Pub Date : 2026-03-01Epub Date: 2025-12-16DOI: 10.1016/j.ijpe.2025.109900
Zhiyang Shen , Ge Bai , Tomas Baležentis , Bin Zhang
The by-production (BP) model proposed by Murty et al. (2012) distinguishes between inputs that induce generation of the undesirable outputs (such inputs can include energy consumption) and those that do not contribute to generation of undesirable outputs (such inputs can include capital or labor). The BP model uses economic and environmental frontiers to approximate the production process and is considered to respect the materials balance principle. As the inputs contributing to generation of the undesirable outputs exhibit different roles (inequalities) across the two sub-technologies, construction of the input distance functions for construction of the productivity measures becomes cumbersome. To address this issue, the paper proposes a revision of the BP model where (i) the link between the two sub-technologies is improved and (ii) the role of the inputs that contribute to generation of the undesirable outputs is clarified. The revised model is fully compatible with popular productivity indices that incorporate input distance functions, such as the Luenberger-Hicks-Moorsteen indicator, making it practically applicable for assessing green productivity change. The empirical example of the energy-economy-environment nexus in the OECD countries is considered. The non-parametric environmental production technologies and productivity measures are compared based on the empirical example. The findings reveal substantial differences among the various methods and suggest that the proposed approach may serve as a viable alternative to existing approaches.
{"title":"A revisited by-production technology for energy-carbon emission nexus in the OECD countries: Measuring the green productivity gains under alternative input specifications","authors":"Zhiyang Shen , Ge Bai , Tomas Baležentis , Bin Zhang","doi":"10.1016/j.ijpe.2025.109900","DOIUrl":"10.1016/j.ijpe.2025.109900","url":null,"abstract":"<div><div>The by-production (BP) model proposed by Murty et al. (2012) distinguishes between inputs that induce generation of the undesirable outputs (such inputs can include energy consumption) and those that do not contribute to generation of undesirable outputs (such inputs can include capital or labor). The BP model uses economic and environmental frontiers to approximate the production process and is considered to respect the materials balance principle. As the inputs contributing to generation of the undesirable outputs exhibit different roles (inequalities) across the two sub-technologies, construction of the input distance functions for construction of the productivity measures becomes cumbersome. To address this issue, the paper proposes a revision of the BP model where (i) the link between the two sub-technologies is improved and (ii) the role of the inputs that contribute to generation of the undesirable outputs is clarified. The revised model is fully compatible with popular productivity indices that incorporate input distance functions, such as the Luenberger-Hicks-Moorsteen indicator, making it practically applicable for assessing green productivity change. The empirical example of the energy-economy-environment nexus in the OECD countries is considered. The non-parametric environmental production technologies and productivity measures are compared based on the empirical example. The findings reveal substantial differences among the various methods and suggest that the proposed approach may serve as a viable alternative to existing approaches.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"293 ","pages":"Article 109900"},"PeriodicalIF":10.0,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146170180","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}
To address the growing need for recycling retired electric vehicle (EV) batteries, it is crucial to design a sustainable closed-loop supply chain (CLSC). Meanwhile, the EV battery SC remains vulnerable in today's volatile environment, highlighting the need for resilient designs to mitigate risks. Thus, this study contributes to develop a progressive three-tier modeling framework that evolves from a deterministic “risk-free” model to a stochastic “risk-inclusive” model, and ultimately to a resilient “risk-responsive” model. The model promotes industrial sustainability across economic, environmental, and social dimensions, and introduces five sector-specific resilience strategies to mitigate risks. A scenario-based two-stage stochastic programming approach is employed to address uncertainties in supply, demand, and recycling. The model's effectiveness is validated through a real-world case study of CATL, the world's largest EV battery manufacturer. Results show that the CLSC significantly enhances sustainability compared to one-way SCs. The resilient model improves resilience and reduces costs relative to non-resilient alternatives. The bi-objective model, balancing resilience enhancement and cost reduction, achieves substantial resilience gains with minimal cost increases. The study further demonstrates that comprehensive strategies are more effective than single-focused ones in cost control and resilience enhancement, and that optimal resilience strategies vary significantly with risk types and intensities. Finally, managerial and policy insights are provided based on the findings of the case study and sensitivity analysis.
