Pub Date : 2025-12-12DOI: 10.1016/j.ijpe.2025.109886
Fapeng Nie , Xiang Li , Zhaofu Hong
In the ride-hailing market, facing passengers with heterogeneous behaviors, some ride-hailing platforms (e.g., DiDi or Uber) develop a scoring system to provide differential service. To explore the benefits of this differential service, we develop game-theoretic models to capture the interactions among the platform, passengers, and drivers. The results show that the ride-hailing platform always adopts a markup pricing strategy with cost-sharing, regardless of whether the platform adopts differential service. As the loss cost increases, the ride-hailing platform tends to develop a scoring system and serve only passengers with high scores, but this strategic switch may harm both passengers and drivers. Fortunately, the ride-hailing platform can perfectly mitigate the conflict with passengers by adjusting the scoring standard. Furthermore, we extend our baseline model to a three-tiered passenger segmentation, confirming the robustness of our findings and enhancing the practical relevance of our study.
{"title":"Differential service strategies of ride-hailing platforms for passengers with heterogeneous behaviors","authors":"Fapeng Nie , Xiang Li , Zhaofu Hong","doi":"10.1016/j.ijpe.2025.109886","DOIUrl":"10.1016/j.ijpe.2025.109886","url":null,"abstract":"<div><div>In the ride-hailing market, facing passengers with heterogeneous behaviors, some ride-hailing platforms (e.g., DiDi or Uber) develop a scoring system to provide differential service. To explore the benefits of this differential service, we develop game-theoretic models to capture the interactions among the platform, passengers, and drivers. The results show that the ride-hailing platform always adopts a markup pricing strategy with cost-sharing, regardless of whether the platform adopts differential service. As the loss cost increases, the ride-hailing platform tends to develop a scoring system and serve only passengers with high scores, but this strategic switch may harm both passengers and drivers. Fortunately, the ride-hailing platform can perfectly mitigate the conflict with passengers by adjusting the scoring standard. Furthermore, we extend our baseline model to a three-tiered passenger segmentation, confirming the robustness of our findings and enhancing the practical relevance of our study.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"293 ","pages":"Article 109886"},"PeriodicalIF":10.0,"publicationDate":"2025-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146170177","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 : 2025-12-11DOI: 10.1016/j.ijpe.2025.109891
Yuhong Liu , Lu Zhang
Social commerce platforms integrate social interactions with e-commerce, presenting brand manufacturers with new distribution avenues. These platforms empower manufacturers to carry out digital content marketing but also subject them to increased uncertainty, particularly online firestorms, where the rapid spread of negative information harms brand reputation and performance. This paper employs differential game theory to investigate optimal pricing and marketing strategies across different channel expansion strategies, including no expansion (Strategy N), expansion to a new traditional e-commerce platform(Strategy TT), and expansion to a social commerce platform(Strategy TS), and analyzes the optimal strategy for a manufacturer already operating on a traditional e-commerce platform. Our results show, firstly, that when the occurrence probability and damage rate of online firestorms are high, both the manufacturer and the platform implement restoration strategies to counteract the firestorms, which may contribute to the enhancement of platform goodwill in the long run. In contrast, when the occurrence probability or damage rate is less significant, they employ resilience strategies to minimize negative consequences. Secondly, when the fixed cost of channel expansion is low and the commission rate is low, Strategy TS yields higher profits for the manufacturer. As the commission rate increases, Strategy TT becomes more advantageous and emerges as the preferred option. When either the fixed cost is high or the commission rate is excessively high, the manufacturer tends to favor Strategy N. Finally, expanding via Strategy TT may enhance the profitability of the incumbent platform, achieving a win-win situation for both parties.
