":"2026-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146147698","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Johannes Gückel , Teodor Gabriel Crainic , Pirmin Fontaine
{"title":"A two-step large neighborhood search for a collaborative two-tier city logistics system","authors":"Johannes Gückel , Teodor Gabriel Crainic , Pirmin Fontaine","doi":"10.1016/j.ejor.2025.08.016","DOIUrl":"10.1016/j.ejor.2025.08.016","url":null,"abstract":"<div><div>The rapid transport of freight is an essential feature of modern societies and an enabling factor for economic trade and growth. Nevertheless, the negative impact of freight transportation in urban areas poses challenges for Logistics Service Providers (LSPs) as well as for municipalities. In this context, a centrally coordinated Two-Tier City Logistics System (2T-CLS), in which LSPs voluntarily agree to collaborate with each other, has the potential to reduce both economic and environmental impact costs. In order to plan such a system, it is important not only to make efficient use of the resources provided but also to have a mechanism that allocates the costs incurred to the individual LSPs. We introduce a mixed-integer linear program (MILP) formulation for the tactical planning of a 2T-CLS involving multiple LSPs that share their resources and customer demands. This MILP comprises a service network design formulation on the first tier and a vehicle routing problem formulation on the second tier, which are connected with each other. To address larger instances, we introduce an Integrative Two-Step Large Neighborhood Search with adaptive components that integrates first and second-tier decisions. In order not only to minimize the costs incurred but also to distribute them fairly, we investigate different problem-specific proportional methods, as well as more advanced game theoretical methods. Numerical experiments show that collaboration leads to average cost savings of 26.91%, which primarily stems from first-tier collaboration.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"331 1","pages":"Pages 139-155"},"PeriodicalIF":6.0,"publicationDate":"2026-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145262037","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Sergey Polyakovskiy , Milad Dehghan , Adam Mcgregor , Peter J. Stuckey
{"title":"Mixed-Integer and Constraint Programming Models for the Two-Dimensional Guillotine Cutting Problem","authors":"Sergey Polyakovskiy , Milad Dehghan , Adam Mcgregor , Peter J. Stuckey","doi":"10.1016/j.ejor.2025.10.022","DOIUrl":"10.1016/j.ejor.2025.10.022","url":null,"abstract":"<div><div>The two-dimensional orthogonal guillotine cutting problem considers a single rectangular plate of raw material and a collection of rectangular items to be cut from the plate. Each item is associated with a profit and a demand. The problem searches for a feasible layout of a subset of items on the plate so as to maximize the total profit of selected items. The guillotine constraint restricts feasible layouts to those that can be obtained via guillotine edge-to-edge cuts that run parallel to an edge of the plate. First, we propose a constraint programming (CP) model that is suitable for guillotine cutting with an arbitrary number of stages of alternating horizontal and vertical guillotine cuts. This is an assignment-based model that builds a tree of guillotine cuts using a constant number of rectangular regions, with some regions allocated to items. It treats the entire plate as a primary region and decides on the guillotine cuts required to split the regions recursively until they produce space for the items. The number of regions never exceeds the number of items. To improve the search, the model explores the strength of cumulative scheduling relaxations of the cutting problem. We then translate the CP model into a mixed-integer linear programming (MILP) model. Although it lacks the cumulative scheduling relaxations, its performance is enhanced via a set of valid inequalities. Both our models are polynomial in size. They demonstrate strong computational performance that makes them highly competitive in comparison to the state-of-the-art MILP models, even in application to large-sized instances. Overall, our CP model appears to be stronger than its MILP translation as it solves more instances to optimality and provides a smaller average runtime.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"331 1","pages":"Pages 48-61"},"PeriodicalIF":6.0,"publicationDate":"2026-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145485614","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The stochastic location-routing problem with parallel truck–drone operations for humanitarian aid delivery","authors":"Hannan Tureci-Isik , Melih Çelik , Ece Sanci","doi":"10.1016/j.ejor.2025.08.057","DOIUrl":"10.1016/j.ejor.2025.08.057","url":null,"abstract":"<div><div>Timely response in the aftermath of a disaster is crucial to alleviate loss of life and suffering. Timeliness of relief may be hampered by road network disruptions caused by the disaster, such as damage to road segments or debris covering the roads. The use of drones simultaneously with trucks can potentially help overcome issues around network disruptions and achieve more timely delivery of post-disaster aid. In an effort to shed more light into this potential, we address the problem of network design for parallel truck–drone operations by depot location prior to the disaster and routing of the vehicles in its aftermath. We incorporate the uncertainty on network disruption by modelling this problem as a two-stage stochastic program, which proves computationally challenging to solve to optimality for real-life disaster scenarios. Consequently, we propose a tailored heuristic based on variable neighbourhood search to find high-quality solutions efficiently. Our computational results on randomly generated instances and a case study from the 2011 Van Earthquake in Turkiye demonstrate the effectiveness of the heuristic, the benefits of employing both trucks and drones, and the significance of accounting for uncertainties in pre-disaster planning.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"331 1","pages":"Pages 242-259"},"PeriodicalIF":6.0,"publicationDate":"2026-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145009217","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Christina Johanna Liepold , Pedro Amorim , Maximilian Schiffer
