Pub Date : 2025-12-01Epub Date: 2025-09-15DOI: 10.1016/j.orp.2025.100353
Mariano Carbonero-Ruz , Francisco Fernández-Navarro , Antonio M. Durán-Rosal , Javier Pérez-Rodríguez
This study contributes to the optimization literature with an approach that would help investors understand how the risk-aversion profile hyperparameter affects excess returns, risk, and Sharpe ratio curves in portfolio optimization problems with short selling constraints. These curves were characterized by studying the original optimization problem and reducing it to a one-dimensional optimization problem. The problem variable was the excess return, and the minimum level of risk is expressed as a function of it. An approach to the functional form of the minimum risk level curve was also proposed, which allows us to determine an analytical expression for the aforementioned curves. The study provides significant results for the financial literature, such as (i) an upper and lower bound for the risk aversion profile hyperparameter; (ii) the optimal value for the risk aversion profile hyperparameter; (iii) a reduced version of the optimization problem that is easier to solve, and of course (iv) an analytical expression for the excess return, risk and Sharpe ratio curves as functions of the aforementioned hyperparameters. All of these results are reported using the Mean Squared Variance (MSV) portfolio optimization problem as the baseline model, representing the two objectives of the problem minimization function (excess return and risk) in the same unit.
{"title":"A hybrid optimization and data-driven approach to understand the role of the risk-aversion profile parameter in portfolio optimization problems with shorting constraints","authors":"Mariano Carbonero-Ruz , Francisco Fernández-Navarro , Antonio M. Durán-Rosal , Javier Pérez-Rodríguez","doi":"10.1016/j.orp.2025.100353","DOIUrl":"10.1016/j.orp.2025.100353","url":null,"abstract":"<div><div>This study contributes to the optimization literature with an approach that would help investors understand how the risk-aversion profile hyperparameter affects excess returns, risk, and Sharpe ratio curves in portfolio optimization problems with short selling constraints. These curves were characterized by studying the original optimization problem and reducing it to a one-dimensional optimization problem. The problem variable was the excess return, and the minimum level of risk is expressed as a function of it. An approach to the functional form of the minimum risk level curve was also proposed, which allows us to determine an analytical expression for the aforementioned curves. The study provides significant results for the financial literature, such as (i) an upper and lower bound for the risk aversion profile hyperparameter; (ii) the optimal value for the risk aversion profile hyperparameter; (iii) a reduced version of the optimization problem that is easier to solve, and of course (iv) an analytical expression for the excess return, risk and Sharpe ratio curves as functions of the aforementioned hyperparameters. All of these results are reported using the Mean Squared Variance (MSV) portfolio optimization problem as the baseline model, representing the two objectives of the problem minimization function (excess return and risk) in the same unit.</div></div>","PeriodicalId":38055,"journal":{"name":"Operations Research Perspectives","volume":"15 ","pages":"Article 100353"},"PeriodicalIF":3.7,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145104471","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-12-01Epub Date: 2025-10-16DOI: 10.1016/j.orp.2025.100360
Fatemeh Jamshidian, Saeed Yaghoubi, Mohammad Sadeghi
The last-mile delivery of COVID-19 vaccines required a structured timeframe, particularly for double-dose vaccines, where follow-up deliveries had to occur after vaccine type-specific intervals. This recurring service pattern inspired the development of a novel recursive delivery concept—where services must be repeated based on prior deliveries and elapsed time. We define recursive delivery as a multi-period mechanism that dynamically establishes whether, when, and how each customer should be revisited, built upon both service history and time-based constraints. To capture such recursive service patterns, this paper introduces a coordinated truck-drone delivery system, where either vehicle may recursively revisit previously serviced locations depending on the type of service—single or recursive— provided in earlier periods. To formalize this concept, we present a new variant of the Traveling Salesman Problem, termed the Recursive delivery multiple Flying Sidekicks Traveling Salesman Problem . This model extends traditional by incorporating dynamic, service-type-dependent revisit scheduling. The has wide applicability in various domains requiring structured, time-sensitive service repetition, such as maintenance, health services, and supply replenishment. We formulate the as a mixed-integer linear programming model aimed at minimizing total transportation costs. Given the computational limitations of exact solvers for large-scale instances, a tailored metaheuristic algorithm has been developed to address the structural characteristics of the proposed . Its performance has been benchmarked against results from a relevant study, demonstrating competitive outcomes. Furthermore, a lower bound is provided to evaluate the quality of the obtained solutions.
