{"title":"Bilevel optimization with sustainability perspective: A survey on applications","authors":"Giulia Caselli, Manuel Iori, Ivana Ljubić","doi":"10.1016/j.ejor.2025.08.051","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.08.051","url":null,"abstract":"Bilevel optimization, a well-established field for modeling hierarchical decision-making problems, has recently intersected with sustainability studies and practices, resulting in a series of works focusing on bilevel optimization problems involving multiple decision makers with diverse economic, environmental, and social objectives. This survey offers a comprehensive overview of sustainable bilevel optimization applications. First, we introduce the main concepts related to the nature of bilevel optimization problems and present some typical mathematical formulations for bilevel pricing problems that cover many of the collected applications. Then, we review the most relevant works published in sustainable bilevel optimization, giving a classification based on the application domains and their association with well-known operations research problems, while briefly discussing the proposed solution methodologies. We survey applications on transportation and logistics, production planning and manufacturing, water, waste, and agriculture management, supply chains, and disaster prevention and response. Finally, we outline a list of open questions and opportunities for future research in this domain.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"24 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-09-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145059657","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":"https://doi.org/10.1016/j.ejor.2025.08.057","url":null,"abstract":"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.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"68 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-09-02","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}
{"title":"Optimizing university restructuring for targeted knowledge output: A preliminary evaluation of Chinese university mergers incorporating preferences","authors":"Jiajia Zhao, Michael Vardanyan, Zhiyang Shen","doi":"10.1016/j.ejor.2025.08.062","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.08.062","url":null,"abstract":"Chinese universities have experienced a significant wave of mergers since the late 1990s, raising questions about the impact of such consolidation on the knowledge output efficiency and economies of scale and scope in higher education. In this study, we propose a nonparametric model that takes into account specific output preferences during a preliminary evaluation of merger proposals. Additionally, our model addresses the challenges related to the existence of infeasible solutions that have been highlighted in related literature. Empirical analysis using a sample of Chinese research universities suggests that the current number of universities is below optimal in most provinces regardless of the type of knowledge outcome used to assess university performance. This suggests that further university mergers are unnecessary in these regions. However, multiple beneficial merger scenarios still exist in the provinces of Guizhou and Gansu. In Guizhou, some merger plans could lead to efficiency gains when scholarly publications are used as the knowledge outcome, while in Gansu, several consolidation scenarios show potential gains when research projects serve as outputs. Moreover, we found evidence of widespread diseconomies of scale across most merger scenarios along with relatively modest economies of scope within these two provinces.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"131 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145009220","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":"Strategic inventory of original products amid new product launches","authors":"Chenglin Ma, Hubert Pun, Ruiqing Zhao","doi":"10.1016/j.ejor.2025.08.052","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.08.052","url":null,"abstract":"Some suppliers adopt a single rollover strategy to periodically introduce new or updated products while phasing out the original versions; however, their retailers may strategically carry the discontinued old products after the launch of the new product. This paper demonstrates the interaction between <ce:italic>product innovation</ce:italic> and <ce:italic>strategic inventory</ce:italic> in a bilateral monopoly framework. We model a supplier that sequentially sells two product versions (original and updated) to a retailer in two periods. The supplier determines the innovation level of updated products, and the retailer may carry original products which are exclusively supplied in period 1 to period 2. We find that increased inventory holding costs, which reduce the retailer's incentive to stock the original product, may negatively impact innovation for the updated product but benefit the supply chain members. In addition, due to the supplier’s ability to innovate, the retailer's strategic inventory leads to an uncommon lose-lose situation for both the supplier and the retailer when the inventory holding cost is high, a result which deviates from the strategic inventory literature. Our research suggests that policymakers should use appropriate inventory taxes and subsidies to maintain moderate inventory holding costs in order to foster innovation. Moreover, suppliers should strategically manage retailer inventory costs through customized storage and subsidy contracts to maximize profitability. Lastly, to avoid the lose-lose scenario caused by strategic inventory, supply chain members should consider arranging prior commitments to not hold inventory or employ the use of Vendor Managed Inventory (VMI).","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"28 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145009224","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":"Import