{"title":"Channel selection for the manufacturer considering online firestorms in social commerce era","authors":"Yuhong Liu , Lu Zhang","doi":"10.1016/j.ijpe.2025.109891","DOIUrl":"10.1016/j.ijpe.2025.109891","url":null,"abstract":"<div><div>Social commerce platforms integrate social interactions with e-commerce, presenting brand manufacturers with new distribution avenues. These platforms empower manufacturers to carry out digital content marketing but also subject them to increased uncertainty, particularly online firestorms, where the rapid spread of negative information harms brand reputation and performance. This paper employs differential game theory to investigate optimal pricing and marketing strategies across different channel expansion strategies, including no expansion (Strategy N), expansion to a new traditional e-commerce platform(Strategy TT), and expansion to a social commerce platform(Strategy TS), and analyzes the optimal strategy for a manufacturer already operating on a traditional e-commerce platform. Our results show, firstly, that when the occurrence probability and damage rate of online firestorms are high, both the manufacturer and the platform implement restoration strategies to counteract the firestorms, which may contribute to the enhancement of platform goodwill in the long run. In contrast, when the occurrence probability or damage rate is less significant, they employ resilience strategies to minimize negative consequences. Secondly, when the fixed cost of channel expansion is low and the commission rate is low, Strategy TS yields higher profits for the manufacturer. As the commission rate increases, Strategy TT becomes more advantageous and emerges as the preferred option. When either the fixed cost is high or the commission rate is excessively high, the manufacturer tends to favor Strategy N. Finally, expanding via Strategy TT may enhance the profitability of the incumbent platform, achieving a win-win situation for both parties.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"293 ","pages":"Article 109891"},"PeriodicalIF":10.0,"publicationDate":"2025-12-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145880665","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 : 2025-12-11DOI: 10.1016/j.ijpe.2025.109888
Song Huang, Yuhui Peng, Jinran Yu
This study examines the strategic interaction between an incumbent manufacturer’s agency encroachment and an online platform’s external switching in a platform supply chain. The dual-purpose platform, which considers both profit and consumer surplus, can switch to an outside manufacturer when facing the agency encroachment threat of the incumbent manufacturer. We consider the equilibrium strategy for the for-profit and dual-purpose platforms, to explore the impact of the dual-purpose concern, switching option, and agency encroachment on the firms’ profits and consumer surplus. Several interesting findings emerge from this study. First, unlike the for-profit platform, the dual-purpose platform’s switching strategy exhibits a non-trivial pattern for the switching cost. A high dual-purpose concern increases the platform’s switching motivation but inhibits the manufacturer’s agency encroachment incentive. Second, agency encroachment may benefit the platform owing to the additional commission income, and switching may hurt the platform. Importantly, the dual-purpose concern can positively affect the platform, which occurs when the agency encroachment is inhibited by dual purpose or switching. However, the pursuit of consumer surplus does not necessarily benefit consumers. Moreover, the incumbent manufacturer does not favor the dual-purpose platform scenario, particularly under the condition of high switching costs and low commissions. Finally, the extensions indicate that the incumbent manufacturer’s dual-purpose concern may show an opposite effect on the wholesale price and direct sales volume, thereby enhancing the incumbent manufacturer’s agency encroachment incentive; and imperfect product substitution weakens the dual-purpose platform’s ordering motivation.
{"title":"Platform switching with manufacturer encroachment under online retailing and dual-purpose organizations","authors":"Song Huang, Yuhui Peng, Jinran Yu","doi":"10.1016/j.ijpe.2025.109888","DOIUrl":"10.1016/j.ijpe.2025.109888","url":null,"abstract":"<div><div>This study examines the strategic interaction between an incumbent manufacturer’s agency encroachment and an online platform’s external switching in a platform supply chain. The dual-purpose platform, which considers both profit and consumer surplus, can switch to an outside manufacturer when facing the agency encroachment threat of the incumbent manufacturer. We consider the equilibrium strategy for the for-profit and dual-purpose platforms, to explore the impact of the dual-purpose concern, switching option, and agency encroachment on the firms’ profits and consumer surplus. Several interesting findings emerge from this study. First, unlike the for-profit platform, the dual-purpose platform’s switching strategy exhibits a non-trivial pattern for the switching cost. A high dual-purpose concern increases the platform’s switching motivation but inhibits the manufacturer’s agency encroachment incentive. Second, agency encroachment may benefit the platform owing to the additional commission income, and switching may hurt the platform. Importantly, the dual-purpose concern can positively affect the platform, which occurs when the agency encroachment is inhibited by dual purpose or switching. However, the pursuit of consumer surplus does not necessarily benefit consumers. Moreover, the incumbent manufacturer does not favor the dual-purpose platform scenario, particularly under the condition of high switching costs and low commissions. Finally, the extensions indicate that the incumbent manufacturer’s dual-purpose concern may show an opposite effect on the wholesale price and direct sales volume, thereby enhancing the incumbent manufacturer’s agency encroachment incentive; and imperfect product substitution weakens the dual-purpose platform’s ordering motivation.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"293 ","pages":"Article 109888"},"PeriodicalIF":10.0,"publicationDate":"2025-12-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145788632","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 : 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":"2025-12-09","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 : 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":"2025-12-08","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 : 2025-12-06DOI: 10.1016/j.ijpe.2025.109883
