Search results

1 – 10 of over 2000
Article
Publication date: 16 April 2024

Richard Tarpey, Jinfeng Yue, Yong Zha and Jiahong Zhang

The importance of service firms cooperating with digital platforms is widely acknowledged. The authors study three contractual relationships (fixed-cost, cost-sharing, and…

Abstract

Purpose

The importance of service firms cooperating with digital platforms is widely acknowledged. The authors study three contractual relationships (fixed-cost, cost-sharing, and profit-sharing) between service firms (specifically hotels) and digital platforms in a highly fragmented service supply chain to examine which of these contract types optimizes profits.

Design/methodology/approach

The authors extend prior models analyzing the optimal expected total profit from the travel service firm (hotel)–digital platform relationship, providing new insights into each contract type’s ability to coordinate decentralized systems and optimize profits for both parties.

Findings

This study finds that fixed cost contracts cannot coordinate the decentralized system. Cost-sharing contracts can coordinate the decentralized system but only allow one channel profit split. In contrast, profit-sharing contracts may not always perfectly coordinate the decentralized system but support alternative profit allocations. Practically, both profit-sharing and cost-sharing contracts are preferable to fixed-cost contracts.

Practical implications

The paper includes implications for travel service firm managers to consider when structuring contracts with digital platforms to focus on profit optimization. Profit-sharing contracts are most preferable when cost and revenue data are fully shared between parties, while cost-sharing contracts are preferable over fixed-cost contracts.

Originality/value

This study extends prior investigations into the utility of different contract types on the optimal profit of a travel service firm (hotel)-digital platform provider relationship. The research fills a gap in the literature concerning the contracts used in these relationship types.

Details

Journal of Service Theory and Practice, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 22 August 2023

Lei Cui

The construction industry has long been criticized for unethical conduct. The owner usually manages the contractor's opportunistic behaviors by employing a professional…

Abstract

Purpose

The construction industry has long been criticized for unethical conduct. The owner usually manages the contractor's opportunistic behaviors by employing a professional supervisor, but there is a risk of covert collusion between the supervisor and contractor. Based on the principal–agent theory and collusion theory, this paper aims to investigate optimal collusion-proof incentive contracts.

Design/methodology/approach

This paper presents a game-theoretic framework comprising an owner, supervisor and contractor, who interact and pursue maximized self-profits. Built upon the fixed-price incentive contract, cost-reimbursement contract, and revenue-sharing contract, different collusion-proof incentive contracts are investigated. A real project case is used to validate the developed model and derived results.

Findings

This paper shows that the presence of unethical collusion undermines the owner's interests. Especially, the possibility of agent collusion may induce the owner to abandon extracting quality information from the supervisor. Furthermore, information asymmetry significantly affects the construction contract selection, and the application conditions for different incentive contracts are provided.

Research limitations/implications

This study still has some limitations that deserve further exploration. First, this study explores contractor–supervisor collusion but ignores the possibility of the supervisor abusing authority to extort the contractor. Second, to focus on collusion, this paper ignores the supervision costs. What's the optimal supervision effort that the owner should induce the supervisor to exert? Finally, this paper assumes that the colluders involved always keep their promises. However, what if the colluders may break their promises?

Practical implications

Several collusion-proof incentive contracts are explored in a project management setting. The proposed incentive contracts can provide the project owner with effective and practical tools to inhibit covert collusion in construction management and thus safeguard construction project quality.

Originality/value

This study expands the organization collusion theory to the field of construction management and investigates the optimal collusion-proof incentive contracts. In addition, this study is the first to investigate the effects of information asymmetry on contract selection.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 5 April 2024

Liyi Zhang, Mingyue Fu, Teng Fei, Ming K. Lim and Ming-Lang Tseng

This study reduces carbon emission in logistics distribution to realize the low-carbon site optimization for a cold chain logistics distribution center problem.

Abstract

Purpose

This study reduces carbon emission in logistics distribution to realize the low-carbon site optimization for a cold chain logistics distribution center problem.

Design/methodology/approach

This study involves cooling, commodity damage and carbon emissions and establishes the site selection model of low-carbon cold chain logistics distribution center aiming at minimizing total cost, and grey wolf optimization algorithm is used to improve the artificial fish swarm algorithm to solve a cold chain logistics distribution center problem.

Findings

The optimization results and stability of the improved algorithm are significantly improved and compared with other intelligent algorithms. The result is confirmed to use the Beijing-Tianjin-Hebei region site selection. This study reduces composite cost of cold chain logistics and reduces damage to environment to provide a new idea for developing cold chain logistics.