duty payment options for the parallel import channel: Duty-inclusive strategy versus duty-recovery strategy","authors":"Li Hu, Qin Zhou, Li Wang, Xiangyu Zhou","doi":"10.1016/j.ejor.2025.08.017","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.08.017","url":null,"abstract":"Many multinational manufacturers are expanding cross-border markets via authorized resale and parallel import channels. Unlike purchases made through authorized resale channels, consumers opting for parallel import channels encounter lower prices but face import duty issues and extended waiting times. Two primary payment strategies are typically adopted in parallel import channels to address import duties: one charges consumers the retail price along with import duties upfront (known as the duty-inclusive strategy), while the other charges only the retail price, with import duties pursued by Customs if the products are inspected (defined as the duty-recovery strategy). Despite its practical significance, this issue remains underexplored in the literature. This study develops a game-theoretic model to investigate the impact of duty payment strategies on dual-channel competition. Our analysis yields three main findings. First, a parallel importer will adopt the duty-recovery strategy when the additional waiting time due to back duties is limited. This strategy can ease price competition between the two channels, resulting in a joint increase in retail prices. Second, when the additional waiting time is moderate, the duty-inclusive strategy can benefit the parallel importer, authorized retailer, and manufacturer simultaneously. Third, the duty-recovery strategy enables consumers to potentially evade import duties, which results in a loss of government tariff revenue and, in most cases, a reduction in overall consumer surplus. To address this issue, this paper proposes a punitive tariff mechanism designed to induce parallel importers to abandon the duty-recovery strategy.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"130 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-08-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145009222","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 primal–dual policy iteration algorithm for constrained Markov decision processes","authors":"Zeyu Liu, Xueping Li, Anahita Khojandi","doi":"10.1016/j.ejor.2025.08.038","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.08.038","url":null,"abstract":"The solution algorithms of Constrained Markov Decision Process (CMDP), a widely adopted model for sequential decision-making, have been intensively studied in the literature. Despite increasing effort, the Linear Programming (LP) formulation of CMDP remains the dominant exact method that leads to the optimal solution without constraint violations. However, the LP formulation is computationally inefficient due to the curse of dimensionality in CMDP state and action spaces. In this study, we introduce a novel policy iteration method for CMDP, based on decomposition and row-generation techniques. We design a Primal–Dual Policy Iteration (PDPI) algorithm that utilizes state values and Lagrangian multipliers to improve randomized stationary policies in an iterative fashion. We analytically show that upon convergence, PDPI produces the optimal solution for CMDP. An upper bound of the convergence iterations is also given. To validate the algorithm performance, we conduct comprehensive computational experiments on six benchmarking problems curated from the literature. Results show that PDPI outperforms conventional methods considerably, improving the total algorithm runtime by up to 89.19%. The improvement becomes more significant as the problem size grows larger. We further provide insights and discuss the impact of the developed method.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"12 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144923968","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":"Problem of locating and allocating charging equipment for battery electric buses under stochastic charging demand","authors":"Sadjad Bazarnovi, Taner Cokyasar, Omer Verbas, Abolfazl (Kouros) Mohammadian","doi":"10.1016/j.ejor.2025.07.064","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.07.064","url":null,"abstract":"Bus electrification is an important consideration in urban transportation systems. Battery Electric Buses (BEBs), however, often need recharging, making the Problem of Locating and Allocating Charging Equipment for BEBs (PLACE-BEB) essential for efficient operations. This study proposes an optimization framework to solve the PLACE-BEB by determining the optimal placement of charger types at potential locations under the stochastic charging demand. Leveraging the existing stochastic location literature, we develop a Mixed-Integer Non-Linear Program (MINLP) to model the problem. To solve this problem, we develop an exact solution method that minimizes the costs related to building charging stations, charger allocation, travel to stations, and average queueing and charging times. Queueing dynamics are modeled using an <ce:italic>M</ce:italic>/<ce:italic>M</ce:italic>/<ce:italic>s</ce:italic> queue, with the number of servers at each location treated as a decision variable. To improve scalability, we implement a Simulated Annealing (SA) and a Genetic Algorithm (GA) allowing for efficient solutions to large-scale problems. The computational performance of the methods was thoroughly evaluated, revealing that SA was effective for small-scale problems, while GA outperformed others for large-scale instances. A case study comparing garage-only, other-only, and mixed scenarios, along with joint deployment, highlighted the cost benefits of a collaborative and a comprehensive approach. Sensitivity analyses showed that the waiting time is a key factor to consider in the decision-making.