Zhenghua Deng , Xumei Zhang
Online product reviews (OPRs) exert a significant influence on consumers' purchasing decisions and play a crucial role in shaping the profitability of firms within supply chains. This study delves into the complexities of a manufacturer's optimal sales channel strategy in the context of OPRs. We analyze three sales channel modes: (a) maintaining both online and traditional channels (Dual-Channel Mode, Mode D), (b) abandoning the direct channel to focus on the traditional resale channel (Traditional-Only Channel Mode, Mode SR), and (c) abandoning the traditional channel to focus on the online direct channel (Direct-Only Channel Mode, Mode SM). We develop game-theoretical models to analyze the interplay between the manufacturer's channel choices and the retailer's pricing strategies. Our analysis reveals that when the effectiveness of OPRs is substantial, the manufacturer tends to favor either Mode SM or Mode D. In contrast, when OPRs are less influential, Mode SR generally yields greater benefits. Interestingly, we find that increased OPR accuracy does not necessarily result in clear-cut advantages for the manufacturer. Specifically, when OPR accuracy is low, the manufacturer prefers Mode SR; however, when OPR accuracy increases, Mode D tends to lead to greater profitability. We extend our model to examine channel cost differentiation, multiple competing retailers, and endogenous online review manipulation. Our primary findings remain robust across these extensions. Our study provides valuable insights for manufacturers when determining their optimal channel strategies in the presence of OPRs.
{"title":"Direct selling, reselling or hybrid? Manufacturer's sales channel strategies in the context of online product reviews","authors":"Zhenghua Deng , Xumei Zhang","doi":"10.1016/j.ijpe.2025.109883","DOIUrl":"10.1016/j.ijpe.2025.109883","url":null,"abstract":"<div><div>Online product reviews (OPRs) exert a significant influence on consumers' purchasing decisions and play a crucial role in shaping the profitability of firms within supply chains. This study delves into the complexities of a manufacturer's optimal sales channel strategy in the context of OPRs. We analyze three sales channel modes: (a) maintaining both online and traditional channels (Dual-Channel Mode, Mode D), (b) abandoning the direct channel to focus on the traditional resale channel (Traditional-Only Channel Mode, Mode SR), and (c) abandoning the traditional channel to focus on the online direct channel (Direct-Only Channel Mode, Mode SM). We develop game-theoretical models to analyze the interplay between the manufacturer's channel choices and the retailer's pricing strategies. Our analysis reveals that when the effectiveness of OPRs is substantial, the manufacturer tends to favor either Mode SM or Mode D. In contrast, when OPRs are less influential, Mode SR generally yields greater benefits. Interestingly, we find that increased OPR accuracy does not necessarily result in clear-cut advantages for the manufacturer. Specifically, when OPR accuracy is low, the manufacturer prefers Mode SR; however, when OPR accuracy increases, Mode D tends to lead to greater profitability. We extend our model to examine channel cost differentiation, multiple competing retailers, and endogenous online review manipulation. Our primary findings remain robust across these extensions. Our study provides valuable insights for manufacturers when determining their optimal channel strategies in the presence of OPRs.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"293 ","pages":"Article 109883"},"PeriodicalIF":10.0,"publicationDate":"2025-12-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145735693","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 : 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":"2025-12-06","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 : 2025-12-05DOI: 10.1016/j.ijpe.2025.109881
Li Bie , Song Huang , Yiwen Bian
This paper studies a manufacturer’s strategic incentives to manage consumer deliberation under platform retailing wherein either the manufacturer or the platform can engage in investment activities to enhance the market demand. Consumers, who are initially uncertain about the quality of the product on the platform, may incur deliberation costs to learn their true valuations. We establish a game-theoretic model to investigate the interplay between channel pricing and consumer deliberation with firm investments and its impact on channel equilibrium, and some nontrivial ramifications are derived. First, we find that consumers are less likely to engage in deliberation in the presence of investment, indicating the depression effect of demand-enhancing investment on consumers’ deliberation behaviors. Second, in the reselling format, the equilibrium channel strategy and the incentive provision for consumer deliberation depend primarily on the investment mode, investment efficiency, and deliberation cost. The manufacturer consistently provides an incentive to induce (inhibit) deliberation for a low (moderate) investment efficiency, independent of the deliberation cost. Third, firms have stronger incentives to induce deliberation by setting a higher price under manufacturer investment than under platform investment. And channel members’ investments do not necessarily benefit themselves, while the platform investment mode is always beneficial to consumer surplus. Finally, in the agency selling format, the highest thought-provoking price becomes suboptimal, and the platform benefits more from manufacturer investment than from platform investment when the commission rate is not excessively high. We further compare the two selling formats and find that the manufacturer prefers the reselling format if both the investment efficiency and the deliberation cost are high.