Originality/value

This study contributes to propose an optimization model of low-carbon cold chain logistics site by considering various factors affecting cold chain products and converting carbon emissions into costs. Prior studies are lacking to take carbon emissions into account in the logistics process. The main trend of current economic development is low-carbon and the logistics distribution is an energy consumption and high carbon emissions.

Details

Industrial Management & Data Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 19 March 2024

John Maleyeff and Jingran Xu

The article addresses the optimization of safety stock service levels for parts in a repair kit. The work was undertaken to assist a public transit entity that stores thousands of…

Abstract

Purpose

The article addresses the optimization of safety stock service levels for parts in a repair kit. The work was undertaken to assist a public transit entity that stores thousands of parts used to repair equipment acquired over many decades. Demand is intermittent, procurement lead times are long, and the total inventory investment is significant.

Design/methodology/approach

Demand exists for repair kits, and a repair cannot start until all required parts are available. The cost model includes holding cost to carry the part being modeled as well as shortage cost that consists of the holding cost to carry all other repair kit parts for the duration of the part’s lead time. The model combines deterministic and stochastic approaches by assuming a fixed ordering cycle with Poisson demand.

Findings

The results show that optimal service levels vary as a function of repair demand rate, part lead time, and cost of the part as a percentage of the total part cost for the repair kit. Optimal service levels are higher for inexpensive parts and lower for expensive parts, although the precise levels are impacted by repair demand and part lead time.

Social implications

The proposed model can impact society by improving the operational performance and efficiency of public transit systems, by ensuring that home repair technicians will be prepared for repair tasks, and by reducing the environmental impact of electronic waste consistent with the right-to-repair movement.

Originality/value

The optimization model is unique because (1) it quantifies shortage cost as the cost of unnecessary holding other parts in the repair kit during the shortage time, and (2) it determines a unique service level for each part in a repair kit bases on its lead time, its unit cost, and the total cost of all parts in the repair kit. Results will be counter-intuitive for many inventory managers who would assume that more critical parts should have higher service levels.

Details

Journal of Quality in Maintenance Engineering, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2511

Keywords

Article
Publication date: 7 November 2023

Elke Ielegems and Jan Vanrie

A challenge in implementing Universal Design (UD) is the perceived additional cost, which acts as a barrier to its widespread adoption. The few studies that have examined the cost…

Abstract

Purpose

A challenge in implementing Universal Design (UD) is the perceived additional cost, which acts as a barrier to its widespread adoption. The few studies that have examined the cost for UD apply a theoretical research approach, failing to account for the unique design context that influences construction costs. This article presents a research methodology to calculate the UD cost in a realistic, context-dependent manner.

Design/methodology/approach

To address this gap, “Research-by-Design” is applied in a case study approach involving twelve cases from three typologies: secondary schools, town halls and small retail shops. Two scenarios are compared to the existing situation: (1) “renovating into a 100% inclusive building” and (2) “building fully inclusive right away”.

Findings

Although the methodology is time-consuming, it allows for a fair, realistic and detailed comparison between costs in different scenarios and cases. Findings show how financial implications are strongly related to its scale. Both “renovation” and “new build” scenarios involve costs, but these are considerably lower for the latter. “Circulation” and “Exterior stairs and ramps” are among the most expensive to renovate, but have almost no additional cost in the examined cases for the “new build scenario”.

Research limitations/implications

The research methodology presented in this study is time-consuming, which may limit its feasibility for large-scale cost assessments in diverse contexts.

Practical implications

The research methodology proposed in this study provides valuable insights for architects, designers and stakeholders involved in the implementation of UD. It offers a realistic and context-dependent approach to assess the cost implications of UD, enabling informed decision-making during the design and construction phases.

Social implications

By revealing the specific cost implications of UD in different building contexts, this study contributes to promoting greater accessibility and inclusion in the built environment.

Originality/value

The applied approach distinguishes this study for its ability to provide rich contextual information on actual cost implications for UD. By considering real cases and their unique design contexts, valuable insights are offered into the true costs of implementing UD in the built environment.

Details

Archnet-IJAR: International Journal of Architectural Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2631-6862

Keywords

Article
Publication date: 13 July 2023

S.M. Taghavi, V. Ghezavati, H. Mohammadi Bidhandi and S.M.J. Mirzapour Al-e-Hashem

This paper proposes a two-level supply chain including suppliers and manufacturers. The purpose of this paper is to design a resilient fuzzy risk-averse supply portfolio selection…

Abstract

Purpose

This paper proposes a two-level supply chain including suppliers and manufacturers. The purpose of this paper is to design a resilient fuzzy risk-averse supply portfolio selection approach with lead-time sensitive manufacturers under partial and complete supply facility disruption in addition to the operational risk of imprecise demand to minimize the mean-risk costs. This problem is analyzed for a risk-averse decision maker, and the authors use the conditional value-at-risk (CVaR) as a risk measure, which has particular applications in financial engineering.

