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1 – 10 of over 14000Yan-Kwang Chen, Chih-Teng Chen, Fei-Rung Chiu and Jiunn-Woei Lian
Group buying (GB) is a shopping strategy through which customers obtain volume discounts on the products they purchase, whereas retailers obtain quick turnover. In the scenario of…
Abstract
Purpose
Group buying (GB) is a shopping strategy through which customers obtain volume discounts on the products they purchase, whereas retailers obtain quick turnover. In the scenario of GB, the optimal discount strategy is a key issue because it affects the profit of sellers. Previous research has focused on exploring the price discount and order quantity with a fixed selling price of the product assuming that customer demand is uncertain (but follows a known distribution). This study aims to look at the same problem but goes further to examine the case where not only customer demand is certain but also the demand distribution is unknown.
Design/methodology/approach
In this study, optimal price discount and order quantity of a GB problem cast as a price-setting newsvendor problem were obtained assuming that the distribution of customer demand is unknown. The price–demand relationship is considered in addition form and product form, respectively. The bootstrap sampling technique is used to develop a solution procedure for the problem. To validate the usefulness of the proposed method, a simulated comparison of the proposed model and the existing one was conducted. The effects of sample size, demand form and parameters of the demand form on the performance of the proposed model are presented and discussed.
Findings
It is revealed from the numerical results that the proposed model is appropriate to the problem at hand, and it becomes more effective as sample size increases. Because the two forms of demand indicate restrictive assumptions about the effect of price on the variance of demand, it is found that the proposed model seems to be more suitable for addition form of demand.
Originality/value
This study contributes to the growing literature on GB models by developing a bootstrap-based newsvendor model to determine an optimal discount price and order quantity for a fixed-price GB website. This model can assist the sellers in making decisions on optimal discount price and order quantity without knowing the form of customer demand distribution.
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Mohsen Sadeghi-Dastaki and Abbas Afrazeh
Human resources are one of the most important and effective elements for companies. In other words, employees are a competitive advantage. This issue is more vital in the supply…
Abstract
Purpose
Human resources are one of the most important and effective elements for companies. In other words, employees are a competitive advantage. This issue is more vital in the supply chains and production systems, because of high need for manpower in the different specification. Therefore, manpower planning is an important, essential and complex task. The purpose of this paper is to present a manpower planning model for production departments. The authors consider workforce with individual and hierarchical skills with skill substitution in the planning. Assuming workforce demand as a factor of uncertainty, a two-stage stochastic model is proposed.
Design/methodology/approach
To solve the proposed mixed-integer model in the real-world cases and large-scale problems, a Benders’ decomposition algorithm is introduced. Some test instances are solved, with scenarios generated by Monte Carlo method. For some test instances, to find the number of suitable scenarios, the authors use the sample average approximation method and to generate scenarios, the authors use Latin hypercube sampling method.
Findings
The results show a reasonable performance in terms of both quality and solution time. Finally, the paper concludes with some analysis of the results and suggestions for further research.
Originality/value
Researchers have attracted to other uncertainty factors such as costs and products demand in the literature, and have little attention to workforce demand as an uncertainty factor. Furthermore, most of the time, researchers assume that there is no difference between the education level and skill, while they are not necessarily equivalent. Hence, this paper enters these elements into decision making.
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Pankaj Dutta and Himanshu Shrivastava
This paper aims to design an optimal supply chain network and to develop a suitable distribution planning under uncertainty for perishable product's supply chain. The ultimate…
Abstract
Purpose
This paper aims to design an optimal supply chain network and to develop a suitable distribution planning under uncertainty for perishable product's supply chain. The ultimate goal is to help in making decisions under uncertain environments.
Design/methodology/approach
In this paper, stochastic programming is used under conditions of demand, supply and process uncertainties, and a non-linear mathematical model is developed for perishable product’s supply chain. Authors’ study considers disruptions in transportation routes and also within the facilities and investigates optimal facility location and shipment decisions while minimising the total supply chain cost. A scenario-based approach is used to model these disruptions. The retailer level uncertainty due to demand-supply mismatch is handled by incorporating the newsvendor model into the last echelon of supply chain network. In this paper, two policies are proposed for making decisions under uncertain environments. In the first one, the expected cost of the supply chain is minimised. To also consider the risk behaviour of the decision maker, authors propose the second policy through a conditional value-at-risk approach.
Findings
Authors discuss the model output through various examples that are provided via a case study from the milk industry. The supply chain design and planning of the disruption-free model are different from those of the resilient model.
Practical implications
Authors’ research benefits the perishable products industries which encounter the disruption problems in their transportation routes as well as in the facilities. Authors have demonstrated the research through a real-life case in a milk industry.
Originality/value
The major contribution of authors’ work is the design of the supply chain network under disruption risks by incorporating aspects of product perishability. This work provides insight into areas such as the simultaneous consideration of demand, supply and process uncertainties. The amalgamation of newsvendor model and the approximation of the non-linearity of retailer level cost function especially in the context of supply chain under uncertainty is the first of its kind. We provide a comprehensive statistical study of uncertainties that are present in the supply chain in a unique manner.
