Pub Date : 2026-05-01Epub Date: 2026-01-29DOI: 10.1016/j.ijpe.2026.109934
Pivithuru Thejan Amarasinghe , Su Nguyen , Yuan Sun , Sobhan (Sean) Arisian , Damminda Alahakoon
Digital manufacturing relies on optimization for complex, time-critical production decisions. However, the effectiveness of optimization itself hinges on accurate problem formulation, which requires specialized domain expertise and dictates both solution validity and computational tractability. Recent advances in large language models (LLMs) offer the potential to automate the problem formulation process, yet existing studies focus predominantly on synthetic benchmarks. We present a systematic, cost-efficient framework that fine-tunes LLMs to automate problem formulation for optimization in digital manufacturing. The approach integrates modularization and prompt engineering to achieve scalable and quantitatively verifiable performance in execution-based deployments within actual manufacturing environments. Experiments demonstrate success rates exceeding 95% in generating accurate, solver-ready formulations for both classic job-shop scheduling and real-world production scheduling, as verified through execution-based evaluation. On linear programming benchmarks, the method achieves an approximately 30% improvement over state-of-the-art prompt-engineering baselines, while embedding analyses confirm robustness across complex combinatorial problems. The framework enhances production efficiency by accelerating operator adaptation to complex planning tasks, reducing dependence on expert modelers, and shortening decision cycles. The cost-efficient design of the proposed framework enables its ready adoption by small and medium-sized manufacturers, making advanced optimization accessible even with limited computational resources.
{"title":"Business optimization for digital manufacturing: A fine-tuned large language model approach","authors":"Pivithuru Thejan Amarasinghe , Su Nguyen , Yuan Sun , Sobhan (Sean) Arisian , Damminda Alahakoon","doi":"10.1016/j.ijpe.2026.109934","DOIUrl":"10.1016/j.ijpe.2026.109934","url":null,"abstract":"<div><div>Digital manufacturing relies on optimization for complex, time-critical production decisions. However, the effectiveness of optimization itself hinges on accurate problem formulation, which requires specialized domain expertise and dictates both solution validity and computational tractability. Recent advances in large language models (LLMs) offer the potential to automate the problem formulation process, yet existing studies focus predominantly on synthetic benchmarks. We present a systematic, cost-efficient framework that fine-tunes LLMs to automate problem formulation for optimization in digital manufacturing. The approach integrates modularization and prompt engineering to achieve scalable and quantitatively verifiable performance in execution-based deployments within actual manufacturing environments. Experiments demonstrate success rates exceeding 95% in generating accurate, solver-ready formulations for both classic job-shop scheduling and real-world production scheduling, as verified through execution-based evaluation. On linear programming benchmarks, the method achieves an approximately 30% improvement over state-of-the-art prompt-engineering baselines, while embedding analyses confirm robustness across complex combinatorial problems. The framework enhances production efficiency by accelerating operator adaptation to complex planning tasks, reducing dependence on expert modelers, and shortening decision cycles. The cost-efficient design of the proposed framework enables its ready adoption by small and medium-sized manufacturers, making advanced optimization accessible even with limited computational resources.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"295 ","pages":"Article 109934"},"PeriodicalIF":10.0,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146171259","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-05-01Epub Date: 2026-01-29DOI: 10.1016/j.ijpe.2026.109949
Chaima Zormati, Tarik Chargui, Abdelghani Bekrar, Abdessamad Ait El Cadi
Circular economy principles are increasingly central to sustainable supply chain management, as they foster closed-loop systems that reduce waste, extend product lifecycles, and promote resource efficiency. In particular, they have strong implications for the social dimension, since reverse logistics and reuse systems directly influence working conditions. Optimizing transport operations is crucial for minimizing environmental impact, reduce operational costs and enhance social outcomes such as operator well-being. This paper addresses the Inventory Routing Problem with Pickup and Delivery with time window (IRP-PD-TW) in the context of pallet logistics, focusing on the distribution of loaded pallets and the collection of empty ones. The problem we tackle lies in the lack of integrated optimization approaches that jointly consider economic, environmental, and social criteria within this context. To address this gap, we propose a multi-objective Mixed Integer Linear Programming (MILP) model designed to optimize multiple objectives: minimizing total costs, reducing CO emissions by accounting for both load and distance factors, and improving driver welfare. The model is implemented and solved using Gurobi, with validation conducted on literature instances. Additionally, the problem is tackled using two metaheuristic approaches, namely NSGA-II and SPEA2, which leverage Pareto optimization to explore trade-offs among the objectives. The results demonstrate the effectiveness of both methods in achieving balanced optimization of economic, environmental, and social objectives, thus offering a comprehensive approach to sustainable supply chain.