{"title":"A two-stage stochastic model for sustainable and resilient closed-loop supply chain of electric vehicle batteries","authors":"Danting Yang, Fei Ma, Haonan He, Yanni Long, Lujin Jia, Wenjun Liu","doi":"10.1016/j.ijpe.2025.109878","DOIUrl":"10.1016/j.ijpe.2025.109878","url":null,"abstract":"<div><div>To address the growing need for recycling retired electric vehicle (EV) batteries, it is crucial to design a sustainable closed-loop supply chain (CLSC). Meanwhile, the EV battery SC remains vulnerable in today's volatile environment, highlighting the need for resilient designs to mitigate risks. Thus, this study contributes to develop a progressive three-tier modeling framework that evolves from a deterministic “risk-free” model to a stochastic “risk-inclusive” model, and ultimately to a resilient “risk-responsive” model. The model promotes industrial sustainability across economic, environmental, and social dimensions, and introduces five sector-specific resilience strategies to mitigate risks. A scenario-based two-stage stochastic programming approach is employed to address uncertainties in supply, demand, and recycling. The model's effectiveness is validated through a real-world case study of CATL, the world's largest EV battery manufacturer. Results show that the CLSC significantly enhances sustainability compared to one-way SCs. The resilient model improves resilience and reduces costs relative to non-resilient alternatives. The bi-objective model, balancing resilience enhancement and cost reduction, achieves substantial resilience gains with minimal cost increases. The study further demonstrates that comprehensive strategies are more effective than single-focused ones in cost control and resilience enhancement, and that optimal resilience strategies vary significantly with risk types and intensities. Finally, managerial and policy insights are provided based on the findings of the case study and sensitivity analysis.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"293 ","pages":"Article 109878"},"PeriodicalIF":10.0,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146170175","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 : 2026-03-01Epub Date: 2025-12-30DOI: 10.1016/j.ijpe.2025.109902
Gregor Blossey , Gerd J. Hahn , Achim Koberstein
Pharmaceutical supply chains have become increasingly fragmented and rigid, which severely impairs their ability to manage uncertainties. A symptom of this development is the growing number of drug shortages including serious implications for patient care. Against this backdrop, this article explores the use of postponement and various types of flexibilities as means to improve the management of uncertainties and, thus, to avert drug shortages. A stochastic multi-stage MILP model is developed to determine the optimal network design of a multi-tier pharmaceutical supply chain under uncertain demands. Extensive numerical studies based on a case from a global pharmaceutical company are conducted in which the impact of two uncertainty dimensions, i.e. the degree of uncertainty and the degree of anticipation, is studied. We identify four distinct network design strategies, named postponement, decentralization, redundancy, and chaining, which are driven by these dimensions. While each strategy is cost-optimal under specific circumstances, they all outperform the industry standard network design. Moreover, we find that the optimal flexibility placement in these strategies mirrors the so-called chaining guidelines proposed in the literature. Overall, this work offers a rare integrated perspective on postponement and flexibility with valuable insights for theory and practice.