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Pravin Suryawanshi and Pankaj Dutta
The emergence of risk in today's business environment is affecting every managerial decision, majorly due to globalization, disruptions, poor infrastructure, forecasting errors…
Abstract
Purpose
The emergence of risk in today's business environment is affecting every managerial decision, majorly due to globalization, disruptions, poor infrastructure, forecasting errors and different uncertainties. The impact of such disruptive events is significantly high for perishable items due to their susceptibility toward economic loss. This paper aims to design and address an operational planning problem of a perishable food supply chain (SC).
Design/methodology/approach
The proposed model considers the simultaneous effect of disruption, random demand and deterioration of food items on business objectives under constrained conditions. The study describes this situation using a mixed-integer nonlinear program with a piecewise approximation algorithm. The proposed algorithm is easy to implement and competitive to handle stationary as well as nonstationary random variables in place of scenario techniques. The mathematical model includes a real-life case study from a kiwi fruit distribution industry.
Findings
The study quantifies the performance of SC in terms of SC cost and fill rate. Additionally, it investigates the effects of disruption due to suppliers, transport losses, product perishability and demand stochasticity. The model incorporates an incentive-based strategy to provide cost-cutting in the existing business plan considering the effect of deterioration. The study performs sensitivity analysis to show various “what-if” situations and derives implications for managerial insights.
Originality/value
The study contributes to the scant literature of quantitative modeling of food SC. The research work is original as it integrates a stochastic (uncertain) nature of SC simultaneously coupled with the effect of disruption, transport losses and product perishability. It incorporates proactive planning strategies to minimize the disruption impact and the concept of incremental quantity discounts on lot sizes at a destination node.
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Yong Peng, Yi Juan Luo, Pei Jiang and Peng Cheng Yong
Distribution of long-haul goods could be managed via multimodal transportation networks where decision-maker has to consider these factors including the uncertainty of…
Abstract
Purpose
Distribution of long-haul goods could be managed via multimodal transportation networks where decision-maker has to consider these factors including the uncertainty of transportation time and cost, the timetable limitation of selected modes and the storage cost incurred in advance or delay arriving of the goods. Considering the above factors comprehensively, this paper establishes a multimodal multi-objective route optimization model which aims to minimize total transportation duration and cost. This study could be used as a reference for decision-maker to transportation plans.
Design/methodology/approach
Monte Carlo (MC) simulation is introduced to deal with transportation uncertainty and the NSGA-II algorithm with an external archival elite retention strategy is designed. An efficient transformation method based on data-drive to overcome the high time-consuming problem brought by MC simulation. Other contribution of this study is developed a scheme risk assessment method for the non-absolutely optimal Pareto frontier solution set obtained by the NSGA-II algorithm.
Findings
Numerical examples verify the effectiveness of the proposed algorithm as it is able to find a high-quality solution and the risk assessment method proposed in this paper can provide support for the route decision.
Originality/value
The impact of timetable on transportation duration is analyzed and making a detailed description in the mathematical model. The uncertain transportation duration and cost are represented by random number that obeys a certain distribution and designed NSGA-II with MC simulation to solve the proposed problem. The data-driven strategy is adopted to reduce the computational time caused by the combination of evolutionary algorithm and MC simulation. The elite retention strategy with external archiving is created to improve the quality of solutions. A risk assessment approach is proposed for the solution scheme and in the numerical simulation experiment.
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Bo Yan, Jiwen Wu and Fengling Wang
The purpose of this paper is to establish an effective risk assessment approach based on the conditional value-at-risk (CVaR) in the agricultural supply chain.
Abstract
Purpose
The purpose of this paper is to establish an effective risk assessment approach based on the conditional value-at-risk (CVaR) in the agricultural supply chain.
Design/methodology/approach
This study analyzes and assesses the risks of breeding, processing, transportation and warehousing in the agricultural supply chain. The ordered weighted averaging operator is used to sort risk control factors according to their importance and determine the main risk indicators of an enterprise. The CVaR model is utilized to establish the risk loss function, and an improved genetic algorithm is employed to identify the optimal risk control portfolios in the case of the smallest risk loss.
Findings
Based on the approach, the optimal combination of risk control to minimize risk losses is determined. Results show that the proportion of capital investment in risk control differs at three confidence levels, and a large amount of money needs to be invested in the production process at the source. Thus, any attempt to control the risks inherent in the agricultural supply chain must begin with the production process at the source.
Originality/value
Supply chain risk management has become increasingly important and significant to the operation and production of enterprises in recent years. The proposed method to assess the risk in the agricultural supply chain can benefit managers in making smart decisions to control total risk.
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Most epidemic transmission forecasting methods can only provide deterministic outputs. This study aims to show that probabilistic forecasting, in contrast, is suitable for…
Abstract
Purpose
Most epidemic transmission forecasting methods can only provide deterministic outputs. This study aims to show that probabilistic forecasting, in contrast, is suitable for stochastic demand modeling and emergency medical resource planning under uncertainty.