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"34 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145009225","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":"An improved algorithm exploiting the characteristics of a distance-based preference function to converge to preferred solutions","authors":"G. Karakaya, M. Köksalan","doi":"10.1016/j.ejor.2025.08.036","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.08.036","url":null,"abstract":"We address the problem of choosing the most preferred of a set of alternatives that are defined by multiple criteria. We assume that the decision maker’s preferences can be represented by a general class of weighted distance functions that can take a wide variety of forms. We exploit the characteristics of these functions and develop an interactive algorithm that guarantees to find the most preferred alternative of a decision maker whose preferences are consistent with a distance-based function. In contrast with a benchmark algorithm that uses similar preference functions, our algorithm moves through different distance functions effectively to converge to the best alternative quickly. Our experiments on a variety of three- and four-objective problems demonstrate that our algorithm performs well, far outperforming the benchmark algorithm in terms of the required preference information from the decision maker.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"24 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145009228","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":"User information control and its strategic implications for information strategies in digital businesses","authors":"Xuan Xi, Yulin Zhang, Mark Goh","doi":"10.1016/j.ejor.2025.08.046","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.08.046","url":null,"abstract":"With the advancement of technologies like cloud computing and artificial intelligence, digital businesses increasingly collect user information to provide personalized services and sell this information to third parties. However, the emergence of privacy-preserving allows users to control their personal information to minimize privacy losses. This paper investigates how competing digital businesses invest in user information collection and set information pricing, and whether they should allow users to opt out of personal information tracking or even control information authorization. We develop a game-theoretic model to examine the impact of user information control on the information strategies of competing digital businesses. In this model, digital businesses compete for user information and third-party market share, while users balance trade-offs between information control, privacy concerns, and the benefits of information sharing. We find that when users cannot opt out of personal information tracking, digital businesses engage in intense competition for both information collection and pricing, particularly when privacy concerns are low. Conversely, when users can opt out, higher privacy concerns amplify the information advantage of high-level digital businesses, increasing competition and widening disparities in information collection level. Moreover, when privacy concerns are low and the marginal value of user information is high, introducing user information authorization models can expand the information market, boosting the profits of digital businesses. In this case, user control over personal information may reduce consumer surplus. When some anonymous users prohibit information tracking, the presence of double homing users leads the high-level digital business to reduce its information collection.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"75 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145009226","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":"Should a multinational firm incentivize timely orders from retailing division through intersectoral data transfer?","authors":"Baozhuang Niu, Jiayun Liu, Yiyuan Ruan","doi":"10.1016/j.ejor.2025.08.045","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.08.045","url":null,"abstract":"In the cross-border e-commerce era, many multinational firms (MNFs) are operating local retailing divisions in emerging markets while also selling through e-tailers. Though e-tailers usually have a demand information advantage that can be known by the MNFs’ manufacturing divisions, interestingly, we note that due to a lack of cyber resilience, data transfer barriers between MNFs’ manufacturing and retailing divisions have widely inhibited intersectoral information transfer. Therefore, risk-averse retailing divisions may postpone orders to wait for the information, exposing them to a second-mover disadvantage. Intuitively, advanced intersectoral data transfer such as AI-enabled cybersecurity cloud platform is capable of facilitating the retailing division’s timely order based on demand information shared by the MNF, we observe that MNF’s tax-planning may be hampered under the Arm’s Length Principle, and tensions between horizontal (i.e., the e-tailer and the MNF’s retailing division) and vertical coordination may be exacerbated. Therefore, we study the MNF’s incentives to apply intersectoral data transfer based on a co-opetition game-theoretic model. We show that the retailing division’s preference varies with the tax disparity and its risk-averse degree. When tax disparity narrows, the <ce:italic>sourcing cost-saving effect</ce:italic> from postponed ordering allows the division to access demand information without incurring high costs. Establishing intersectoral data transfer is not always optimal for either the MNF or its retailing division. The MNF benefits when the tax disparity is high, whereas the retailing division should balance the information value against sourcing cost saving when deciding order timing.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"27 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145009230","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}