{"title":"Recursive delivery multiple flying sidekicks traveling salesman problem: An enlightenment of the Covid-19 pandemic","authors":"Fatemeh Jamshidian, Saeed Yaghoubi, Mohammad Sadeghi","doi":"10.1016/j.orp.2025.100360","DOIUrl":"10.1016/j.orp.2025.100360","url":null,"abstract":"<div><div>The last-mile delivery of COVID-19 vaccines required a structured timeframe, particularly for double-dose vaccines, where follow-up deliveries had to occur after vaccine type-specific intervals. This recurring service pattern inspired the development of a novel recursive delivery concept—where services must be repeated based on prior deliveries and elapsed time. We define recursive delivery as a multi-period mechanism that dynamically establishes whether, when, and how each customer should be revisited, built upon both service history and time-based constraints. To capture such recursive service patterns, this paper introduces a coordinated truck-drone delivery system, where either vehicle may recursively revisit previously serviced locations depending on the type of service—single or recursive— provided in earlier periods. To formalize this concept, we present a new variant of the Traveling Salesman Problem, termed the Recursive delivery multiple Flying Sidekicks Traveling Salesman Problem <span><math><mrow><mo>(</mo><mrow><mi>R</mi><mo>−</mo><mi>m</mi><mi>F</mi><mi>S</mi><mi>T</mi><mi>S</mi><mi>P</mi></mrow><mo>)</mo></mrow></math></span>. This model extends traditional <span><math><mrow><mi>T</mi><mi>S</mi><mi>P</mi></mrow></math></span> by incorporating dynamic, service-type-dependent revisit scheduling. The <span><math><mrow><mi>R</mi><mo>−</mo><mi>m</mi><mi>F</mi><mi>S</mi><mi>T</mi><mi>S</mi><mi>P</mi></mrow></math></span> has wide applicability in various domains requiring structured, time-sensitive service repetition, such as maintenance, health services, and supply replenishment. We formulate the <span><math><mrow><mi>R</mi><mo>−</mo><mi>m</mi><mi>F</mi><mi>S</mi><mi>T</mi><mi>S</mi><mi>P</mi><mspace></mspace></mrow></math></span>as a mixed-integer linear programming model aimed at minimizing total transportation costs. Given the computational limitations of exact solvers for large-scale instances, a tailored metaheuristic algorithm has been developed to address the structural characteristics of the proposed <span><math><mrow><mi>R</mi><mo>−</mo><mi>m</mi><mi>F</mi><mi>S</mi><mi>T</mi><mi>S</mi><mi>P</mi></mrow></math></span>. Its performance has been benchmarked against results from a relevant study, demonstrating competitive outcomes. Furthermore, a lower bound is provided to evaluate the quality of the obtained solutions.</div></div>","PeriodicalId":38055,"journal":{"name":"Operations Research Perspectives","volume":"15 ","pages":"Article 100360"},"PeriodicalIF":3.7,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145361538","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-01Epub Date: 2025-04-09DOI: 10.1016/j.orp.2025.100340
Kuo-Ching Ying , Pourya Pourhejazy , Zhi-Rong Lin
The role of setup times in production planning and control was recognised in the late 1960s. Since then, a growing number of scheduling problems have accounted for sequence-dependent setup time variables. This study aims to provide a systematic review of setup times in the short-term production planning literature, using an objective, algorithm-based approach. The Main Path Analysis (MPA) and Cluster Analysis (CA) methods are employed to identify patterns of knowledge development and the most significant advancements in the field. Over 2100 articles published between 1986 and 2024 were considered in the review. The seminal articles contributing to the advances in setup times for production scheduling are reviewed. Meanwhile, the core optimisation technologies, model characteristics, and emerging issues at different stages of literature development are discussed. The key extensions of the main path are further explored to identify secondary research interests in the field. Twenty-two research themes were identified to provide an overall perspective and shed light on the technical features and challenges. Finally, future research directions are suggested based on the outcomes of this systematic review.
