{"title":"An indifference result for social choice rules in large societies","authors":"","doi":"10.1016/j.ejor.2024.09.018","DOIUrl":"10.1016/j.ejor.2024.09.018","url":null,"abstract":"<div><div>Social choice rules can be defined or derived by minimizing distance-based objective functions. One problem with this approach is that any social choice rule can be derived by selecting an appropriate distance function. Another problem comes from the computational difficulty of determining the solution of some social choice rules. We provide a general positive indifference result when looking at expected average distances by showing that on ‘average’ each social choice rule performs equally well with respect to a very large class of distance functions if the number of voters is large. Our result applies also to the frequently employed Kendall <span><math><mi>τ</mi></math></span>, Spearman rank correlation and Spearman footrule ‘distance functions’.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":null,"pages":null},"PeriodicalIF":6.0,"publicationDate":"2024-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142231657","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"An evaluation of common modeling choices for the vehicle routing problem with stochastic demands","authors":"","doi":"10.1016/j.ejor.2024.09.007","DOIUrl":"10.1016/j.ejor.2024.09.007","url":null,"abstract":"<div><div>We investigate three common modeling choices for the vehicle routing problem with stochastic demands: (i) the total expected demand of customers on a route may not exceed the capacity of the vehicle, (ii) the number of routes is fixed, and (iii) demand is distributed with a support that contains negative-valued realizations. We prove that modeling choices (i) and (ii) result in an arbitrarily large increase of the optimal objective value in the worst case. Additionally, we provide lower and upper bounds on the change of the optimal objective value following from (iii) in case the actual distribution of demand is censored, truncated or folded. We also evaluate the consequences of these choices numerically, by employing a state-of-the-art integer <span><math><mi>L</mi></math></span>-shaped method to solve the vehicle routing problem with stochastic demands to optimality, which we modify to deal with the alternative choices. We find that restricting the expected demand of a route to the vehicle’s capacity has a limited effect on the optimal objective value for most, but not all, benchmark instances from the literature, while drastically reducing the computation times of the integer <span><math><mi>L</mi></math></span>-shaped method. When restricting the number of routes, a similar effect occurs when the total expected demand on a route is not restricted. Otherwise, the computation time decreases only slightly, and even increases for some benchmark instances. For instances from the literature, despite admitting negative realizations, the normal distributions used to model demand are an adequate approximation for censored, truncated and folded normal distributions that have nonnegative supports.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":null,"pages":null},"PeriodicalIF":6.0,"publicationDate":"2024-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142325854","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Condition-based switching, loading, and age-based maintenance policies for standby systems","authors":"Xian Zhao, Rong Li, He Han, Qingan Qiu","doi":"10.1016/j.ejor.2024.09.014","DOIUrl":"https://doi.org/10.1016/j.ejor.2024.09.014","url":null,"abstract":"Standby techniques are widely incorporated in structural design to enhance the inherent reliability of systems. To further leverage the system performance during operation, decision-makers can adopt operational policies to manage system degradation. Specifically, at the system level, unit switching that dynamically determines the online unit contributes to avoiding unexpected shutdowns. At the unit level, adjusting load levels to manage the trade-off between condition degradation and revenue accumulation is crucial for maximizing profit. Additionally, adopting age-based maintenance as a tactical decision, which effectively facilitates the integration of maintenance resources, can be implemented to restore a degraded system. For instance, maintenance is typically scheduled at fixed moments for multi-generator power systems located in remote areas. In between maintenance moments, the proactive switching of generators can ensure uninterrupted output, and the adjustment of load levels for online generators helps to maximize output. Motivated by such engineering practices, this paper investigates condition-based switching, loading, and age-based maintenance policies for standby systems to maximize the expected profit rate in the long-run horizon. The problem is formulated as a Markov decision process. The structural properties of the control-limit switching and monotone loading policies are analyzed for easy policy implementation and efficient problem solutions. For comparative purposes, several heuristic policies are proposed and evaluated. Finally, numerical examples are presented to validate theoretical results and illustrate the superiority of the proposed risk control policy.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":null,"pages":null},"PeriodicalIF":6.4,"publicationDate":"2024-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142231658","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 newsvendor model with multiple reference points: Target-setting for aspirational newsvendors","authors":"","doi":"10.1016/j.ejor.2024.09.015","DOIUrl":"10.1016/j.ejor.2024.09.015","url":null,"abstract":"<div><div>Prospect theory posits that the determination of an outcome as a gain or loss hinges upon the reference points, thereby exerting a substantial influence on the decision-making processes of individuals. These reference points can encompass both external targets and internal aspirations (self-goals), forming two potential candidates. Despite a growing body of evidence showcasing the concurrent impact of multiple reference points on decision-makers’ choices, scant attention has been accorded to this phenomenon within the realm of operations management literature. In light of this, the present study delves into the influence wielded by an external target, functioning as a reference point, on the decisions and profitability of newsvendors who also harbor a well-defined aspiration (self-goal) reference point. The study introduces two distinct archetypes of newsvendors: the balanced newsvendors, adept at harmonizing personal needs with target attainment and thus navigating decisions influenced by dual reference points; and the focused newsvendors, singularly fixated on target realization and thereby governed by a sole target reference point. Our findings reveal that the effects of target-setting in boosting expected profits on both categories of newsvendors are contingent upon the specific value attributed to their self-goal. The implications of target-setting can either yield advantages or drawbacks, contingent upon the self-goal. This asymmetry in outcomes holds true for both balanced and focused newsvendors, with the former exhibiting a higher likelihood of deriving benefits from target-setting. Moreover, an exploration of scenarios wherein a newsvendor’s self-goal may undergo updates underscores the potential for further enhancement in the performance of balanced newsvendors.