{"title":"The sustainable reverse inventory-routing problem with time windows and simultaneous pickup and delivery","authors":"Chaima Zormati, Tarik Chargui, Abdelghani Bekrar, Abdessamad Ait El Cadi","doi":"10.1016/j.ijpe.2026.109949","DOIUrl":"10.1016/j.ijpe.2026.109949","url":null,"abstract":"<div><div>Circular economy principles are increasingly central to sustainable supply chain management, as they foster closed-loop systems that reduce waste, extend product lifecycles, and promote resource efficiency. In particular, they have strong implications for the social dimension, since reverse logistics and reuse systems directly influence working conditions. Optimizing transport operations is crucial for minimizing environmental impact, reduce operational costs and enhance social outcomes such as operator well-being. This paper addresses the Inventory Routing Problem with Pickup and Delivery with time window (IRP-PD-TW) in the context of pallet logistics, focusing on the distribution of loaded pallets and the collection of empty ones. The problem we tackle lies in the lack of integrated optimization approaches that jointly consider economic, environmental, and social criteria within this context. To address this gap, we propose a multi-objective Mixed Integer Linear Programming (MILP) model designed to optimize multiple objectives: minimizing total costs, reducing CO<span><math><msub><mrow></mrow><mrow><mn>2</mn></mrow></msub></math></span> emissions by accounting for both load and distance factors, and improving driver welfare. The model is implemented and solved using Gurobi, with validation conducted on literature instances. Additionally, the problem is tackled using two metaheuristic approaches, namely NSGA-II and SPEA2, which leverage Pareto optimization to explore trade-offs among the objectives. The results demonstrate the effectiveness of both methods in achieving balanced optimization of economic, environmental, and social objectives, thus offering a comprehensive approach to sustainable supply chain.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"295 ","pages":"Article 109949"},"PeriodicalIF":10.0,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146171260","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-05-01Epub Date: 2026-01-24DOI: 10.1016/j.ijpe.2026.109938
Huiling Song , Xinwei Dong , Mingwu Liu , Bo Xiang , Qinxia Chen
Estimated import charges significantly influence consumer behavior toward imported products, creating a strategic dilemma for cross-border e-commerce platforms (e-platforms). Adopting a tax-exclusive strategy (E) helps control costs but risks losing consumers who are sensitive to additional import charges. In contrast, although a tax-inclusive strategy (I) enhances consumers' willingness to purchase, it also increases the import charge burden on e-platforms. To examine this trade-off, we develop a stylized cross-border e-commerce supply chain model consisting of a foreign brand owner and two asymmetric e-platforms, where e-platform A has a higher demand potential than e-platform B. Four strategy profiles arise from the e-platforms’ strategic choices: EE, EI, IE, and II. The results indicate that when an e-platform adopts the tax-inclusive strategy, its retail price rises, with the increase reflecting all or part of the import charges. Moreover, e-platform B with a lower demand potential has a stronger incentive to adopt the tax-inclusive strategy. We also derive sufficient conditions under which the Nash equilibria of the tax-inclusive strategy game correspond to EE, EI, and II, while IE cannot emerge as a Nash equilibrium. Furthermore, we identify conflict regions where the e-platforms’ Nash equilibria misalign with the brand owner's preferred outcomes. To address the misalignments arising from the coexistence of EE and II equilibria, we propose an equilibrium selection mechanism that incorporates transfer payments and subsidy incentives. This mechanism achieves a “win–win–win” outcome for the brand owner and both e-platforms.