{"title":"Scheduling with sequence-dependent setup times in short-term production planning: A main path analysis-based review","authors":"Kuo-Ching Ying , Pourya Pourhejazy , Zhi-Rong Lin","doi":"10.1016/j.orp.2025.100340","DOIUrl":"10.1016/j.orp.2025.100340","url":null,"abstract":"<div><div>The role of setup times in production planning and control was recognised in the late 1960s. Since then, a growing number of scheduling problems have accounted for sequence-dependent setup time variables. This study aims to provide a systematic review of setup times in the short-term production planning literature, using an objective, algorithm-based approach. The Main Path Analysis (MPA) and Cluster Analysis (CA) methods are employed to identify patterns of knowledge development and the most significant advancements in the field. Over 2100 articles published between 1986 and 2024 were considered in the review. The seminal articles contributing to the advances in setup times for production scheduling are reviewed. Meanwhile, the core optimisation technologies, model characteristics, and emerging issues at different stages of literature development are discussed. The key extensions of the main path are further explored to identify secondary research interests in the field. Twenty-two research themes were identified to provide an overall perspective and shed light on the technical features and challenges. Finally, future research directions are suggested based on the outcomes of this systematic review.</div></div>","PeriodicalId":38055,"journal":{"name":"Operations Research Perspectives","volume":"14 ","pages":"Article 100340"},"PeriodicalIF":3.7,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143838294","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A cationic reagent is an essential raw material in printing paper production. The market environment of the cationic reagent industry is influenced by the printing paper industry. Owing to the COVID-19 pandemic, the global expansion of remote work and home education has decreased the demand for printing papers. Consequently, competition among market players (i.e., suppliers and buyers) in the cationic reagent industry is intensifying. This study focuses on cooperation between market players in the cationic reagent industry, representing a typical oligopolistic and mature industry. It proposes a supply chain optimization model that minimizes the costs of the entire supply chain, incorporating buyers’ risk hedge tendency to address market uncertainty. The model is empirically tested using accessible and reliable data to assess its business applicability. Numerical experiments are conducted to explore scenarios that can occur in real market environment, such as levels of risk hedging, trade disputes, decreases in demand, and changes in production capacity. The experimental results provide managerial implications. As buyers maximize the degree to which they diversify their purchase quantities across multiple suppliers to reduce risks, differential costs of the entire supply chain increase by 19%, which are costs that cannot be reduced by suppliers’ capabilities and inevitably arise due to differences between suppliers (e.g., geography, politics, and government policies). However, in unfavorable market conditions, such as trade disputes and decreases in demand, less competitive suppliers can survive. This study shows that when market demand in the cationic reagent industry decreases, two suppliers may potentially experience operational outages. In reality, these two suppliers deteriorated under the challenging market conditions during the COVID-19 pandemic.
{"title":"Cooperation and competition in an oligopolistic and mature industry: A case study on the cationic reagent industry based on an optimization model","authors":"Joohang Kang, Byoungil Choi, Chaehong Lim, Joonyup Eun","doi":"10.1016/j.orp.2025.100325","DOIUrl":"10.1016/j.orp.2025.100325","url":null,"abstract":"<div><div>A cationic reagent is an essential raw material in printing paper production. The market environment of the cationic reagent industry is influenced by the printing paper industry. Owing to the COVID-19 pandemic, the global expansion of remote work and home education has decreased the demand for printing papers. Consequently, competition among market players (<em>i.e</em>., suppliers and buyers) in the cationic reagent industry is intensifying. This study focuses on cooperation between market players in the cationic reagent industry, representing a typical oligopolistic and mature industry. It proposes a supply chain optimization model that minimizes the costs of the entire supply chain, incorporating buyers’ risk hedge tendency to address market uncertainty. The model is empirically tested using accessible and reliable data to assess its business applicability. Numerical experiments are conducted to explore scenarios that can occur in real market environment, such as levels of risk hedging, trade disputes, decreases in demand, and changes in production capacity. The experimental results provide managerial implications. As buyers maximize the degree to which they diversify their purchase quantities across multiple suppliers to reduce risks, differential costs of the entire supply chain increase by 19%, which are costs that cannot be reduced by suppliers’ capabilities and inevitably arise due to differences between suppliers (<em>e.g</em>., geography, politics, and government policies). However, in unfavorable market conditions, such as trade disputes and decreases in demand, less competitive suppliers can survive. This study shows that when market demand in the cationic reagent industry decreases, two suppliers may potentially experience operational outages. In reality, these two suppliers deteriorated under the challenging market conditions during the COVID-19 pandemic.</div></div>","PeriodicalId":38055,"journal":{"name":"Operations Research Perspectives","volume":"14 ","pages":"Article 100325"},"PeriodicalIF":3.7,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143102454","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-01Epub Date: 2025-02-27DOI: 10.1016/j.orp.2025.100328
Muhammad Tayyab , Hira Tahir , Muhammad Salman Habib