{"title":"Preventing drug shortages through improved demand fulfillment: The untapped potential of postponement and flexibility","authors":"Gregor Blossey , Gerd J. Hahn , Achim Koberstein","doi":"10.1016/j.ijpe.2025.109902","DOIUrl":"10.1016/j.ijpe.2025.109902","url":null,"abstract":"<div><div>Pharmaceutical supply chains have become increasingly fragmented and rigid, which severely impairs their ability to manage uncertainties. A symptom of this development is the growing number of drug shortages including serious implications for patient care. Against this backdrop, this article explores the use of postponement and various types of flexibilities as means to improve the management of uncertainties and, thus, to avert drug shortages. A stochastic multi-stage MILP model is developed to determine the optimal network design of a multi-tier pharmaceutical supply chain under uncertain demands. Extensive numerical studies based on a case from a global pharmaceutical company are conducted in which the impact of two uncertainty dimensions, i.e. the degree of uncertainty and the degree of anticipation, is studied. We identify four distinct network design strategies, named <em>postponement</em>, <em>decentralization</em>, <em>redundancy</em>, and <em>chaining</em>, which are driven by these dimensions. While each strategy is cost-optimal under specific circumstances, they all outperform the industry standard network design. Moreover, we find that the optimal flexibility placement in these strategies mirrors the so-called chaining guidelines proposed in the literature. Overall, this work offers a rare integrated perspective on postponement and flexibility with valuable insights for theory and practice.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"293 ","pages":"Article 109902"},"PeriodicalIF":10.0,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146170176","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 : 2026-03-01Epub Date: 2025-12-15DOI: 10.1016/j.ijpe.2025.109896
Willy A. Oliveira Soler , Maristela Oliveira Santos , Rogério de Ávila Ribeiro Junqueira , Reinaldo Morabito
In this paper, we address a tactical sugarcane harvest planning problem commonly faced by industries that cultivate, harvest, and process sugarcane in Brazil and some other countries. The problem involves a single mill that must harvest sugarcane from several geographically dispersed areas (harvest blocks) using capacitated mechanized harvest fronts. The objective is to minimize the total costs of the harvest process while satisfying operational constraints, including capacity limits for transportation and harvesting. We propose a new mixed-integer programming (MIP) model and develop MIP-based constructive and improvement heuristic procedures. In the constructive phase, the method generates a strong dual bound and an initial feasible solution, while the improvement phase refines this solution to achieve higher quality. The efficiency of the proposed methods is evaluated through computational experiments using a dataset based on real-world scenarios. Additionally, a sensitivity analysis provides managerial insights by examining different harvest front configurations.
{"title":"A modeling and optimization approach to a tactical sugarcane harvest planning problem","authors":"Willy A. Oliveira Soler , Maristela Oliveira Santos , Rogério de Ávila Ribeiro Junqueira , Reinaldo Morabito","doi":"10.1016/j.ijpe.2025.109896","DOIUrl":"10.1016/j.ijpe.2025.109896","url":null,"abstract":"<div><div>In this paper, we address a tactical sugarcane harvest planning problem commonly faced by industries that cultivate, harvest, and process sugarcane in Brazil and some other countries. The problem involves a single mill that must harvest sugarcane from several geographically dispersed areas (harvest blocks) using capacitated mechanized harvest fronts. The objective is to minimize the total costs of the harvest process while satisfying operational constraints, including capacity limits for transportation and harvesting. We propose a new mixed-integer programming (MIP) model and develop MIP-based constructive and improvement heuristic procedures. In the constructive phase, the method generates a strong dual bound and an initial feasible solution, while the improvement phase refines this solution to achieve higher quality. The efficiency of the proposed methods is evaluated through computational experiments using a dataset based on real-world scenarios. Additionally, a sensitivity analysis provides managerial insights by examining different harvest front configurations.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"293 ","pages":"Article 109896"},"PeriodicalIF":10.0,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145788633","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 : 2026-03-01Epub Date: 2025-12-26DOI: 10.1016/j.ijpe.2025.109906
Liangliang Hou, Shichun Du, Gongbing Bi
Supply chain finance (SCF) plays a pivotal role in enhancing liquidity and operational efficiency for supply chain enterprises, particularly for capital-constrained suppliers. However, repayment risk—the failure of borrowers to meet payment obligations—can propagate through supply networks, causing systemic financial disruptions and production delays. While existing studies predominantly rely on structured financial data (e.g., financial statements) and periodic reports for risk assessment, these approaches suffer from timeliness gaps and fail to reflect real-time operational vulnerabilities. To address these limitations, this study proposes DeepRRP, a novel repayment risk prediction (RRP) framework that integrates the latest disclosures (e.g., litigation announcements, executive changes) with conventional financial indicators. Leveraging advanced large language models (LLMs) and deep learning algorithms, DeepRRP captures risk signals from disclosure texts and models their temporal dependencies, enabling proactive risk mitigation. Empirical tests on Chinese listed firms demonstrate that textual features from the latest disclosures can effectively compensate for the timeliness lag of traditional financial data and improve the accuracy of RRP. In addition, interpretable analysis identifies key factors affecting repayment risk, helping practitioners optimize lending terms and suppliers manage working capital.