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":null,"pages":null},"PeriodicalIF":6.0,"publicationDate":"2024-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142231660","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":"Equilibrium analysis of the seller’s fulfillment channels and sales channels","authors":"","doi":"10.1016/j.ejor.2024.09.009","DOIUrl":"10.1016/j.ejor.2024.09.009","url":null,"abstract":"<div><div>Sellers’ products can be sold either through platform channels or through their own channels. Also, sellers’ orders can either be fulfilled by platforms (FBP) or be fulfilled by third-party merchants (FBM). We consider a platform and a representative seller that compete in selling two substitutable products. We develop an analytical framework for identifying each firm’s structure preference by comparing four modes: own channel with FBP (Mode OP), own channel with FBM (Mode OM), platform channel with FBP (Mode PP), and platform channel with FBM (Mode PM). Our research establishes several insights. When the seller’s products are sold through either his own channel or the platform channel with a <em>low</em> commission rate, the platform always prefers to provide fulfillment services for the seller – who may be unwilling to accept that service. In contrast, when the seller’s products are sold through the platform channel with a <em>high</em> commission rate, the platform has more incentive to “protect” the seller’s profit by offering (resp. not offering) fulfillment services to him when he prefers FBP (resp. FBM). These outcomes indicate that the likelihood of platform and seller agreeing on a fulfillment channel for the seller’s orders is strongly affected by the commission rate and the seller’s sales channel. Besides, even though the platform is always willing to provide sales channels for the seller, a seller’s acceptance of that offer is influenced by his own fulfillment channels. Finally, our analysis reveals that the only possible win–win equilibrium structures for the platform and the seller are Mode PP and Mode PM.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":null,"pages":null},"PeriodicalIF":6.0,"publicationDate":"2024-09-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142231661","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":"Reference alternatives based knockout-tournament procedure for ranking and selection","authors":"","doi":"10.1016/j.ejor.2024.08.031","DOIUrl":"10.1016/j.ejor.2024.08.031","url":null,"abstract":"<div><div>The knockout-tournament (<span><math><mi>KT</mi></math></span>) procedure is an efficient parallel procedure recently developed to solve large-scale ranking and selection (R&S) problems. The procedure adopts a selection structure which is commonly used in many sports tournaments, and eliminates alternatives by conducting “matches” between paired alternatives round-by-round. In this paper, to further improve the procedure’s performance in solving large-scale problems, we propose a major modification of the procedure. Specifically, in each round of the selection, before pairing the surviving alternatives and conducting the matches, we first choose an alternative as the reference alternative and then add the reference alternative to each match. We call the new procedure Procedure <span><math><mi>i</mi></math></span>-<span><math><mi>KT</mi></math></span>, where <span><math><mi>i</mi></math></span>-<span><math><mi>KT</mi></math></span> stands for “improved knockout-tournament”. We show that by carefully choosing the reference alternative and designing the pairing scheme for the remaining surviving alternatives in each round of the selection, Procedure <span><math><mi>i</mi></math></span>-<span><math><mi>KT</mi></math></span> can achieve significant improvements on both the average sample size required in each match and the total number of matches required during the entire selection process. In the meantime, we demonstrate that after the modifications, Procedure <span><math><mi>i</mi></math></span>-<span><math><mi>KT</mi></math></span> still fits parallel computing environments well. We compare Procedure <span><math><mi>i</mi></math></span>-<span><math><mi>KT</mi></math></span> with various procedures on different test examples and numerically justify our theoretical analysis.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":null,"pages":null},"PeriodicalIF":6.0,"publicationDate":"2024-09-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142325872","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":"Overseas production or domestic production? Impacts of tax disparity and market difference","authors":"","doi":"10.1016/j.ejor.2024.09.012","DOIUrl":"10.1016/j.ejor.2024.09.012","url":null,"abstract":"<div><div>Overseas and domestic production are two commonly employed strategies for multinational firms (MNFs) to manage their global production operations. Recent tax-cutting initiatives have made domestic production an attractive option for MNFs. We aim to investigate whether such initiatives can effectively induce MNFs to produce domestically, especially when they cater to both domestic and foreign markets. In this study, we develop a game-theoretical model that considers an MNF with two subsidiaries - a production subsidiary and a retail subsidiary - located in different markets, and a third-party seller that resells the MNF's product in the domestic market. We take into account two important differences between the two markets, namely the tax disparity and the market potential difference. Our analysis reveals that a higher foreign market potential can strengthen the MNF's tax-saving incentive under the domestic production strategy. We find that a relatively lower domestic tax rate may not induce the MNF's domestic production even if the foreign market potential is low. On the other hand, when the domestic channel competition is intense, a higher domestic tax rate may still incentivize the MNF to produce domestically. These results depend on the tradeoffs among the tax-saving benefit, the third-party seller's free-riding, and the channel competition. We caution that promoting domestic production through a low tax rate may harm domestic consumer surplus, highlighting the need for policymakers to carefully consider the impact of tax policies on consumers.