{"title":"Optimal outbound shipment policy for an inventory system with advance demand information","authors":"Jana Ralfs, Dai T. Pham, Gudrun P. Kiesmüller","doi":"10.1016/j.ejor.2025.01.020","DOIUrl":"10.1016/j.ejor.2025.01.020","url":null,"abstract":"<div><div>This paper examines a single-echelon inventory system that fulfills stochastic orders from a production facility using a time-based shipment consolidation strategy. In this system, the production facility provides advance demand information to the warehouse, ensuring that all orders are placed with a positive demand lead time. Using value iteration, we identify the optimal outbound shipment quantities while accounting for costs related to early deliveries, late deliveries, and shipments. Additionally, this research highlights the impact of advance demand information on transportation capacity planning and the optimization of load factors</div><div>The results from value iteration enable us to observe the general structure of the optimal dispatch policy, and we determine that it is a multidimensional threshold policy. Based on this observation, we introduce an approximated three-level threshold policy with acceptable performance. Furthermore, the decision itself is easier to interpret and to explain. To analyze large-scale instances, we compare several heuristic policies. First, we develop a deep reinforcement learning algorithm that approximates the value of the post-decision state instead of the pre-decision state. We compare our approach to value iteration and find that our method works very well; the average optimality gap is 0.08%. Additionally, three simple heuristic policies are proposed that might be justifiable in specific situations.</div><div>Finally, we find that the value of advance demand information does not follow a linear pattern but decreases as the demand lead time increases. Furthermore, the transportation capacity should be planned in the range of the mean demand between two shipments.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"324 1","pages":"Pages 92-103"},"PeriodicalIF":6.0,"publicationDate":"2025-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143385314","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":"The first mile is the hardest: A deep learning-assisted matheuristic for container assignment in first-mile logistics","authors":"Simon Emde , Ana Alina Tudoran","doi":"10.1016/j.ejor.2025.01.024","DOIUrl":"10.1016/j.ejor.2025.01.024","url":null,"abstract":"<div><div>Urban logistics has been recognized as one of the most complex and expensive part of e-commerce supply chains. An increasing share of this complexity comes from the first mile, where shipments are initially picked up to be fed into the transportation network. First-mile pickup volumes have become fragmented due to the enormous growth of e-commerce marketplaces, which allow even small-size vendors access to the global market. These local vendors usually cannot palletize their own shipments but instead rely on containers provided by a logistics provider. From the logistics provider’s perspective, this situation poses the following novel problem: from a given pool of containers, how many containers of what size should each vendor receive when? It is neither desirable to supply too little container capacity because undersupply leads to shipments being loose-loaded, i.e., loaded individually without consolidation in a container; nor should the assigned containers be too large because oversupply wastes precious space. We demonstrate NP-hardness of the problem and develop a matheuristic, which uses a mathematical solver to assemble partial container assignments into complete solutions. The partial assignments are generated with the help of a deep neural network (DNN), trained on realistic data from a European e-commerce logistics provider. The deep learning-assisted matheuristic allows serving the same number of vendors with about 6% fewer routes than the rule of thumb used in practice due to better vehicle utilization. We also investigate the trade-off between loose-loaded shipments and space utilization and the effect on the routes of the collection vehicles.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"324 1","pages":"Pages 335-350"},"PeriodicalIF":6.0,"publicationDate":"2025-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143077789","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":"The interplay between charitable donation strategies and sales mode selection in the platform","authors":"Chen Zhu, Georges Zaccour","doi":"10.1016/j.ejor.2025.01.031","DOIUrl":"https://doi.org/10.1016/j.ejor.2025.01.031","url":null,"abstract":"Motivated by the emergence of offline and online donations, this paper explores the interplay between charitable donations and strategic choice of sales mode in a philanthropic supply chain consisting of a manufacturer and a platform. We consider two donation strategies, offline donations and both offline and online donations that are traceable by blockchain technology, and two business models, i.e., reselling sales mode and agency sales mode. Donations by the manufacturer are used to boost its charitable image, which in turn affects positively the demand. As such image can only be built over time, we adopt a differential game formalism that captures both the strategic interactions between the two players and the dynamic nature of the problem. We characterize and compare the equilibrium strategies and outcomes for different choices of selling mode and donation option. Our findings can be summarized as follows. First, we obtain that only under some conditions that online donations enhance the charitable image, members’ profits, consumer surplus, and social welfare. Second, regardless of the sales mode, the conditions for the platform to adopt online donations are the most stringent, and the conditions for the enhancement of the charitable image are the most lenient. Third, the implementation of online donations does not have much impact on the Pareto regions of the agency mode but has a much greater impact on the Pareto regions of the reselling mode, especially for medium and large online donation amounts. These changes hinge on the trade-offs for members between online and offline donations.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"20 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-01-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143077792","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}
Xiaohuan Lyu , Eduardo Lalla-Ruiz , Frederik Schulte