{"title":"From text to risk: Predicting repayment risk in supply chain finance with deep learning and large language models","authors":"Liangliang Hou, Shichun Du, Gongbing Bi","doi":"10.1016/j.ijpe.2025.109906","DOIUrl":"10.1016/j.ijpe.2025.109906","url":null,"abstract":"<div><div>Supply chain finance (SCF) plays a pivotal role in enhancing liquidity and operational efficiency for supply chain enterprises, particularly for capital-constrained suppliers. However, repayment risk—the failure of borrowers to meet payment obligations—can propagate through supply networks, causing systemic financial disruptions and production delays. While existing studies predominantly rely on structured financial data (e.g., financial statements) and periodic reports for risk assessment, these approaches suffer from timeliness gaps and fail to reflect real-time operational vulnerabilities. To address these limitations, this study proposes DeepRRP, a novel repayment risk prediction (RRP) framework that integrates the latest disclosures (e.g., litigation announcements, executive changes) with conventional financial indicators. Leveraging advanced large language models (LLMs) and deep learning algorithms, DeepRRP captures risk signals from disclosure texts and models their temporal dependencies, enabling proactive risk mitigation. Empirical tests on Chinese listed firms demonstrate that textual features from the latest disclosures can effectively compensate for the timeliness lag of traditional financial data and improve the accuracy of RRP. In addition, interpretable analysis identifies key factors affecting repayment risk, helping practitioners optimize lending terms and suppliers manage working capital.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"293 ","pages":"Article 109906"},"PeriodicalIF":10.0,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146170179","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 : 2026-03-01Epub Date: 2025-12-06DOI: 10.1016/j.ijpe.2025.109869
Ilgin Efe Senyuva , Melvin Drent , Zumbul Atan
Managing perishable inventory in grocery retailing is challenging due to limited shelf life and consumer expectations for freshness. We develop an optimization model to guide a retailer’s in-store replenishment process, where inventory is initially stored in a backroom before being moved to the shelf. Consumer demand is stochastic and depends on shelf-life and inventory level, and the retailer wants to maximize long-term discounted profit by determining optimal time to move inventory from the backroom to the shelf. We show that the optimal policy follows a threshold structure dependent on shelf inventory levels and product lifetimes. To simplify decision-making, we propose heuristics. Our analysis indicates that the optimal time to move products from backrooms to shelves is highly dependent on the characteristics of the products. The main driver of this decision is the shelf inventory level for products with long shelf-lives and small batches. On the other hand, for products with short shelf-lives and large batch-sizes, the main driver is the product lifetime. While mixing batches on the shelf can reduce waste under ideal backroom storage, displaying a single batch is more profitable when backroom deterioration is significant.