{"title":"Is it wise for cross-border e-commerce platforms to bear estimated imported charges on behalf of consumers?","authors":"Huiling Song , Xinwei Dong , Mingwu Liu , Bo Xiang , Qinxia Chen","doi":"10.1016/j.ijpe.2026.109938","DOIUrl":"10.1016/j.ijpe.2026.109938","url":null,"abstract":"<div><div>Estimated import charges significantly influence consumer behavior toward imported products, creating a strategic dilemma for cross-border e-commerce platforms (e-platforms). Adopting a tax-exclusive strategy (E) helps control costs but risks losing consumers who are sensitive to additional import charges. In contrast, although a tax-inclusive strategy (I) enhances consumers' willingness to purchase, it also increases the import charge burden on e-platforms. To examine this trade-off, we develop a stylized cross-border e-commerce supply chain model consisting of a foreign brand owner and two asymmetric e-platforms, where e-platform A has a higher demand potential than e-platform B. Four strategy profiles arise from the e-platforms’ strategic choices: EE, EI, IE, and II. The results indicate that when an e-platform adopts the tax-inclusive strategy, its retail price rises, with the increase reflecting all or part of the import charges. Moreover, e-platform B with a lower demand potential has a stronger incentive to adopt the tax-inclusive strategy. We also derive sufficient conditions under which the Nash equilibria of the tax-inclusive strategy game correspond to EE, EI, and II, while IE cannot emerge as a Nash equilibrium. Furthermore, we identify conflict regions where the e-platforms’ Nash equilibria misalign with the brand owner's preferred outcomes. To address the misalignments arising from the coexistence of EE and II equilibria, we propose an equilibrium selection mechanism that incorporates transfer payments and subsidy incentives. This mechanism achieves a “win–win–win” outcome for the brand owner and both e-platforms.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"295 ","pages":"Article 109938"},"PeriodicalIF":10.0,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146049142","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2025-12-09DOI: 10.1016/j.ijpe.2025.109884
Ershen Zhang , Guoen Wang , Pengliang Hu , Yajuan Zhou
Under the impetus of digitalization and globalization, the new retail model is profoundly reshaping the construction and operation of traditional supply and sales networks. Although existing research has examined either the production or the sales aspects of the retail industry, it still falls short in its analysis of the spatial dynamics and the underlying drivers of the integrated production-sales supply chain. In response to this gap, this study draws on a time-series dataset covering the period from 2019 to 2024 to investigate the spatiotemporal evolution of the supply chain networks of China's leading new retail enterprise, Freshippo, in emerging markets. Furthermore, it aims to uncover transformations in both the structural configurations and the evolutionary mechanisms of these networks. We employ Geographical detectors and Pearson correlation analysis to analyze the factors influencing the formation of supply chain networks. The research results indicate that, through precise layout and collaborative efforts at both the production and sales sides, the supply chain of the new retail network has significantly improved in terms of quantity, scope, and efficiency. Moreover, the network formation model has expanded from local to regional and cross-regional scales, forming a multi-level, highly collaborative supply and sales system. Considering the impact of the pandemic, the expansion strategy of the supply chain network experienced rapid growth fueled by “contactless consumption” during the pandemic, shifting toward more refined management after the lifting of lockdowns. In addition, the intensity of network formation is significantly influenced by market consumption power, logistics and transportation capacity, and the digital environment, while agricultural production capacity and the natural environment exert significant inhibitory effects. Furthermore, both single-factor and multi-factor interactions have significant impacts on the spatial heterogeneity of network formation intensity. Within the integrated framework of location theory, diffusion theory, and platform governance, the research findings expand the theoretical boundaries of the evolution of new retail supply chains and provide both theoretical guidance and practical insights for analyzing their spatial organization and governance mechanisms.