{"title":"The collaborative berth allocation problem with row-generation algorithms for stable cost allocations","authors":"Xiaohuan Lyu , Eduardo Lalla-Ruiz , Frederik Schulte","doi":"10.1016/j.ejor.2024.12.048","DOIUrl":"10.1016/j.ejor.2024.12.048","url":null,"abstract":"<div><div>Recent supply chain disruptions and crisis response policies (e.g., the COVID-19 pandemic and the Red Sea crisis) have highlighted the role of container terminals as crucial and scarce resources in the global economy. To tackle these challenges, the industry increasingly aims for advanced operational collaboration among multiple stakeholders, as demonstrated by the ambitions of the recently founded Gemini alliance. Nonetheless, collaborative planning models often disregard the requirements and incentives of stakeholders or simply solve idealized small instances. Motivated by the above, we design novel and effective collaboration mechanisms among terminal operators that share the resources (berths and quay cranes). We first define the collaborative berth allocation problem and propose a mixed integer linear programming (MILP) model to minimize the total cost of all terminals, referred to as the coalitional costs. We adopt the core and the nucleolus concepts from cooperative game theory to allocate the coalitional costs such that stakeholders have stable incentives to collaborate. To obtain solutions for realistic instance sizes, we propose two exact row-generation-based core and nucleolus algorithms that are versatile and can be used for various combinatorial optimization problems. To the best of our knowledge, the proposed row-generation approach for the nucleolus is the first of its kind for combinatorial optimization problems. Extensive experiments demonstrate that the collaborative berth allocation approach achieves up to 28.44% of cost savings, increasing the solution space in disruptive situations, while the proposed core and nucleolus solutions guarantee the collaboration incentives for individual terminals.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"323 3","pages":"Pages 888-906"},"PeriodicalIF":6.0,"publicationDate":"2025-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143049752","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":"Formulations and Branch-and-cut algorithms for the Period Travelling Salesman Problem","authors":"Sofia Henriques, Ana Paias","doi":"10.1016/j.ejor.2025.01.015","DOIUrl":"10.1016/j.ejor.2025.01.015","url":null,"abstract":"<div><div>In this work, we address two variants of the Period Travelling Salesman Problem: one where some nodes cannot be visited consecutively over the time horizon, and another one where this restriction is not imposed. A new flow-based formulation that uses specific information about the visit patterns of nodes is studied and empirical tests show that it is able to solve test instances where a flow-based formulation based on the Single Commodity Flow formulation for the Travelling Salesman Problem reached the time limit. Non-compact formulations are studied in this work as well. We propose two new sets of exponentially-sized valid inequalities that have not been studied yet in the literature. A formulation which is based on connectivity cuts per period enhanced with these sets of valid inequalities proved to be the most efficient and it was able to solve several instances.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"323 3","pages":"Pages 739-752"},"PeriodicalIF":6.0,"publicationDate":"2025-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143077793","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 Dynamic Team Orienteering Problem","authors":"Emre Kirac , Ashlea Bennett Milburn , Ridvan Gedik","doi":"10.1016/j.ejor.2025.01.009","DOIUrl":"10.1016/j.ejor.2025.01.009","url":null,"abstract":"<div><div>This study introduces a new dynamic routing problem, namely the Dynamic Team Orienteering Problem (DTOP), which is a dynamic variant of the Team Orienteering Problem (TOP). In the DTOP, some customer locations are known a priori, while others are dynamic, with each location associated with a profit value. The goal is to maximize the sum of collected profits by visiting a set of customer locations within a time limit. This problem arises in several practical applications such as disaster relief, technician, tourist, and school bus routing problems. We adopt a Multiple Plan Approach (MPA) to solve the proposed problem, utilizing both a consensus function method and a demand-served method to select the distinguished plan—the most promising solution from a pool of alternative routing plans. To assess the effectiveness of these methods, we employ a sophisticated greedy algorithm tailored to address the unique challenges posed by the DTOP. In addition, we employ a reference offline algorithm designed for solving the static variant of the problem. To facilitate our evaluation, we introduce a comprehensive set of 1161 new benchmark instances for the DTOP, adapted from well-established TOP benchmark instances. Our comparative analysis centers on the average percentage deviation of algorithmic solutions from the reference offline solutions.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"324 1","pages":"Pages 22-39"},"PeriodicalIF":6.0,"publicationDate":"2025-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143385315","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":"Managing social responsibility efforts with the consideration of violation probability","authors":"Jiayan Xu , Housheng Duan , Sijing Deng","doi":"10.1016/j.ejor.2025.01.016","DOIUrl":"10.1016/j.ejor.2025.01.016","url":null,"abstract":"<div><div>Corporate social responsibility (CSR) has a strong impact on the external image of the enterprise. The violation of CSR not only harms the enterprise but also negatively affects other firms in the supply chain. This paper establishes a game-theoretical model to study the management of social responsibility efforts with considerations of violation probability. The upstream manufacturer and downstream retailer can reduce the violation probability by exerting CSR efforts. Specifically, we study the following four models, including both participants exerting efforts, only the manufacturer exerting effort, only the retailer exerting effort, and neither participant exerting effort. Our analysis shows that as the effort cost of the manufacturer increases, the retailer may increase or decrease his effort level under both participants exerting efforts, due to the complementary and substitution effects between the efforts of the manufacturer and retailer. We also find that compared with both participants exerting efforts, the retailer may increase or decrease his effort level under only the retailer exerting effort, and the effort level of the manufacturer may grow or shrink under only the manufacturer exerting effort. In addition, we study the decision matrix for the manufacturer and retailer, and find that in equilibrium the manufacturer always has incentives to exert CSR effort, while the retailer may prefer a free ride and sometimes chooses not to exert effort. Interestingly, we find that the total supply chain profit may not be the highest under both participants exerting efforts, but it is the lowest under neither participant exerting effort.