Thomas Vogt, Ben Lowery, Anna-Lena Sachs, Ulrich W. Thonemann
{"title":"Inventory control and picking behavior: The roles of sustainability messages and price discounts","authors":"Thomas Vogt, Ben Lowery, Anna-Lena Sachs, Ulrich W. Thonemann","doi":"10.1016/j.ejor.2025.09.028","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.09.028","url":null,"abstract":"Customer picking behavior plays an important role in retail inventory management. Inventory models often distinguish between picking the freshest items, i.e., last-in-first-out (LIFO), or oldest items first, i.e., first-in-first-out (FIFO). We analyze how picking behavior affects inventory management, and how sustainability messages and price discounts can change picking behavior to increase sales of earlier expiring items and reduce food waste. By conducting an online experiment, we find that: (1) sustainability messages induce more subjects to buy earlier expiring items; (2) higher price discounts increase sales of earlier expiring items; and (3) some subjects do not change their behavior, or crowd out with price discounts. Understanding how different customer types respond to incentives helps retailers offer them only to customers who most likely respond with buying expiring items. We evaluate the effect of these findings on inventories using a periodic review model for perishable items with age-dependent lifetimes. Assuming Poisson and Negative Binomial demand in our numerical study, we find that the retailer’s costs may be up to 30.25% lower under pure FIFO compared to pure LIFO demand. We estimate the cost savings if a retailer nudges customers to change their picking behavior and analyze different FIFO-LIFO splits, which is more realistic than the retailer assuming pure FIFO or LIFO picking behavior. Furthermore, we show that misspecification of the FIFO-LIFO split has a notable effect on inventory costs, in-stock probability and waste, and that the retailer should rather slightly overestimate FIFO than LIFO if actual picking behavior is unknown.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"11 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145262040","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}
Rossana Cavagnini, Alberto Santini, Michael Schneider
{"title":"Recent developments in location-routing problems: Deterministic single-echelon, single-objective, single-period problems","authors":"Rossana Cavagnini, Alberto Santini, Michael Schneider","doi":"10.1016/j.ejor.2025.09.040","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.09.040","url":null,"abstract":"Location-routing problems (LRPs) simultaneously decide on the locations of facilities and routes originating from these facilities to serve a set of customers. This survey describes recent developments in deterministic, single-objective LRPs with a single echelon and a single planning period. We give detailed summaries of the papers, focusing on the central properties of the described problems and the proposed solution methods. We identify shortcomings in the current literature, provide recommendations to mitigate them, highlight application cases, and list promising topics for further research.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"77 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228754","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":"Enhancing Waste Collection: A Branch-and-Cut-and-Price approach for the Periodic Vehicle Routing Problem with Intermediate Facilities applied to a real-world case study","authors":"Francesco Taverna, Christian Tilk","doi":"10.1016/j.ejor.2025.09.039","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.09.039","url":null,"abstract":"The paper at hand deals with a real-world waste collection problem, which is modeled as a periodic vehicle routing problem with intermediate facilities. Therein, a route plan must be defined for each day of the planning horizon such that all customers are served according to one of their visiting schemes and the total travel time is minimized. We present an enhanced compact formulation and a branch-cut-and-price approach for its resolution, incorporating a new set of valid inequalities that exploit the coprimality of the customers’ visit frequencies. We compare the solution of the new compact formulation via a MIP-solver with the branch-cut-and-price algorithm on asymmetric instances of up to 50 customers, developed with our industry partner to reflect the characteristics of the waste collection sector. While the MIP-solver cannot solve a single instance to optimality, our branch-cut-and-price algorithm solves instances with up to 40 customers considering a four-day planning horizon, and all instances with 20 customers for a six-day planning horizon. To benchmark our algorithm, we test it on instances for multi-period problems from the literature. Our results are competitive with state-of-the-art methods, yielding 5 new proven optimal solutions, 4 new best upper bounds, and 32 new best lower bounds. Moreover, in a case study regarding organic waste collection provided by our business partner, we solved a real-world instance with more than 1000 customer locations. The resulting route plan achieves significant cost savings compared to the company’s current practice.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"136 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145262039","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}
Meng-Nan Li, Xueqing Wang, Ru-Xi Ding, Yu-Huan Wang