{"title":"Perishable inventory management under inventory level- and freshness-dependent demand and backroom effect","authors":"Ilgin Efe Senyuva , Melvin Drent , Zumbul Atan","doi":"10.1016/j.ijpe.2025.109869","DOIUrl":"10.1016/j.ijpe.2025.109869","url":null,"abstract":"<div><div>Managing perishable inventory in grocery retailing is challenging due to limited shelf life and consumer expectations for freshness. We develop an optimization model to guide a retailer’s in-store replenishment process, where inventory is initially stored in a backroom before being moved to the shelf. Consumer demand is stochastic and depends on shelf-life and inventory level, and the retailer wants to maximize long-term discounted profit by determining optimal time to move inventory from the backroom to the shelf. We show that the optimal policy follows a threshold structure dependent on shelf inventory levels and product lifetimes. To simplify decision-making, we propose heuristics. Our analysis indicates that the optimal time to move products from backrooms to shelves is highly dependent on the characteristics of the products. The main driver of this decision is the shelf inventory level for products with long shelf-lives and small batches. On the other hand, for products with short shelf-lives and large batch-sizes, the main driver is the product lifetime. While mixing batches on the shelf can reduce waste under ideal backroom storage, displaying a single batch is more profitable when backroom deterioration is significant.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"293 ","pages":"Article 109869"},"PeriodicalIF":10.0,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145705448","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 : 2026-02-01Epub Date: 2026-01-05DOI: 10.1016/j.ijpe.2026.109913
Nenggui Zhao , Youqing Wu , Kai Li
With the rapid development of the platform economy, product-related content (e.g., short videos, copywriting, and live streaming) has emerged as a pivotal determinant of consumer decision-making. The widespread adoption of Generative Artificial Intelligence (GAI) technology enables content creators to produce product-related content more efficiently and at lower cost, yet it concurrently introduces new challenges. Specifically, the proliferation of GAI has heightened consumer skepticism regarding the authenticity and reliability of GAI-created content. Therefore, achieving a balance between GAI application and consumer trust is crucial for content creators. This paper examines a retail platform with two competing content creators who face a strategic choice between two content creation strategies: GAI-creation and human-creation, with consumers exhibiting greater trust in the latter. Our findings indicate that when the costs of GAI-creation are low, creators increase their content effort levels and set higher selling prices. Conversely, higher GAI costs result in reduced effort levels and lower pricing. Notably, under low GAI-creation costs, adopting GAI proves beneficial for creators, irrespective of their competitors’ strategies. Furthermore, if both parties adopt the GAI-creation strategy, a triple-win situation can be achieved among the platform and the two creators. However, when the GAI-creation costs are high, creators eschew GAI adoption regardless of their competitors’ decisions. In such cases, mutual reliance on human-creation yields a triple-win outcome for the entire supply chain. Finally, under hybrid strategy scenarios, the platform systematically guides creators with greater market influence toward the content creation strategy that holds relative advantages.
{"title":"Human vs. Generative AI: Strategic content creation mode choices for competing creators","authors":"Nenggui Zhao , Youqing Wu , Kai Li","doi":"10.1016/j.ijpe.2026.109913","DOIUrl":"10.1016/j.ijpe.2026.109913","url":null,"abstract":"<div><div>With the rapid development of the platform economy, product-related content (e.g., short videos, copywriting, and live streaming) has emerged as a pivotal determinant of consumer decision-making. The widespread adoption of Generative Artificial Intelligence (GAI) technology enables content creators to produce product-related content more efficiently and at lower cost, yet it concurrently introduces new challenges. Specifically, the proliferation of GAI has heightened consumer skepticism regarding the authenticity and reliability of GAI-created content. Therefore, achieving a balance between GAI application and consumer trust is crucial for content creators. This paper examines a retail platform with two competing content creators who face a strategic choice between two content creation strategies: GAI-creation and human-creation, with consumers exhibiting greater trust in the latter. Our findings indicate that when the costs of GAI-creation are low, creators increase their content effort levels and set higher selling prices. Conversely, higher GAI costs result in reduced effort levels and lower pricing. Notably, under low GAI-creation costs, adopting GAI proves beneficial for creators, irrespective of their competitors’ strategies. Furthermore, if both parties adopt the GAI-creation strategy, a triple-win situation can be achieved among the platform and the two creators. However, when the GAI-creation costs are high, creators eschew GAI adoption regardless of their competitors’ decisions. In such cases, mutual reliance on human-creation yields a triple-win outcome for the entire supply chain. Finally, under hybrid strategy scenarios, the platform systematically guides creators with greater market influence toward the content creation strategy that holds relative advantages.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"292 ","pages":"Article 109913"},"PeriodicalIF":10.0,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145963239","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}
To reduce food waste, many supermarkets discount food products that are close to their expiration date. In practice, this is done either by discount labels put on the product or by electronic shelf labels (or digital price tags) showing the price per expiration date. Digital price tags allow to easily change the price of products and to apply different discount rates to items with different expiration dates. An important question to practitioners is when and how much discount to offer. In this study, we use Stochastic Dynamic Programming (SDP) to derive optimal expiration-date-based discounting policies for a profit-maximizing retailer who sells a product with periods (e.g., days) of shelf life. We compare various discounting strategies, such as static last-day discounting, optimal dynamic last-day, and last-two-days discounting, against the no-discounting strategy.