Design/methodology/approach

The methodology of the current research includes two phases of conceptual model and mathematical model. In the conceptual model phase, a new supply portfolio selection problem is presented under disruption and operational risks for lead-time sensitive manufacturers and considers resilience strategies for risk-averse decision makers. In the mathematical model phase, the stages of risk-averse two-stage fuzzy-stochastic programming model are formulated according to the above conceptual model, which minimizes the mean-CVaR costs.

Findings

In this paper, several computational experiments were conducted with sensitivity analysis by GAMS (General algebraic modeling system) software to determine the efficiency and significance of the developed model. Results show that the sensitivity of manufacturers to the lead time as well as the occurrence of disruption and operational risks, significantly affect the structure of the supply portfolio selection; hence, manufacturers should be taken into account in the design of this problem.

Originality/value

The study proposes a new two-stage fuzzy-stochastic scenario-based mathematical programming model for the resilient supply portfolio selection for risk-averse decision-makers under disruption and operational risks. This model assumes that the manufacturers are sensitive to lead time, so the demand of manufacturers depends on the suppliers who provide them with services. To manage risks, this model also considers proactive (supplier fortification, pre-positioned emergency inventory) and reactive (revision of allocation decisions) resilience strategies.

Article
Publication date: 1 June 2023

Sareh Khazaeli, Mohammad Saeed Jabalameli and Hadi Sahebi

Due to the importance of quality to customers, this study considers criteria of quality and profit and optimizes both in a multi-echelon cold chain of perishable agricultural…

Abstract

Purpose

Due to the importance of quality to customers, this study considers criteria of quality and profit and optimizes both in a multi-echelon cold chain of perishable agricultural products whose quality immediately begins to deteriorate after harvest. The two objectives of the proposed cold chain are to maximize profit and quality. Since postharvest quality loss in the supply chain depends on various decisions and factors, in addition to strategic decisions, the authors consider the temperature setting in refrigerated facilities and transportation vehicles due to the unfixed shelf life of the products which is related to the temperature found by Arrhenius formula.

Design/methodology/approach

The authors use bi-objective mixed-integer nonlinear programming to design a four-echelon supply chain. The authors integrate the supply chain echelons to detect the sources and factors of quality loss. The four echelons include supply, processing, storage and customer. The decisions, including facility location, assigning nodes of each echelon to corresponding nodes from the adjacent echelon, allocation of vehicles to transport the products from farms to wholesalers, processing selection, and temperature setting in refrigerated facilities, are made in an integrated way. Model verification and validation in the case study are done based on three perishable herbal plants.

Findings

The model obtains a 29% profit against a total cost of 71 and 93% of original quality of the crops is maintained, indicating a 7% quality loss. The final quality of 93% is the result of making a US$6m investment in the supply chain, including the procurement of high-quality raw materials; facility establishment; high-speed, high-capacity vehicles; location assignment; processing selection and refrigeration equipment in the storage and transportation systems, helping to maximize both the final quality of the products and the total profit.

Research limitations/implications

The proposed supply chain model should help managers with modeling decisions, especially when it comes to cold chains for agricultural products. The model yields these results – optimal location-allocation decisions for the facilities to minimize distances between the network nodes, which save time and maintain the majority of the products’ original quality; choosing the most appropriate processing method, which reduces the perishability rate; providing high-capacity, high-speed vehicles in the logistics system, which minimizes transportation costs and maximizes the quality; and setting the right temperature in the refrigerated facilities, which mitigates the postharvest decay reaction rate of the products.

Practical implications

Comparison of the results of the present research with those of the traditional chain (obtained through experts) shows that since the designed chain increases the profit as well as the final quality, it has benefits for the main chain stakeholders, which are customers of agricultural products. This study model is expected to have a positive impact on the environment by placing strong emphasis on quality and preventing excessive waste generation and air pollution by imposing a financial penalty on extra demand production.

Social implications

Since profit and quality of the final product are two important factors in all cultures and communities, the proposed supply chain model can be used in any food industry around the world. Applying the proposed model induces growth in local industries and promotes the culture of prioritizing quality in societies.