{"title":"Primacy effect-based dynamic feedback mechanism considering communication sequence for multilevel infiltrative large-scale group decision-making","authors":"Meng-Nan Li, Xueqing Wang, Ru-Xi Ding, Yu-Huan Wang","doi":"10.1016/j.ejor.2025.08.063","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.08.063","url":null,"abstract":"In decision-making environments with ultra-large-scale decision-makers (DMs) and resource constraints, the extensive interaction among DMs in social network large-scale group decision-making (SN-LSGDM) often leads to inefficiencies and redundant information. To tackle this challenge, this paper explores the multilevel infiltrative large-scale group decision-making (MI-LSGDM) event and proposes a primacy effect-based dynamic feedback (PE-DF) mechanism. This mechanism integrates the communication process into the consensus-reaching process and introduces a communicator identification method that synthesizes DMs’ opinion, behavioral, and relational characteristics. This method effectively channels a significant portion of assessment information from a broader decision-making circle to the inner circle through identified communicators, while promoting the diffusion of consensus from the inner circle to the entire group, thereby mitigating biased decisions. Considering the primacy effect where DMs’ bias toward initial information encountered during communication, this study constructs a communication sequence optimization model, guiding DMs in the inner circle to achieve consensus quickly and accelerating the multilevel infiltration of consensus. An illustrative example and a series of comparative experiments validate the flexibility of the communicator identification method across various decision-making scenarios and demonstrate the ability of the communication sequence optimization model to promote efficient information exchange and consensus-building within limited time and resources. Overall, the proposed PE-DF mechanism solves the practical limitations of traditional SN-LSGDM models constrained by DM scale and resource availability, exhibiting strong performance and robustness across a broader range of decision-making scenarios.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"128 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228756","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}
Thomas B. Cassidey, Nickolas K. Freeman, Sharif H. Melouk, Arunachalam Narayanan
{"title":"Concurrent sourcing behavior and bounded rationality under capacity constraints","authors":"Thomas B. Cassidey, Nickolas K. Freeman, Sharif H. Melouk, Arunachalam Narayanan","doi":"10.1016/j.ejor.2025.09.037","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.09.037","url":null,"abstract":"We study the decision-making behavior of concurrent sourcing firms under risk of all-or-nothing disruptions of an outsourced supplier. We perform a controlled experiment to test the effect of differing production capacity constraints on ordering decisions. Although the ability to concurrently source is covered by a sunk cost and supply disruption is mitigated by <ce:italic>Contingent</ce:italic> planning, we find strong evidence for order amount and diversification bias, both when sole and dual sourcing are theoretically optimal. We show that order amount and diversification bias is predicted by our model for bounded rationality. Firms that consider the decision to make and/or buy components used for finished goods production may use our model to predict the performance of their strategic choices. In particular, our insights illustrate how costly biases can negatively impact mitigation strategies that aim to reduce disruption risk. Our experimental findings empirically demonstrate expected profit losses of up to 35%, relative to the optimal values. Given the demonstrated costs of sourcing volume and diversification errors, this work provides important predictive insights for firms which are considering the use of concurrent sourcing.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"113 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228790","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":"https://doi.org/10.1016/j.ejor.2025.09.031","url":null,"abstract":"Online retail platforms such as <ce:italic>Amazon Marketplace</ce:italic>, <ce:italic>Zalando</ce:italic>, or <ce:italic>Hudson’s Bay</ce:italic> 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 <ce:italic>MArket-driven INter-supplier (MAIN) return policy</ce:italic>, 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 <ce:italic>any</ce:italic> 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%.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"27 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-09-29","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":"A jump–diffusion Stackelberg stochastic differential game in optimal carbon abatement strategies with green subsidy","authors":"Yuhan Li, Xiaoshan Su, Jiandong Wang, Haijun Yang","doi":"10.1016/j.ejor.2025.09.035","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.09.035","url":null,"abstract":"The increasingly severe challenges of global warming necessitate a low-carbon transition that involves quantified estimation of carbon emission reduction policies. Carbon trading with abatement subsidization has proven to be an effective measure for evaluating the social cost of carbon emissions. However, conflicting targets between the government and firms can cause principal–agent issues in reducing