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":null,"pages":null},"PeriodicalIF":6.0,"publicationDate":"2024-09-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142231659","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":"App release strategy in the presence of competitive platforms’ quality upgrades","authors":"","doi":"10.1016/j.ejor.2024.09.001","DOIUrl":"10.1016/j.ejor.2024.09.001","url":null,"abstract":"<div><div>Mobile platforms such as Google Android and Apple iOS have established their app stores to entice numerous app developers into their platform ecosystem. These platform firms will deliberate on upgrading the quality of their platforms to bolster performance and security, while app developers may choose to rely on different platforms to release their developed apps as a strategic response. In this study, we explore how the quality upgrade decisions of two competitive platforms affect the app release strategies of an app developer, and reveal the optimal quality upgrade and app release strategies for supply chain members. The platform firms compete on both the platform price and platform quality, and the app developer needs to make decisions about the price and quality of the app. Our analysis suggests that, interestingly, there always exist suitable differences in upgrade efficiency, enabling one platform firm to upgrade the quality in equilibrium irrespective of the app developer's release strategy. In addition, we find that when the app developer releases the app on only one platform, the quality upgrade from the collaborative platform can yield a win-win outcome for supply chain members. Furthermore, our analysis shows that releasing the app on two platforms is not necessarily always the most beneficial compared to releasing on just one for the app developer. The findings carry implications for app developers seeking contented platform collaborators, as well as platform firms such as Google and Apple, which can cope with app release strategies.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":null,"pages":null},"PeriodicalIF":6.0,"publicationDate":"2024-09-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142275776","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":"Retailer’s information sharing and manufacturer’s channel expansion in the live-streaming E-commerce era","authors":"","doi":"10.1016/j.ejor.2024.09.008","DOIUrl":"10.1016/j.ejor.2024.09.008","url":null,"abstract":"<div><div>Numerous manufacturers started to embrace live-streaming selling channels in addition to their preexisting retail channels during the outbreak of COVID-19. Our work investigates a retailer’s optimal strategy for sharing demand information with a manufacturer who may collaborate with a streamer to build a live-streaming selling channel. The results indicate that the manufacturer’s live-streaming selling channel expansion via an influencer does not necessarily harm the retailer because the retailer can free ride on the market expansion due to the social influence of the streamer. We also provide a rationale for the widespread voluntary information sharing observed in the era of live-streaming selling. The retailer can discourage or encourage the manufacturer to establish a live-streaming channel by sharing the demand information, which depends on the streamer’s social influence. In addition, potential changes to the information sharing policy result in several unexpected profit implications for the manufacturer, whose profit exhibits a nonmonotonic relationship to the streamer’s social influence and the channel expansion cost. In other words, our results counterintuitively show that the manufacturer may suffer from cooperating with a highly influential streamer in a live-streaming channel but benefit from choosing a less influential one.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":null,"pages":null},"PeriodicalIF":6.0,"publicationDate":"2024-09-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142231662","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":"Addressing the multiplicity of optimal solutions to the Clonal Deconvolution and Evolution Problem","authors":"","doi":"10.1016/j.ejor.2024.09.006","DOIUrl":"10.1016/j.ejor.2024.09.006","url":null,"abstract":"<div><div>The Clonal Deconvolution and Evolution Problem consists on unraveling the clonal structure and phylogeny of a tumor using estimated mutation frequency values obtained from multiple biopsies containing mixtures of tumor clones. In this article, we tackle the problem from an optimization perspective and we explore the number of optimal solutions for a given instance. Even in ideal scenarios without noise, we demonstrate that the Clonal Deconvolution and Evolution Problem is highly under-determined, leading to multiple solutions. Through a comprehensive analysis, we examine the factors contributing to the multiplicity of solutions. We find that as the number of samples increases, the number of optimal solutions decreases. Additionally, we explore how this phenomenon operates across various tumor topology scenarios. To address the issue of the existence of multiple solutions, we present sufficient conditions under which the problem can have a unique solution, and we propose a linear programming-based algorithm that leverages mutation orderings to generate instances with a single solution for a given topology. This algorithm encounters numerical challenges when applied to large instance sizes so, to overcome this, we propose a heuristic adaptation that enables the algorithm’s use for instances of any size.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":null,"pages":null},"PeriodicalIF":6.0,"publicationDate":"2024-09-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142231664","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}