{"title":"Spatial evolution and influencing factors of new retail supply chain networks: Freshippo case study","authors":"Ershen Zhang , Guoen Wang , Pengliang Hu , Yajuan Zhou","doi":"10.1016/j.ijpe.2025.109884","DOIUrl":"10.1016/j.ijpe.2025.109884","url":null,"abstract":"<div><div>Under the impetus of digitalization and globalization, the new retail model is profoundly reshaping the construction and operation of traditional supply and sales networks. Although existing research has examined either the production or the sales aspects of the retail industry, it still falls short in its analysis of the spatial dynamics and the underlying drivers of the integrated production-sales supply chain. In response to this gap, this study draws on a time-series dataset covering the period from 2019 to 2024 to investigate the spatiotemporal evolution of the supply chain networks of China's leading new retail enterprise, Freshippo, in emerging markets. Furthermore, it aims to uncover transformations in both the structural configurations and the evolutionary mechanisms of these networks. We employ Geographical detectors and Pearson correlation analysis to analyze the factors influencing the formation of supply chain networks. The research results indicate that, through precise layout and collaborative efforts at both the production and sales sides, the supply chain of the new retail network has significantly improved in terms of quantity, scope, and efficiency. Moreover, the network formation model has expanded from local to regional and cross-regional scales, forming a multi-level, highly collaborative supply and sales system. Considering the impact of the pandemic, the expansion strategy of the supply chain network experienced rapid growth fueled by “contactless consumption” during the pandemic, shifting toward more refined management after the lifting of lockdowns. In addition, the intensity of network formation is significantly influenced by market consumption power, logistics and transportation capacity, and the digital environment, while agricultural production capacity and the natural environment exert significant inhibitory effects. Furthermore, both single-factor and multi-factor interactions have significant impacts on the spatial heterogeneity of network formation intensity. Within the integrated framework of location theory, diffusion theory, and platform governance, the research findings expand the theoretical boundaries of the evolution of new retail supply chains and provide both theoretical guidance and practical insights for analyzing their spatial organization and governance mechanisms.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"294 ","pages":"Article 109884"},"PeriodicalIF":10.0,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145760864","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2025-12-13DOI: 10.1016/j.ijpe.2025.109894
Seyed Sina Mohri , Hadi Ghaderi , Reza Zanjirani Farahani , Neema Nassir , Russell G. Thompson
On-premises parcel lockers (OPLs) have recently garnered attention as a convenient, safe, and secure parcel delivery solution in urban areas. Companies like Amazon Hub, GroundFloor, and My Parcel Locker have adopted basic Service Revenue Models (SRMs), providing OPLs in buildings under different contract arrangements, such as subscription models and annual partnership fees. However, high capital and ongoing costs impede the adoption of OPLs in small buildings. This study aims to develop advanced decision models for the revenue management of on-premises parcel lockers by developing extensions to the basic SRM. The extensions function by incorporating the concept of carriers paying a service fee and buildings receiving services through partnership agreements. Two distinct partnership scenarios are evaluated: (i) a building hosts the OPL while serving neighbouring buildings, and (ii) collaboration with the local government, where authorities establish shared OPLs in public space near designated buildings, promoting sustainable urban delivery. Alternative SRMs are formulated using novel optimisation techniques, and equilibrium points are identified and analytically evaluated to determine optimal service fees and contract durations. Using real-life data from Melbourne, this study compares the performance of these models under different scenarios. Using real-life data from Melbourne, this study compares the performance of the proposed models under various scenarios. While partnerships involving shared public OPLs supported by local governments remain the most cost-effective overall, incorporating modest land costs slightly reduces their advantage, though they continue to offer the most feasible and widely accepted solution.