The model allows products of different expiration dates to be in stock simultaneously, as replenishment happens every period. In the last-day discounting policies, two selling prices co-exist: the regular price and the discounted price. When applying a last-two-days discounting policy, three selling prices co-exist. Demand and product withdrawal depend on both price and product age (freshness). We consider different customer picking behavior, and divide customers into First-Expiry-First-Out (FEFO) and Last-Expiry-First-Out (LEFO) consumers (i.e, customers that pick the oldest items first and customers that take the freshest items available). For LEFO customers, we also consider that a fraction of these customers will pick discounted old items (depending on the size of discount). Finally, extra demand is attracted as long as discounted products are available.
Optimal policies are derived by SDP and evaluated by simulation to generate insights into the impact of discounting on profits, sales, fill rates, and waste. Various key factors, such as shelf life, customer picking behavior, and discount sensitivity are analyzed in detail. The results show that the last-two-days discounting policy performs well. Averaged over all experiments, this policy demonstrates a 3.8% increase in profits compared to no-discounting, and a waste reduction from 5.6% to 3.6%. Smaller, but still significant improvements are shown over simpler discounting policies.
{"title":"Dynamic expiration date-based discounting of fresh food products","authors":"Rene Haijema , Lisan Duijvestijn , Renzo Akkerman , Frans Cruijssen","doi":"10.1016/j.ijpe.2025.109824","DOIUrl":"10.1016/j.ijpe.2025.109824","url":null,"abstract":"<div><div>To reduce food waste, many supermarkets discount food products that are close to their expiration date. In practice, this is done either by discount labels put on the product or by electronic shelf labels (or digital price tags) showing the price per expiration date. Digital price tags allow to easily change the price of products and to apply different discount rates to items with different expiration dates. An important question to practitioners is when and how much discount to offer. In this study, we use Stochastic Dynamic Programming (SDP) to derive optimal expiration-date-based discounting policies for a profit-maximizing retailer who sells a product with <span><math><mi>m</mi></math></span> periods (e.g., days) of shelf life. We compare various discounting strategies, such as static last-day discounting, optimal dynamic last-day, and last-two-days discounting, against the no-discounting strategy.</div><div>The model allows products of different expiration dates to be in stock simultaneously, as replenishment happens every period. In the last-day discounting policies, two selling prices co-exist: the regular price and the discounted price. When applying a last-two-days discounting policy, three selling prices co-exist. Demand and product withdrawal depend on both price and product age (freshness). We consider different customer picking behavior, and divide customers into First-Expiry-First-Out (FEFO) and Last-Expiry-First-Out (LEFO) consumers (i.e, customers that pick the oldest items first and customers that take the freshest items available). For LEFO customers, we also consider that a fraction of these customers will pick discounted old items (depending on the size of discount). Finally, extra demand is attracted as long as discounted products are available.</div><div>Optimal policies are derived by SDP and evaluated by simulation to generate insights into the impact of discounting on profits, sales, fill rates, and waste. Various key factors, such as shelf life, customer picking behavior, and discount sensitivity are analyzed in detail. The results show that the last-two-days discounting policy performs well. Averaged over all experiments, this policy demonstrates a 3.8% increase in profits compared to no-discounting, and a waste reduction from 5.6% to 3.6%. Smaller, but still significant improvements are shown over simpler discounting policies.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"292 ","pages":"Article 109824"},"PeriodicalIF":10.0,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145963356","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 : 2026-02-01Epub Date: 2025-10-17DOI: 10.1016/j.ijpe.2025.109832
Xiuli Liu , Jing Cui , Yukun Chang , Chunguang Bai , Xiaohang Yue , Jun Shen , Qinqin Shi