{"title":"Mitigating retail platform externalities via inter-supplier returns","authors":"Christina Johanna Liepold , Pedro Amorim , Maximilian Schiffer","doi":"10.1016/j.ejor.2025.09.031","DOIUrl":"10.1016/j.ejor.2025.09.031","url":null,"abstract":"<div><div>Online retail platforms such as <em>Amazon Marketplace</em>, <em>Zalando</em>, or <em>Hudson’s Bay</em> are increasingly successful as they decrease transaction costs for both suppliers and customers. Online retail platforms act as intermediaries connecting suppliers and customers while usually carrying no stock. As their success depends on a sufficient customer and supplier count, platforms establish customer-friendly, benevolent return policies to attract customers and, in turn, increase their attractiveness towards suppliers. Thus, the likelihood of long-distance shipments and returns increases, which can result in severe economic and environmental costs. Mitigating the negative externalities of return shipments is a major challenge for internationally active platforms. We suggest utilizing the platform’s knowledge of global customer demand and its ability to foster information sharing among participating suppliers to allow for reduced return shipment distances and increased platform efficiency. We propose, implement, and evaluate a novel <em>MArket-driven INter-supplier (MAIN) return policy</em>, which mitigates financial and environmental externalities of returns in online retail platforms. Contrary to classical return shipments, the MAIN return policy allows the return of the product to <em>any</em> supplier conditional to maximizing the resale likelihood while minimizing the return shipment distance. We design an auction-based implementation where suppliers bid on customer-issued returns to increase their welfare while reducing negative return externalities. Implementing MAIN can mitigate the drawbacks of benevolent return policies for online retail platforms. Using a data set on retail platform transactions, we show that the resale value of returns increases on average by 2.5%; shipping distance and related emissions decrease by up to 94%.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"331 1","pages":"Pages 92-107"},"PeriodicalIF":6.0,"publicationDate":"2026-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228791","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Private brand encroachment and channel structure in a hybrid platform","authors":"Chong Zhang, Yi Zhu, Yu Zhang, Yuliang Ma","doi":"10.1016/j.ejor.2025.09.030","DOIUrl":"10.1016/j.ejor.2025.09.030","url":null,"abstract":"<div><div>Nowadays, major online platforms offer the hybrid channel for manufacturers. Therefore, the manufacturer has the option to select from three channel structures: reselling channel, agency selling channel, and hybrid channel. To break through the limitations of simply providing platform services and retail channels, many online platforms introduce private brands to compete with manufacturers. In this research, we construct a game-theoretic model to examine the interplay between the manufacturer’s channel structure and the online platform’s private brand encroachment strategy. Through comparative and equilibrium analyses, some interesting results are found. First, when the commission fee is relatively low, PBE has the potential to inhibit the escalation of the wholesale price and alleviate the double marginalization effect. Second, without private brand, the hybrid channel is not a good option for the manufacturer. However, the private brand encroachment strategy of the online platform substantially increases the manufacturer’s motivation to choose the hybrid channel. The private brand encroachment strategy and the channel strategy have asymmetric mixed relationship of complementarity and substitutability. Third, when the commission fee is low, PB with far less market potential or quality than specialized manufacturers still have value to introduce. Finally, several extended analyses are conducted to verify the robustness of the results and more interesting implications are derived.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"331 1","pages":"Pages 77-91"},"PeriodicalIF":6.0,"publicationDate":"2026-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228793","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Centroid cross-efficiency approach for clustering","authors":"Qingxian An , Jing Zhao , Ya Chen , Haoxun Chen","doi":"10.1016/j.ejor.2025.09.038","DOIUrl":"10.1016/j.ejor.2025.09.038","url":null,"abstract":"<div><div>Recognizing the critical importance of explainable clustering results for decision-making and the influence of sample importance on the clustering result, this study proposes a clustering method based on the centroid data envelopment analysis (DEA) cross-efficiency approach. Specifically, this study first introduces the centroid DEA cross-efficiency approach. The approach is constructed based on the unique set of centroid weights of the convex polytope formed by all optimal weight vectors for each DMU. Then, a gravity model is constructed based on the centroid DEA cross-efficiency approach. The gravity model simultaneously accounts for the sample importance and the distance between samples. Based on the gravity between samples, this study develops the gravity clustering method. This clustering method enhances interpretability and provides decision support by identifying the importance degree of the features for samples across different clusters through centroid weights. To validate the effectiveness, an empirical example is conducted, and the result shows that the proposed clustering method outperforms existing DEA-based clustering approaches. Furthermore, a clustering study is conducted on the healthcare levels of various provinces in China, and policy recommendations are provided for the medical development of provinces within different clusters.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"331 1","pages":"Pages 200-213"},"PeriodicalIF":6.0,"publicationDate":"2026-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228796","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Order advancement in a multi-item two-echelon system: Theory and case study","authors":"Q. ten Hagen , M.C. van der Heijden , D.R.J. Prak","doi":"10.1016/j.ejor.2025.09.033","DOIUrl":"10.1016/j.ejor.2025.09.033","url":null,"abstract":"<div><div>Motivated by a case at a large retail chain in the Netherlands, we study short-term order advancement in a multi-item, two-echelon system consisting of a distribution centre (DC) and many stores. Application of traditional inventory replenishment rules may lead to a strongly fluctuating workload for order picking, and thus capacity problems, at the DC. By advancing replenishments we can balance the workload at the DC without negative impact on the service levels towards the final customer, trading off backroom usage and handling of incoming orders under limited shelf space at the individual stores. We develop a performance evaluation method and various heuristics to find good order advancement solutions. We select the heuristic with the best trade-off between cost performance and computation time for large problem instances (i.e., hundreds of stores and thousands of stock keeping units). Application of this heuristic to case data from the retail chain shows around 10 % overall cost reduction. In particular, the capacity shortage at the DC – a major issue in our case study – is reduced by almost 67 % at the expense of more peaks in handling workload at the stores (42 % increase in order lines exceeding store capacity), and an increase of 7.6 % in backroom usage. Sensitivity analysis shows that a planning horizon of about two weeks performs best, and that the cost reduction potential is heavily influenced by the available shelf space.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"331 1","pages":"Pages 121-138"},"PeriodicalIF":6.0,"publicationDate":"2026-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228833","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}