{"title":"Decision models for on-premises parcel lockers service revenue management","authors":"Seyed Sina Mohri , Hadi Ghaderi , Reza Zanjirani Farahani , Neema Nassir , Russell G. Thompson","doi":"10.1016/j.ijpe.2025.109894","DOIUrl":"10.1016/j.ijpe.2025.109894","url":null,"abstract":"<div><div>On-premises parcel lockers (OPLs) have recently garnered attention as a convenient, safe, and secure parcel delivery solution in urban areas. Companies like Amazon Hub, GroundFloor, and My Parcel Locker have adopted basic Service Revenue Models (SRMs), providing OPLs in buildings under different contract arrangements, such as subscription models and annual partnership fees. However, high capital and ongoing costs impede the adoption of OPLs in small buildings. This study aims to develop advanced decision models for the revenue management of on-premises parcel lockers by developing extensions to the basic SRM. The extensions function by incorporating the concept of carriers paying a service fee and buildings receiving services through partnership agreements. Two distinct partnership scenarios are evaluated: (i) a building hosts the OPL while serving neighbouring buildings, and (ii) collaboration with the local government, where authorities establish shared OPLs in public space near designated buildings, promoting sustainable urban delivery. Alternative SRMs are formulated using novel optimisation techniques, and equilibrium points are identified and analytically evaluated to determine optimal service fees and contract durations. Using real-life data from Melbourne, this study compares the performance of these models under different scenarios. Using real-life data from Melbourne, this study compares the performance of the proposed models under various scenarios. While partnerships involving shared public OPLs supported by local governments remain the most cost-effective overall, incorporating modest land costs slightly reduces their advantage, though they continue to offer the most feasible and widely accepted solution.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"294 ","pages":"Article 109894"},"PeriodicalIF":10.0,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145789538","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2025-12-08DOI: 10.1016/j.ijpe.2025.109880
Behzad Masoomi, Maryam Radman, Majid Rafiee
Humanitarian Supply Chains (HSCs) face numerous challenges, including uncertainty, high dynamics, and resource constraints. The ongoing development of Artificial Intelligence (AI) offers a promising avenue to transform SC processes and enhance HSC performance. This study examines the impact of Artificial Intelligence Facilitators (AIFs) on key performance metrics (PMs) within the Supply Chain Operations Reference (SCOR) model in HSCs. Using Fuzzy Cognitive Maps (FCMs), we model the causal relationships between 13 AIFs and five SCOR indicators, incorporating expert knowledge under conditions of vagueness and hesitation. The Net Influence analysis identified predictive analytics (AIF1) as having the highest causal impact on aid management (SCOR5), with a score of 0.739. Other significant influences included population monitoring (AIF9) on reliability (SCOR1) at 0.724, and drones (AIF10) on aid management (SCOR5) at 0.706. Moderate impacts were observed from logistics optimization (AIF5) on agility (SCOR3) at 0.702, and resource allocation (AIF6) on accountability (SCOR2) and costs (SCOR4) at 0.682 and 0.663, respectively. To assess model robustness, five sensitivity scenarios were simulated using the Active Hebbian Learning (AHL) algorithm. A 10 % increase in causal strength (Scenario 1) resulted in notable improvements in agility and aid efficiency, while a 30 % increase in hesitation (Scenario 4) revealed vulnerabilities in population monitoring and needs assessment due to rising uncertainty. A key contribution of this research is developing a strategic roadmap that visually integrates high-impact AI enablers with SCOR PMs across three hierarchical levels, providing policymakers a data-driven framework for prioritizing AI implementation based on influence assessments and scenario insights.