Originality/value

To the best of the authors’ knowledge, this is the first research on a bi-objective four-echelon (supply, processing, storage and customer) postharvest supply chain for agricultural products including that integrates transportation logistics and considers the deterioration rate of products as a time-dependent variable at different levels of decision-making.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 14 March 2024

Marcel Peppel, Stefan Spinler and Matthias Winkenbach

The e-commerce boom presents new challenges for last-mile delivery (LMD), which may be mitigated by new delivery technologies. This paper evaluates the impact of mobile parcel…

Abstract

Purpose

The e-commerce boom presents new challenges for last-mile delivery (LMD), which may be mitigated by new delivery technologies. This paper evaluates the impact of mobile parcel lockers (MPL) on costs and CO2 equivalent (CO2e) emissions in existing LMD networks, which include home delivery and shipments to stationary parcel lockers.

Design/methodology/approach

To describe customers’ preferences, we design a multinomial logit model based on recipients’ travel distance to pick-up locations and availability at home. Based on route cost estimation, we define the operating costs for MPLs. We devise a mathematical model with binary decision variables to optimize the location of MPLs.

Findings

Our study demonstrates that integrating MPLs leads to additional cost savings of 8.7% and extra CO2e emissions savings of up to 5.4%. Our analysis of several regional clusters suggests that MPLs yield benefits in highly populous cities but may result in additional emissions in more rural areas where recipients drive longer distances to pick-ups.

Originality/value

This paper designs a suitable operating model for MPLs and demonstrates environmental and economic savings. Moreover, it adds recipients’ availability at home to receive parcels improving the accuracy of stochastic demand. In addition, MPLs are evaluated in the context of several regional clusters ranging from large cities to rural areas. Thus, we provide managerial guidance to logistics service providers how and where to deploy MPLs.

Details

International Journal of Physical Distribution & Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 3 January 2024

Sudhir Rama Murthy, Thayla Tavares Sousa-Zomer, Tim Minshall, Chander Velu, Nikolai Kazantsev and Duncan McFarlane

Advancements in responsive manufacturing have been supporting companies over the last few decades. However, manufacturers now operate in a context of continuous uncertainty. This…

Abstract

Purpose

Advancements in responsive manufacturing have been supporting companies over the last few decades. However, manufacturers now operate in a context of continuous uncertainty. This research paper explores a mechanism where companies can “elastically” provision and deprovision their production capacity, to enable them in coping with repeated disruptions. Such a mechanism is facilitated by the imitability and substitutability of production resources.

Design/methodology/approach

An inductive study was conducted using Gioia methodology for this theory generation research. Respondents from 20 UK manufacturing companies across multiple industrial sectors reflected on their experience during COVID-19. Resource-based view and resource dependence theory were employed to analyse the manufacturers' use of internal and external production resources.

Findings

The study identifies elastic responses at four operational levels: production-line, factory, company and supply chain. Elastic responses that imposed variable-costs were particularly well-suited for coping with unforeseen disruptions. Further, the imitability and substitutability of manufacturers helped others produce alternate goods during the crisis.

Originality/value

While uniqueness of production capability helps manufacturers sustain competitive advantage against competitors during stable operations, imitability and substitutability are beneficial during a crisis. Successful manufacturing companies need to combine these two approaches to respond effectively to repeated disruptions in a context of ongoing uncertainties. The theoretical contribution is in characterising responsive manufacturing in terms of resource heterogeneity and resource homogeneity, with elastic resourcing as the underlying mechanism.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 21 March 2023

Sujit K. Pradhan, Anil Kumar and Vijay Kumar

Recently, the popularity of software has grown significantly in the market. Enhancement of software is needed to decrease the burden of getting high-quality and reliable software…

Abstract

Purpose

Recently, the popularity of software has grown significantly in the market. Enhancement of software is needed to decrease the burden of getting high-quality and reliable software. To achieve this, the software is upgraded by adding new features to the previous version. Therefore, adding new features in the last version to be consistent with the earlier version is challenging. This paper aims to discuss the optimal software enhancement and customer growth model.

Design/methodology/approach

This paper discusses a model when new features are added to the software, and the customers' adoption of the software is presented as a customer growth model. An optimal control problem is introduced to maximize the profit obtained from the software system over the system's lifetime period. Total gain is calculated by the value generated from selling the software over the total expenditure during the software development process. The closed-form solution and some theoretical results are presented using the optimal control-theoretic approach. The theoretical results are supported by a numerical example.

Findings

This paper gives several substantive insights during sensitivity analysis and provides essential results. The results discussed here are compatible with the actual scenario and useful in software enhancement.

Originality/value

The authors have proposed a new feature growth and customer growth model to maximize the total profit using optimal control theory.

Details

International Journal of Quality & Reliability Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-671X

Keywords

1 – 10 of over 2000