Design/methodology/approach
Two probabilistic forecasting methods, i.e. quantile regression convolutional neural network and kernel density estimation, are combined to provide the conditional quantiles and conditional densities of infected populations. The value of probabilistic forecasting in improving decision performances and controlling decision risks is investigated by an empirical study on the emergency medical resource planning for the COVID-19 pandemic.
Findings
The managerial implications obtained from the empirical results include (1) the optimization models using the conditional quantile or the point forecasting result obtain better results than those using the conditional density; (2) for sufficient resources, decision-makers' risk preferences can be incorporated to make tradeoffs between the possible surpluses and shortages of resources in the emergency medical resource planning at different quantile levels; and (3) for scarce resources, the differences in emergency medical resource planning at different quantile levels greatly decrease or disappear because of the existing of forecasting errors and supply quantity constraints.
Originality/value
Very few studies concern probabilistic epidemic transmission forecasting methods, and this is the first attempt to incorporate deep learning methods into a two-phase framework for data-driven emergency medical resource planning under uncertainty. Moreover, the findings from the empirical results are valuable to select a suitable forecasting method and design an efficient emergency medical resource plan.
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Mohammad Hossein Dehghani Sadrabadi, Ahmad Makui, Rouzbeh Ghousi and Armin Jabbarzadeh
The adverse interactions between disruptions can increase the supply chain's vulnerability. Accordingly, establishing supply chain resilience to deal with disruptions and…
Abstract
Purpose
The adverse interactions between disruptions can increase the supply chain's vulnerability. Accordingly, establishing supply chain resilience to deal with disruptions and employing business continuity planning to preserve risk management achievements is of considerable importance. The aforementioned idea is discussed in this study.
Design/methodology/approach
This study proposes a multi-objective optimization model for employing business continuity management and organizational resilience in a supply chain for responding to multiple interrelated disruptions. The improved augmented e-constraint and the scenario-based robust optimization methods are adopted for multi-objective programming and dealing with uncertainty, respectively. A case study of the automotive battery manufacturing industry is also considered to ensure real-world conformity of the model.
Findings
The results indicate that interactions between disruptions remarkably increase the supply chain's vulnerability. Choosing a higher fortification level for the supply chain and foreign suppliers reduces disruption impacts on resources and improves the supply chain's resilience and business continuity. Facilities dispersion, fortification of facilities, lateral transshipment, order deferral policy, dynamic capacity planning and direct transportation of products to markets are the most efficient resilience strategies in the under-study industry.
Originality/value
Applying resource allocation planning and portfolio selection to adopt preventive and reactive resilience strategies simultaneously to manage multiple interrelated disruptions in a real-world automotive battery manufacturing industry, maintaining the long-term achievements of supply chain resilience using business continuity management and dynamic capacity planning are the main contributions of the presented paper.
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Denis Bolduc and Ricardo Alvarez-Daziano
The search for flexible models has led the simple multinomial logit model to evolve into the powerful but computationally very demanding mixed multinomial logit (MMNL) model. That…
Abstract
The search for flexible models has led the simple multinomial logit model to evolve into the powerful but computationally very demanding mixed multinomial logit (MMNL) model. That flexibility search lead to discrete choice hybrid choice models (HCMs) formulations that explicitly incorporate psychological factors affecting decision making in order to enhance the behavioral representation of the choice process. It expands on standard choice models by including attitudes, opinions, and perceptions as psychometric latent variables.
In this paper we describe the classical estimation technique for a simulated maximum likelihood (SML) solution of the HCM. To show its feasibility, we apply it to data of stated personal vehicle choices made by Canadian consumers when faced with technological innovations.
We then go beyond classical methods, and estimate the HCM using a hierarchical Bayesian approach that exploits HCM Gibbs sampling considering both a probit and a MMNL discrete choice kernel. We then carry out a Monte Carlo experiment to test how the HCM Gibbs sampler works in practice. To our knowledge, this is the first practical application of HCM Bayesian estimation.
We show that although HCM joint estimation requires the evaluation of complex multi-dimensional integrals, SML can be successfully implemented. The HCM framework not only proves to be capable of introducing latent variables, but also makes it possible to tackle the problem of measurement errors in variables in a very natural way. We also show that working with Bayesian methods has the potential to break down the complexity of classical estimation.
This paper aims to focus on applications of stochastic linear programming (SLP) to managerial accounting issues by providing a theoretical foundation and practical examples. SLP…
Abstract
Purpose
This paper aims to focus on applications of stochastic linear programming (SLP) to managerial accounting issues by providing a theoretical foundation and practical examples. SLP models may have more implications – and broader ones – in industry practice than deterministic linear programming (DLP) models do.
Design/methodology/approach
This paper introduces both DLP and SLP methods. In addition, continuous and discrete SLP models are explained. Applications are demonstrated using practical examples and simulations.
Findings
This research work extends the current knowledge of SLP, especially concerning managerial accounting issues. Through numerical examples, SLP demonstrates its great ability of hedging against all scenarios.
Originality/value
This study serves as an addition to building a cumulative tradition of research on SLP in managerial accounting. Only a few SLP studies in managerial accounting have focused on the development of such an instrument. Thus, the measurement scales in this research can be used as the starting point for further refining the instrument of optimization in managerial accounting.
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