{"title":"Unfolding AI’s strategic role in humanitarian supply chains: A fuzzy cognitive model aligned with SCOR-oriented performance and policy roadmapping","authors":"Behzad Masoomi, Maryam Radman, Majid Rafiee","doi":"10.1016/j.ijpe.2025.109880","DOIUrl":"10.1016/j.ijpe.2025.109880","url":null,"abstract":"<div><div>Humanitarian Supply Chains (HSCs) face numerous challenges, including uncertainty, high dynamics, and resource constraints. The ongoing development of Artificial Intelligence (AI) offers a promising avenue to transform SC processes and enhance HSC performance. This study examines the impact of Artificial Intelligence Facilitators (AIFs) on key performance metrics (PMs) within the Supply Chain Operations Reference (SCOR) model in HSCs. Using Fuzzy Cognitive Maps (FCMs), we model the causal relationships between 13 AIFs and five SCOR indicators, incorporating expert knowledge under conditions of vagueness and hesitation. The Net Influence analysis identified predictive analytics (AIF1) as having the highest causal impact on aid management (SCOR5), with a score of 0.739. Other significant influences included population monitoring (AIF9) on reliability (SCOR1) at 0.724, and drones (AIF10) on aid management (SCOR5) at 0.706. Moderate impacts were observed from logistics optimization (AIF5) on agility (SCOR3) at 0.702, and resource allocation (AIF6) on accountability (SCOR2) and costs (SCOR4) at 0.682 and 0.663, respectively. To assess model robustness, five sensitivity scenarios were simulated using the Active Hebbian Learning (AHL) algorithm. A 10 % increase in causal strength (Scenario 1) resulted in notable improvements in agility and aid efficiency, while a 30 % increase in hesitation (Scenario 4) revealed vulnerabilities in population monitoring and needs assessment due to rising uncertainty. A key contribution of this research is developing a strategic roadmap that visually integrates high-impact AI enablers with SCOR PMs across three hierarchical levels, providing policymakers a data-driven framework for prioritizing AI implementation based on influence assessments and scenario insights.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"294 ","pages":"Article 109880"},"PeriodicalIF":10.0,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145838514","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2025-12-12DOI: 10.1016/j.ijpe.2025.109892
Tingting Wang , Shan Chang , Guoping Hu , Victor Shi
Blockchain technology has emerged as a transformative tool to enhance supply chain traceability, a critical concern in today’s business environment. This study develops game-theoretic models to analyze the interplay between supply chain structure and blockchain deployment strategies in competing supply chains. Our results show that vertical integration generally benefits a decentralized supply chain but can harm the competitor under most blockchain deployment strategies. In particular, when both competing supply chains deploy blockchain, they tend to adopt vertical integration. However, when only one decentralized chain deploys blockchain, its adoption of vertical integration may reduce profits for itself and its competitor, highlighting the strategic complexity of partial adoption. We further identify the equilibrium blockchain deployment strategies under different supply chain structures and demonstrate that these strategies depend on customer privacy concerns. We also show that both supply chains adopt vertical integration and blockchain when privacy concerns are low. However, they adopt vertical integration without blockchain when privacy concerns are high. Under moderate privacy concerns, blockchain adoption depends on the level of integration, with higher integration promoting its deployment. Finally, we find that vertical integration improves social welfare more effectively when both chains deploy blockchain. It also has a positive effect when only a single centralized chain deploys blockchain and privacy concerns are low. Overall, our findings provide valuable managerial insights for decision-makers when considering blockchain adoption in competitive settings, highlighting the critical role of supply chain structure and consumer privacy concerns.
{"title":"Supply chain structure and blockchain deployment strategies in competing supply chains","authors":"Tingting Wang , Shan Chang , Guoping Hu , Victor Shi","doi":"10.1016/j.ijpe.2025.109892","DOIUrl":"10.1016/j.ijpe.2025.109892","url":null,"abstract":"<div><div>Blockchain technology has emerged as a transformative tool to enhance supply chain traceability, a critical concern in today’s business environment. This study develops game-theoretic models to analyze the interplay between supply chain structure and blockchain deployment strategies in competing supply chains. Our results show that vertical integration generally benefits a decentralized supply chain but can harm the competitor under most blockchain deployment strategies. In particular, when both competing supply chains deploy blockchain, they tend to adopt vertical integration. However, when only one decentralized chain deploys blockchain, its adoption of vertical integration may reduce profits for itself and its competitor, highlighting the strategic complexity of partial adoption. We further identify the equilibrium blockchain deployment strategies under different supply chain structures and demonstrate that these strategies depend on customer privacy concerns. We also show that both supply chains adopt vertical integration and blockchain when privacy concerns are low. However, they adopt vertical integration without blockchain when privacy concerns are high. Under moderate privacy concerns, blockchain adoption depends on the level of integration, with higher integration promoting its deployment. Finally, we find that vertical integration improves social welfare more effectively when both chains deploy blockchain. It also has a positive effect when only a single centralized chain deploys blockchain and privacy concerns are low. Overall, our findings provide valuable managerial insights for decision-makers when considering blockchain adoption in competitive settings, highlighting the critical role of supply chain structure and consumer privacy concerns.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"294 ","pages":"Article 109892"},"PeriodicalIF":10.0,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145789467","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2026-01-23DOI: 10.1016/j.ijpe.2026.109936
Ning Li
This paper studies the effect of buy-online-and-pick-up-in-store (BOPS) implementation for an omnichannel retailer providing online and offline channels, where product price and free-shipping threshold are decision variables. Especially, for the online channel, the retailer employs a contingent free shipping (CFS) policy. Based on the different characteristics of purchasing channels, we first construct the utility functions of purchasing channels and then employ the principle of maximum utility to obtain demand functions. Further, we develop optimization problem models with and without BOPS channels to study the effect of BOPS. Then, based on the original problem, we consider two extension models (i.e., the difficulty of finding suitable add-on product and the market competition). Finally, we conduct some numerical experiments to obtain some managerial insights about the BOPS implementation. Our results show that the BOPS implementation can increase the total demand. However, the BOPS channel is beneficial for omnichannel retailers only under the small BOPS hassle cost and the lower BOPS operation cost. Besides, when the CFS policy has less attractiveness to online customers, the BOPS implementation is more beneficial to omnichannel retailers.