The electronic retailers face distinct challenges in information sharing compared to their purely offline counterparts, particularly in transparently communicating their environmental practices to increasingly eco-conscious consumers. This complexity increases in e-retailing due to the absence of direct interaction and makes it difficult for consumers to evaluate the sustainability efforts of retailing channel’s stakeholders. In response to it, manufacturers and e-retailers are leveraging social media and blockchain technology for personalized advertising to bridge this information transparency gap. This research presents a sustainable multi-item integrated model for manufacturer–retailer collaboration in e-retailing by incorporating multiple delivery policies and investments in technology aimed at information disclosure and environmental footprint reduction. The manufacturer adopts a smart production system and reuse returned goods in the manufacturing process while investing in Green Emissions Reduction Technology. Meanwhile, the e-retailer enhances product demand through Information Disclosure Technology on social media and blockchain by showcasing their environmental protection efforts. By employing a hybrid analytic-metaheuristic approach, we determine optimal production and delivery policies to improve green consumer service under varying budgetary and spatial constraints. The results demonstrate a 4.39% increase in online consumer demand through information sharing and a 3.86% improvement in profitability of the collaborative retailing system under single-setup multi-delivery policy that confirms robustness of the proposed model. Scenario analysis further provides decision-makers with actionable insights by showcasing 8.44% increment in the system profit by converting traditional production into smart production system. Moreover, the sensitivity of the proposed model to balancing the technology investments among emission control and information disclosure efforts suggests keeping track of the efficiency parameters of these investment options before making technology budget allocations.
{"title":"The impact of information disclosure and smart technology integration on e-retailing performance: A production delivery policy framework","authors":"Muhammad Tayyab , Hira Tahir , Muhammad Salman Habib","doi":"10.1016/j.orp.2025.100328","DOIUrl":"10.1016/j.orp.2025.100328","url":null,"abstract":"<div><div>The electronic retailers face distinct challenges in information sharing compared to their purely offline counterparts, particularly in transparently communicating their environmental practices to increasingly eco-conscious consumers. This complexity increases in e-retailing due to the absence of direct interaction and makes it difficult for consumers to evaluate the sustainability efforts of retailing channel’s stakeholders. In response to it, manufacturers and e-retailers are leveraging social media and blockchain technology for personalized advertising to bridge this information transparency gap. This research presents a sustainable multi-item integrated model for manufacturer–retailer collaboration in e-retailing by incorporating multiple delivery policies and investments in technology aimed at information disclosure and environmental footprint reduction. The manufacturer adopts a smart production system and reuse returned goods in the manufacturing process while investing in Green Emissions Reduction Technology. Meanwhile, the e-retailer enhances product demand through Information Disclosure Technology on social media and blockchain by showcasing their environmental protection efforts. By employing a hybrid analytic-metaheuristic approach, we determine optimal production and delivery policies to improve green consumer service under varying budgetary and spatial constraints. The results demonstrate a 4.39% increase in online consumer demand through information sharing and a 3.86% improvement in profitability of the collaborative retailing system under single-setup multi-delivery policy that confirms robustness of the proposed model. Scenario analysis further provides decision-makers with actionable insights by showcasing 8.44% increment in the system profit by converting traditional production into smart production system. Moreover, the sensitivity of the proposed model to balancing the technology investments among emission control and information disclosure efforts suggests keeping track of the efficiency parameters of these investment options before making technology budget allocations.</div></div>","PeriodicalId":38055,"journal":{"name":"Operations Research Perspectives","volume":"14 ","pages":"Article 100328"},"PeriodicalIF":3.7,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143520870","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-01Epub Date: 2025-04-28DOI: 10.1016/j.orp.2025.100341
Byeong-Min Jeong , Dae-Sung Jang , Han-Lim Choi
In this paper, a novel message-passing algorithm, named AMP-R, based on belief propagation is proposed to solve the heterogeneous multi-depot vehicle routing problem (HMDVRP) in a distributed manner. Unlike traditional approaches, this is the first attempt to decentralize the solution process for the HMDVRP at the depot level, enabling each depot to independently compute and exchange messages to derive conflict-free solutions. The HMDVRP requires assigning customers to depots and determining routes that minimize total travel cost. By reformulating the problem as a maximum a posteriori estimation in a graphical model comprising depot and customer nodes, The proposed approach enables decentralized message calculation and exchange between depots, effectively addressing various types of the HMDVRP. In this process, it is derived that each message calculation can be reduced to a subset-visit traveling salesman problem or a capacitated vehicle routing problem, and approximation techniques are proposed to address these computational challenges. Furthermore, to ensure solution convergence and feasibility, message buffers and a refinement process are introduced. Extensive simulations demonstrate that the proposed AMP-R algorithm yields near-optimal solutions with computational efficiency, offering practical performance for complex large-scale instances where finding optimal solutions is challenging.