{"title":"Managing consumer deliberation with demand investment under platform retailing","authors":"Li Bie , Song Huang , Yiwen Bian","doi":"10.1016/j.ijpe.2025.109881","DOIUrl":"10.1016/j.ijpe.2025.109881","url":null,"abstract":"<div><div>This paper studies a manufacturer’s strategic incentives to manage consumer deliberation under platform retailing wherein either the manufacturer or the platform can engage in investment activities to enhance the market demand. Consumers, who are initially uncertain about the quality of the product on the platform, may incur deliberation costs to learn their true valuations. We establish a game-theoretic model to investigate the interplay between channel pricing and consumer deliberation with firm investments and its impact on channel equilibrium, and some nontrivial ramifications are derived. First, we find that consumers are less likely to engage in deliberation in the presence of investment, indicating the depression effect of demand-enhancing investment on consumers’ deliberation behaviors. Second, in the reselling format, the equilibrium channel strategy and the incentive provision for consumer deliberation depend primarily on the investment mode, investment efficiency, and deliberation cost. The manufacturer consistently provides an incentive to induce (inhibit) deliberation for a low (moderate) investment efficiency, independent of the deliberation cost. Third, firms have stronger incentives to induce deliberation by setting a higher price under manufacturer investment than under platform investment. And channel members’ investments do not necessarily benefit themselves, while the platform investment mode is always beneficial to consumer surplus. Finally, in the agency selling format, the highest thought-provoking price becomes suboptimal, and the platform benefits more from manufacturer investment than from platform investment when the commission rate is not excessively high. We further compare the two selling formats and find that the manufacturer prefers the reselling format if both the investment efficiency and the deliberation cost are high.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"292 ","pages":"Article 109881"},"PeriodicalIF":10.0,"publicationDate":"2025-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145963241","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}
Live streaming operations are getting popular nowadays. Considering that a manufacturer sells its products to consumers via a live streaming channel, we investigate the manufacturer’s strategies for virtual character adoption, as well as live-streamer (i.e., employee or influencer) selection, considering live streaming reviews. Some important factors are identified to assess live streaming: (i) manufacturer’s quality improvement and live streaming reviews influencing consumers’ quality perception; (ii) influencer power and value, which reflect the influencer’s personal influence and content categories, respectively; and (iii) virtual character’s main characteristics, namely the virtual character’s intelligence level and product exposure power. We analyze five live streaming scenarios: merchant live streaming channel without virtual character (Scenario EN), merchant live streaming channel with virtual character (Scenario EV), influencer live streaming channel without virtual character (Scenario IN), influencer live streaming channel with virtual character (Scenario IV), and virtual character live streaming channel (Scenario V). Our findings show that for live-streamer selection, regardless of whether a virtual character is introduced, the manufacturer should select the employee (influencer) at the low (high) influencer power. However, without (with) virtual character, it should select the employee (influencer) at the moderate influencer power. Besides, under the high virtual character’s intelligence level (and its low cost factor), the influencer (manufacturer) should adopt the virtual character as the assistant of live-streamer. Moreover, whether to adopt Scenario V depends on the virtual character’s product exposure power and intelligence level in Scenarios EN, EV, and V, as well as its product exposure power, intelligence level, and influencer power in Scenarios IN, IV, and V. Finally, we consider the slice live streaming scenarios to encompass more scenarios.