carbon dioxide emissions. We propose a novel Itô–Lévy jump–diffusion state equation to depict the dramatic fluctuations of carbon prices, a critical factor in carbon trading. To analyze the complex game behaviors in carbon abatement, we construct a multiple players Stackelberg stochastic differential game model applying stochastic optimal control theory in principal–agent situations. Our model examines the incentive compatibility mechanism while considering the complex behaviors of carbon trading participants with asymmetric information. Optimal feedback control strategies are explicitly presented for the government and firms to achieve their separate targets of maximizing social welfare and production profits. Green subsidization coupled with carbon quotas trading is a viable option for promoting carbon abatement. However, high-carbon firms may attempt to deceive the government by pretending to be low-carbon ones. We illustrate that carbon traders with deceptive intentions lead to negative social welfare and hinder carbon abatement achievements.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"28 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-09-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228792","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":"https://doi.org/10.1016/j.ejor.2025.09.030","url":null,"abstract":"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.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"55 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-09-27","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":"Distributionally robust optimization with generalized total variation ambiguity sets","authors":"Belleh Fontem, Ran Ji","doi":"10.1016/j.ejor.2025.09.024","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.09.024","url":null,"abstract":"This paper introduces a data-driven framework for distributionally robust optimization (DRO), founded on a new class of ambiguity sets termed generalized total variation (GTV) sets. In contrast to traditional DRO approaches, the proposed scheme constructs ambiguity sets whose geometry incorporates sample size, support, confidence level, empirical distribution, and cost function structure. Under this framework, we develop two tractable solution methods (first-order, gradient-based), each offering finite-sample statistical guarantees. The first-order approach employs sequential convex programming to construct a solution, followed by a linear program to determine a high-confidence upper bound (i.e., generalization bound) on the solution’s unknown true risk. The gradient-based approach, applicable when the ambiguity set has a smoothly curved boundary, utilizes gradient information to establish a high-confidence upper bound through a sequence of convex programs, all linear except for the final step. We prove that both methods produce statistically consistent risk estimates. Then, we empirically validate the framework on two applications: a synthetic two-item Newsvendor problem and a real-world portfolio optimization problem using S&P 500 asset returns. Results demonstrate that for finite support problems, GTV ambiguity sets can deliver generalization bounds that are as tight as, or tighter than, those from popular alternatives such as Wasserstein and total variation ambiguity sets. We thus highlight the practical benefits of incorporating several types of information into ambiguity set construction, offering improved robustness-performance tradeoffs for data-driven decision-making under uncertainty.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"14 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-09-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228794","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":"Job sequencing and tool switching problem with non-identical parallel machines: mathematical formulations and modeling improvements","authors":"Khadija Hadj Salem, Arthur Kramer, Alexis Robbes","doi":"10.1016/j.ejor.2025.09.026","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.09.026","url":null,"abstract":"The job sequencing and tool switching problem with non-identical parallel machines (SSP-NPM) is a generalization of the job sequencing and tool switching problem (SSP), which is known to be an <mml:math altimg=\"si1.svg\" display=\"inline\"><mml:mi mathvariant=\"script\">NP</mml:mi></mml:math>-hard optimization problem. SSP-NPM involves scheduling jobs on non-identical parallel machines while determining the associated tool sequences to minimize the makespan. In this paper, we propose an improved version of the existing position-based MILP model introduced in Calmels (2022a). Building on this, we develop a position-based arc flow model. In addition, we introduce a novel MILP formulation based on a job group representation of the problem, as used in Akhundov and Ostrowski (2024) for the SSP, which we extend to derive a job group based arc flow model. Several valid inequalities and symmetry-breaking constraints were considered to improve the proposed approaches. Lower and upper bounds were also developed to improve the proposed approaches. Computational experiments were performed using available literature and randomly generated instances to evaluate the effectiveness of the proposed approaches.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"237 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-09-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228835","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}