{"title":"Decentralized message passing algorithm for heterogeneous multi-depot vehicle routing problems","authors":"Byeong-Min Jeong , Dae-Sung Jang , Han-Lim Choi","doi":"10.1016/j.orp.2025.100341","DOIUrl":"10.1016/j.orp.2025.100341","url":null,"abstract":"<div><div>In this paper, a novel message-passing algorithm, named AMP-R, based on belief propagation is proposed to solve the heterogeneous multi-depot vehicle routing problem (HMDVRP) in a distributed manner. Unlike traditional approaches, this is the first attempt to decentralize the solution process for the HMDVRP at the depot level, enabling each depot to independently compute and exchange messages to derive conflict-free solutions. The HMDVRP requires assigning customers to depots and determining routes that minimize total travel cost. By reformulating the problem as a maximum a posteriori estimation in a graphical model comprising depot and customer nodes, The proposed approach enables decentralized message calculation and exchange between depots, effectively addressing various types of the HMDVRP. In this process, it is derived that each message calculation can be reduced to a subset-visit traveling salesman problem or a capacitated vehicle routing problem, and approximation techniques are proposed to address these computational challenges. Furthermore, to ensure solution convergence and feasibility, message buffers and a refinement process are introduced. Extensive simulations demonstrate that the proposed AMP-R algorithm yields near-optimal solutions with computational efficiency, offering practical performance for complex large-scale instances where finding optimal solutions is challenging.</div></div>","PeriodicalId":38055,"journal":{"name":"Operations Research Perspectives","volume":"14 ","pages":"Article 100341"},"PeriodicalIF":3.7,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143904427","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We study a vehicle routing problem that originates from a Nordic distribution company and includes the essential decision-making components of the company’s logistics operations. The problem considers customer deliveries from a depot using heavy depot vehicles, swap bodies, optional switch points, and lighter local vehicles; a feature is that deliveries are made by both depot and local vehicles. The problem has earlier been solved by a fast metaheuristic, which does however not give any quality guarantee. To assess the solution quality, two strong formulations of the problem based on the column generation approach are developed. In both of these the computational complexity is mitigated through an enumeration of the switch point options. The formulations are evaluated with respect to the quality of the linear programming lower bounds in relation to the bounds obtained from a compact formulation. The strong lower bounding quality enables a significant reduction of the optimality gap compared to the compact formulation. Further, the bounds verify the high quality of the metaheuristic solutions, and for several problem instances the optimality gap is even closed.
{"title":"Evaluating metaheuristic solution quality for a hierarchical vehicle routing problem by strong lower bounding","authors":"Marduch Tadaros , Athanasios Migdalas , Nils-Hassan Quttineh , Torbjörn Larsson","doi":"10.1016/j.orp.2025.100332","DOIUrl":"10.1016/j.orp.2025.100332","url":null,"abstract":"<div><div>We study a vehicle routing problem that originates from a Nordic distribution company and includes the essential decision-making components of the company’s logistics operations. The problem considers customer deliveries from a depot using heavy depot vehicles, swap bodies, optional switch points, and lighter local vehicles; a feature is that deliveries are made by both depot and local vehicles. The problem has earlier been solved by a fast metaheuristic, which does however not give any quality guarantee. To assess the solution quality, two strong formulations of the problem based on the column generation approach are developed. In both of these the computational complexity is mitigated through an enumeration of the switch point options. The formulations are evaluated with respect to the quality of the linear programming lower bounds in relation to the bounds obtained from a compact formulation. The strong lower bounding quality enables a significant reduction of the optimality gap compared to the compact formulation. Further, the bounds verify the high quality of the metaheuristic solutions, and for several problem instances the optimality gap is even closed.</div></div>","PeriodicalId":38055,"journal":{"name":"Operations Research Perspectives","volume":"14 ","pages":"Article 100332"},"PeriodicalIF":3.7,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143681929","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Supply chain network design aims to optimize strategic decisions such as facility location decisions.