{"title":"Employee or influencer live streaming? A manufacturer’s strategy for virtual character adoption considering live streaming reviews","authors":"Xiaoping Xu , Xinru Chen , Tsan-Ming Choi , T.C.E. Cheng","doi":"10.1016/j.ijpe.2025.109882","DOIUrl":"10.1016/j.ijpe.2025.109882","url":null,"abstract":"<div><div>Live streaming operations are getting popular nowadays. Considering that a manufacturer sells its products to consumers via a live streaming channel, we investigate the manufacturer’s strategies for virtual character adoption, as well as live-streamer (i.e., employee or influencer) selection, considering live streaming reviews. Some important factors are identified to assess live streaming: (i) manufacturer’s quality improvement and live streaming reviews influencing consumers’ quality perception; (ii) influencer power and value, which reflect the influencer’s personal influence and content categories, respectively; and (iii) virtual character’s main characteristics, namely the virtual character’s intelligence level and product exposure power. We analyze five live streaming scenarios: merchant live streaming channel without virtual character (Scenario EN), merchant live streaming channel with virtual character (Scenario EV), influencer live streaming channel without virtual character (Scenario IN), influencer live streaming channel with virtual character (Scenario IV), and virtual character live streaming channel (Scenario V). Our findings show that for live-streamer selection, regardless of whether a virtual character is introduced, the manufacturer should select the employee (influencer) at the low (high) influencer power. However, without (with) virtual character, it should select the employee (influencer) at the moderate influencer power. Besides, under the high virtual character’s intelligence level (and its low cost factor), the influencer (manufacturer) should adopt the virtual character as the assistant of live-streamer. Moreover, whether to adopt Scenario V depends on the virtual character’s product exposure power and intelligence level in Scenarios EN, EV, and V, as well as its product exposure power, intelligence level, and influencer power in Scenarios IN, IV, and V. Finally, we consider the slice live streaming scenarios to encompass more scenarios.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"293 ","pages":"Article 109882"},"PeriodicalIF":10.0,"publicationDate":"2025-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145788634","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 : 2025-12-04DOI: 10.1016/j.ijpe.2025.109868
Ali Esfahbodi, Hakeem Omolade Sunmola
While blockchain technology offers promising potential for enhancing social sustainability in supply chains, its adoption and effective utilisation remain underexplored. This study, grounded in the dynamic capabilities view, investigates the role of social orientation and the cognitive mechanism of Perceived Usefulness in driving blockchain technology adoption, and its subsequent impact on future social practices and social performance across both pre- and post-adoption phases. Using a quantitative survey of UK manufacturing organisations, this study examines the mediating effects of existing social practices in the pre-adoption phase and future social practices in the post-adoption phase. Findings reveal that while social orientation positively influences blockchain adoption, this effect is partially mediated by existing social practices. Furthermore, blockchain implementation acts as a catalyst for the adoption of future social practices, which in turn mediates its impact on social performance. This study contributes to the operations and supply chain management body of literature by: 1) providing empirical evidence for the mediating role of social practices in the relationship between social orientation, blockchain adoption, and social performance; 2) highlighting the dynamic interplay between existing and future social practices in shaping the adoption and impact of blockchain technology, adopting a multi-stage approach that considers both pre- and post-adoption phases; and 3) providing managers with the strategic tool Blockchain Technology for Social Sustainability (BTSS) for leveraging blockchain for social sustainability.
{"title":"Mediation effects in blockchain technology adoption for social sustainability: Pre- and post-adoption analysis of existing and future socially sustainable supply chains","authors":"Ali Esfahbodi, Hakeem Omolade Sunmola","doi":"10.1016/j.ijpe.2025.109868","DOIUrl":"10.1016/j.ijpe.2025.109868","url":null,"abstract":"<div><div>While blockchain technology offers promising potential for enhancing social sustainability in supply chains, its adoption and effective utilisation remain underexplored. This study, grounded in the dynamic capabilities view, investigates the role of social orientation and the cognitive mechanism of Perceived Usefulness in driving blockchain technology adoption, and its subsequent impact on future social practices and social performance across both pre- and post-adoption phases. Using a quantitative survey of UK manufacturing organisations, this study examines the mediating effects of existing social practices in the pre-adoption phase and future social practices in the post-adoption phase. Findings reveal that while social orientation positively influences blockchain adoption, this effect is partially mediated by existing social practices. Furthermore, blockchain implementation acts as a catalyst for the adoption of future social practices, which in turn mediates its impact on social performance. This study contributes to the operations and supply chain management body of literature by: 1) providing empirical evidence for the mediating role of social practices in the relationship between social orientation, blockchain adoption, and social performance; 2) highlighting the dynamic interplay between existing and future social practices in shaping the adoption and impact of blockchain technology, adopting a multi-stage approach that considers both pre- and post-adoption phases; and 3) providing managers with the strategic tool Blockchain Technology for Social Sustainability (BTSS) for leveraging blockchain for social sustainability.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"292 ","pages":"Article 109868"},"PeriodicalIF":10.0,"publicationDate":"2025-12-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145963357","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}
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