{"title":"Effect of BOPS implementation for omnichannel retailing with contingent free shipping policy","authors":"Ning Li","doi":"10.1016/j.ijpe.2026.109936","DOIUrl":"10.1016/j.ijpe.2026.109936","url":null,"abstract":"<div><div>This paper studies the effect of buy-online-and-pick-up-in-store (BOPS) implementation for an omnichannel retailer providing online and offline channels, where product price and free-shipping threshold are decision variables. Especially, for the online channel, the retailer employs a contingent free shipping (CFS) policy. Based on the different characteristics of purchasing channels, we first construct the utility functions of purchasing channels and then employ the principle of maximum utility to obtain demand functions. Further, we develop optimization problem models with and without BOPS channels to study the effect of BOPS. Then, based on the original problem, we consider two extension models (i.e., the difficulty of finding suitable add-on product and the market competition). Finally, we conduct some numerical experiments to obtain some managerial insights about the BOPS implementation. Our results show that the BOPS implementation can increase the total demand. However, the BOPS channel is beneficial for omnichannel retailers only under the small BOPS hassle cost and the lower BOPS operation cost. Besides, when the CFS policy has less attractiveness to online customers, the BOPS implementation is more beneficial to omnichannel retailers.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"294 ","pages":"Article 109936"},"PeriodicalIF":10.0,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146074133","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2026-01-21DOI: 10.1016/j.ijpe.2026.109935
Haijiao Li , Ye Yao , Guoqing Zhang
Distrust in product quality increases customers’ perceived risk and the likelihood of product returns. Lenient return policies and blockchain technology (BCT) are two key strategies for mitigating this distrust. However, the strategies incur high implementation costs. Therefore, making strategy decisions on return policy and BCT adoption is crucial for optimizing supply chain performance. This study develops analytical supply chain models involving a manufacturer and an online retailer, where the manufacturer decides whether to adopt BCT, and the retailer selects between a no-return policy and a money-back guarantee (MBG). Consequently, four cases are explored in this study. We derive the optimal decisions and corresponding profits for each case and find that customer trust in product quality increases the profits when BCT is adopted. Comparing these cases, the results suggest that the no-return policy and the MBG may incentivize the manufacturer to adopt BCT because BCT enhances product quality transparency and strengthens supply chain trust. Furthermore, the combination of BCT adoption and an MBG is optimal strategy when the quality cost coefficient is low and the net return value is positive, as the strategy simultaneously enhances customer trust and reduces the risks and costs associated with returns. Conversely, when the quality cost coefficient is high and the net return value is negative, the optimal strategy shifts to no BCT adoption and a no-return policy. Additionally, several extensions are discussed to check the robustness of the findings.