Green finance plays a crucial role in reducing corporate carbon emissions. However, the mechanisms linking green finance to emission reduction remain underexplored. This study examines 1399 Chinese listed companies from 2013 to 2022 to evaluate the carbon-reducing effects of the Green Financial Reform and Innovation Pilot Zone (GFRI). Using a two-stage value chain framework, we decompose green innovation into green technology research and development and green outcomes transformation to analyze the transmission mechanisms. The results show three key findings. First, the implementation of the GFRI significantly reduces corporate carbon emissions, and the results are robust across specifications. Second, the policy effect is stronger among firms in the central and eastern regions and in the manufacturing sector. Third, the carbon reduction effect of the GFRI is primarily driven by improvements in green innovation efficiency. Green outcomes transformation efficiency plays a more critical role than green technology research and development efficiency. These findings suggest that firms should accelerate green innovation processes and strengthen internal regulatory mechanisms to increase the effectiveness of green finance policies in promoting carbon reduction.
{"title":"Facilitating net-zero emissions goals through green finance: Enhancing efficiency in corporate green innovation within a two-stage value chain framework","authors":"Xiuli Liu , Jing Cui , Yukun Chang , Chunguang Bai , Xiaohang Yue , Jun Shen , Qinqin Shi","doi":"10.1016/j.ijpe.2025.109832","DOIUrl":"10.1016/j.ijpe.2025.109832","url":null,"abstract":"<div><div>Green finance plays a crucial role in reducing corporate carbon emissions. However, the mechanisms linking green finance to emission reduction remain underexplored. This study examines 1399 Chinese listed companies from 2013 to 2022 to evaluate the carbon-reducing effects of the Green Financial Reform and Innovation Pilot Zone (GFRI). Using a two-stage value chain framework, we decompose green innovation into green technology research and development and green outcomes transformation to analyze the transmission mechanisms. The results show three key findings. First, the implementation of the GFRI significantly reduces corporate carbon emissions, and the results are robust across specifications. Second, the policy effect is stronger among firms in the central and eastern regions and in the manufacturing sector. Third, the carbon reduction effect of the GFRI is primarily driven by improvements in green innovation efficiency. Green outcomes transformation efficiency plays a more critical role than green technology research and development efficiency. These findings suggest that firms should accelerate green innovation processes and strengthen internal regulatory mechanisms to increase the effectiveness of green finance policies in promoting carbon reduction.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"292 ","pages":"Article 109832"},"PeriodicalIF":10.0,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145963362","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 : 2026-02-01Epub Date: 2025-10-16DOI: 10.1016/j.ijpe.2025.109826
Yancy Vaillant , Samuel Fosso Wamba , Rodrigo Rabetino
The rapid advancement of digitalization and artificial intelligence (AI) is transforming the manufacturing landscape, creating turbulence and complexity that challenge established managerial frameworks. Many of the theoretical models that once guided production management now require revision to remain relevant in an AI-driven environment. This special issue on AI Platforms for Digital Servitization and Solution Delivery of the International Journal of Production Economics addresses this need by integrating research on three converging trajectories—platform ecosystems, digital servitization, and solution delivery—into a unified, programmatic theoretical framework. The editorial conceptualises AI platforms as key enablers that connect these domains, facilitating the development of comprehensive smart solutions through the alignment of business models, production technologies, and value ecosystems. Collectively, the studies contribute to a deeper understanding of how AI reshapes value creation and delivery in manufacturing contexts. This framework provides a foundation for future empirical validation and offers practical insights to guide managers in navigating the evolving realities of algorithmic-driven production systems.
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