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"323 3","pages":"Pages 852-867"},"PeriodicalIF":6.0,"publicationDate":"2025-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143049754","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":"Data-driven condition-based maintenance optimization given limited data","authors":"Yue Cai, Bram de Jonge, Ruud H. Teunter","doi":"10.1016/j.ejor.2025.01.010","DOIUrl":"10.1016/j.ejor.2025.01.010","url":null,"abstract":"<div><div>Unexpected failures of operating systems can result in severe consequences and huge economic losses. To prevent them, preventive maintenance based on condition data can be performed. Existing studies either rely on the assumption of a known deterioration process or an abundance of data. However, in practice, it is unlikely that the deterioration process is known, and data is often limited (to a few runs-to-failure), especially for new systems. This paper presents a fully data-driven approach for condition-based maintenance (CBM) optimization that is especially useful in situations with limited data. The approach uses penalized logistic regression to estimate the failure probability as a function of the deterioration level and allows any deterioration level to be selected as the preventive maintenance threshold, also those that have not been observed in the past. Numerical results indicate that the preventive maintenance thresholds resulting from our proposed approach closely approach the optimal values.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"324 1","pages":"Pages 324-334"},"PeriodicalIF":6.0,"publicationDate":"2025-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143077794","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":"Sustainable optimal stock portfolios: What relationship between sustainability and performance?","authors":"Beatrice Bertelli , Costanza Torricelli","doi":"10.1016/j.ejor.2025.01.021","DOIUrl":"10.1016/j.ejor.2025.01.021","url":null,"abstract":"<div><div>The aim of this paper is to compare different strategies to combine sustainability and optimality in stock portfolios to assess whether there is an association between their average ESG (Environmental, Social, Governance) score and their financial performance and, if so, whether it depends on the specific strategy used. To this end, we confront the risk-adjusted performance of three ESG-compliant optimal portfolios resulting from: (i) optimizing on an ESG-screened sample, (ii) including a portfolio ESG-score constraint in the optimization on an unscreened sample, (iii) our original proposal of optimizing with an ESG-score constraint (so as to reach a target) over a slightly screened sample (so as to exclude companies with lowest sustainability). The optimization is implemented with Bloomberg ESG scores over a sample from the EURO STOXX Index in the period January 2007–August 2022 by minimizing portfolio residual risk. Two are the main conclusions from our results. First, we never find a significant negative association between portfolios’ average ESG score and performance independently of the strategy used. Second, we find a positive association when the first and the third strategy are implemented with a high screening level. To be noted that the relationship between the ESG score and the risk-return ratio in the initial investment set plays a relevant role. If, as in our dataset, this relationship is essentially convex, with an appropriate level of screening portfolios are composed only by stocks whereby a higher ESG score is associated with a higher risk-return profile.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"323 1","pages":"Pages 323-340"},"PeriodicalIF":6.0,"publicationDate":"2025-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143049753","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":"Dynamic pharmaceutical product portfolio management with flexible resource profiles","authors":"Xin Fei , Jürgen Branke , Nalân Gülpınar","doi":"10.1016/j.ejor.2025.01.011","DOIUrl":"10.1016/j.ejor.2025.01.011","url":null,"abstract":"<div><div>The pharmaceutical industry faces growing pressure to develop innovative, affordable products faster. Completing clinical trials on time is crucial, as revenue strongly depends on the finite patent protection. In this paper, we consider dynamic resource allocation for pharmaceutical product portfolio management and clinical trial scheduling, proposing a modelling framework, where resource profiles for ongoing clinical trials are flexible, with the possibility to add additional resources, thereby accelerating the completion of a clinical trial and enhancing pipeline profitability. Specifically, we treat both resource profiles and clinical trial scheduling as decision variables in the management of multiple pharmaceutical products to maximise the expected discounted profit, accounting for uncertainty in clinical trial outcomes. We formulate this problem as a Markov decision process and design a Monte Carlo tree search approach that can identify the best decision for each state by utilising a base policy to estimate value functions. We significantly improve the algorithm efficiency by proposing a statistical racing procedure using correlated sampling (common random numbers) and Bernstein’s inequality. We demonstrate the effectiveness of the proposed approach on a pharmaceutical drug development pipeline problem, finding that the proposed modelling framework with flexible resource profiles improves the resource efficiency and profitability, and the proposed Monte Carlo tree search algorithm outperforms existing approaches in terms of efficiency and solution quality.</div></div>","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"324 1","pages":"Pages 308-323"},"PeriodicalIF":6.0,"publicationDate":"2025-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143049755","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}