{"title":"Return policy selection and blockchain technology adoption decision in a supply chain with quality information disclosure","authors":"Haijiao Li , Ye Yao , Guoqing Zhang","doi":"10.1016/j.ijpe.2026.109935","DOIUrl":"10.1016/j.ijpe.2026.109935","url":null,"abstract":"<div><div>Distrust in product quality increases customers’ perceived risk and the likelihood of product returns. Lenient return policies and blockchain technology (BCT) are two key strategies for mitigating this distrust. However, the strategies incur high implementation costs. Therefore, making strategy decisions on return policy and BCT adoption is crucial for optimizing supply chain performance. This study develops analytical supply chain models involving a manufacturer and an online retailer, where the manufacturer decides whether to adopt BCT, and the retailer selects between a no-return policy and a money-back guarantee (MBG). Consequently, four cases are explored in this study. We derive the optimal decisions and corresponding profits for each case and find that customer trust in product quality increases the profits when BCT is adopted. Comparing these cases, the results suggest that the no-return policy and the MBG may incentivize the manufacturer to adopt BCT because BCT enhances product quality transparency and strengthens supply chain trust. Furthermore, the combination of BCT adoption and an MBG is optimal strategy when the quality cost coefficient is low and the net return value is positive, as the strategy simultaneously enhances customer trust and reduces the risks and costs associated with returns. Conversely, when the quality cost coefficient is high and the net return value is negative, the optimal strategy shifts to no BCT adoption and a no-return policy. Additionally, several extensions are discussed to check the robustness of the findings.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"294 ","pages":"Article 109935"},"PeriodicalIF":10.0,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146074134","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2025-12-16DOI: 10.1016/j.ijpe.2025.109899
Yinan Qi, Fei Liu
Amid the escalation of geopolitical tensions, economic turbulence, and global supply disruptions, financialization has emerged as an increasingly pivotal way to shape firm resilience. Previous research has predominantly concentrated on the risks associated with financialization at the individual firm level. This study explores the mechanisms through which financialization impacts firm resilience, both directly and via supply chain dynamics. Drawing on a comprehensive panel of dyadic (buyer-supplier) quarterly data from Chinese listed companies from 2016 to 2023, we discover that the financialization of the buyer (the focal firm of this study) significantly erodes its resilience. Moreover, buyer financialization has a spillover effect that induces supplier financialization, and in turn, supplier financialization undermines the resilience of the buyer. Further analysis reveals that supply chain relationship duration weakens the positive effect of buyer financialization on supplier financialization and alleviates the negative impact of supplier financialization on buyer firm resilience. This research contributes substantially to the literature on financialization, supply chain spillover, and firm resilience by revealing the interfirm dynamics that shape resilience outcomes. It also offers practical implications for managers seeking to balance financial investment strategies with supply chain stability under conditions of global uncertainty.
{"title":"The impact of financialization on firm resilience: A supply chain perspective","authors":"Yinan Qi, Fei Liu","doi":"10.1016/j.ijpe.2025.109899","DOIUrl":"10.1016/j.ijpe.2025.109899","url":null,"abstract":"<div><div>Amid the escalation of geopolitical tensions, economic turbulence, and global supply disruptions, financialization has emerged as an increasingly pivotal way to shape firm resilience. Previous research has predominantly concentrated on the risks associated with financialization at the individual firm level. This study explores the mechanisms through which financialization impacts firm resilience, both directly and via supply chain dynamics. Drawing on a comprehensive panel of dyadic (buyer-supplier) quarterly data from Chinese listed companies from 2016 to 2023, we discover that the financialization of the buyer (the focal firm of this study) significantly erodes its resilience. Moreover, buyer financialization has a spillover effect that induces supplier financialization, and in turn, supplier financialization undermines the resilience of the buyer. Further analysis reveals that supply chain relationship duration weakens the positive effect of buyer financialization on supplier financialization and alleviates the negative impact of supplier financialization on buyer firm resilience. This research contributes substantially to the literature on financialization, supply chain spillover, and firm resilience by revealing the interfirm dynamics that shape resilience outcomes. It also offers practical implications for managers seeking to balance financial investment strategies with supply chain stability under conditions of global uncertainty.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"294 ","pages":"Article 109899"},"PeriodicalIF":10.0,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145789468","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}