These decisions have a major impact on the supply chain, but also on the financial value of the company. However, financial considerations are often omitted from facility location mathematical models.
This paper addresses the challenge of identifying a relevant financial indicator that can be practically implemented in facility location models across different industries.
This paper makes several contributions: the Adjusted Present Value (APV) is identified as such a financial indicator; we propose a mathematical formulation that embeds the APV in a facility location model maximizing firm value; computational experiments demonstrate the tractability of the model. Finally, we compare the mathematical model with a sequential approach that first optimizes logistical decisions and then financial decisions. The proposed model improves the sequential approach up to 5.5%, increases the market coverage and anticipates facility location decisions.
{"title":"Facility location based on Adjusted Present Value","authors":"Hamidreza Rezaei , Nathalie Bostel , Vincent Hovelaque , Olivier Péton , Jean-Laurent Viviani","doi":"10.1016/j.orp.2024.100319","DOIUrl":"10.1016/j.orp.2024.100319","url":null,"abstract":"<div><div>Supply chain network design aims to optimize strategic decisions such as facility location decisions.</div><div>These decisions have a major impact on the supply chain, but also on the financial value of the company. However, financial considerations are often omitted from facility location mathematical models.</div><div>This paper addresses the challenge of identifying a relevant financial indicator that can be practically implemented in facility location models across different industries.</div><div>This paper makes several contributions: the Adjusted Present Value (APV) is identified as such a financial indicator; we propose a mathematical formulation that embeds the APV in a facility location model maximizing firm value; computational experiments demonstrate the tractability of the model. Finally, we compare the mathematical model with a sequential approach that first optimizes logistical decisions and then financial decisions. The proposed model improves the sequential approach up to 5.5%, increases the market coverage and anticipates facility location decisions.</div></div>","PeriodicalId":38055,"journal":{"name":"Operations Research Perspectives","volume":"14 ","pages":"Article 100319"},"PeriodicalIF":3.7,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143102456","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Maintenance is pivotal in the industrial sector, influencing efficiency, reliability, safety, and profitability. An organized spare parts inventory supports maintenance efforts by minimizing downtime, ensuring safety, and optimizing maintenance budgets. Effective spare parts management enhances maintenance operations and improves cash flow. Conversely, human error can greatly diminish the effectiveness of maintenance efforts. This paper presents a mathematical model aimed at minimizing costs through optimized preventive maintenance (PM) planning, effective spare parts inventory control, and reduction of human error. The study provides decision-makers with crucial insights for strategically managing maintenance procedures while accounting for the effect of human error. The model is validated in real-world scenarios through sensitivity analysis, focusing on the shape parameter of the Weibull distribution, and the equipment's effective rate. Findings reveal that as the number of periods increases, maintenance operations follow a specific, predictable cycle. Moreover, the optimal human error probability (HEP) for cost minimization is identified as 0.02. These insights guide decision-makers in recognizing factors influencing human error and implementing proactive strategies to enhance maintenance performance.
{"title":"Enhancing industrial maintenance planning: Optimization of human error reduction and spare parts management","authors":"Vahideh Bafandegan Emroozi , Mostafa Kazemi , Mahdi Doostparast","doi":"10.1016/j.orp.2025.100336","DOIUrl":"10.1016/j.orp.2025.100336","url":null,"abstract":"<div><div>Maintenance is pivotal in the industrial sector, influencing efficiency, reliability, safety, and profitability. An organized spare parts inventory supports maintenance efforts by minimizing downtime, ensuring safety, and optimizing maintenance budgets. Effective spare parts management enhances maintenance operations and improves cash flow. Conversely, human error can greatly diminish the effectiveness of maintenance efforts. This paper presents a mathematical model aimed at minimizing costs through optimized preventive maintenance (PM) planning, effective spare parts inventory control, and reduction of human error. The study provides decision-makers with crucial insights for strategically managing maintenance procedures while accounting for the effect of human error. The model is validated in real-world scenarios through sensitivity analysis, focusing on the shape parameter of the Weibull distribution, and the equipment's effective rate. Findings reveal that as the number of periods increases, maintenance operations follow a specific, predictable cycle. Moreover, the optimal human error probability (HEP) for cost minimization is identified as 0.02. These insights guide decision-makers in recognizing factors influencing human error and implementing proactive strategies to enhance maintenance performance.</div></div>","PeriodicalId":38055,"journal":{"name":"Operations Research Perspectives","volume":"14 ","pages":"Article 100336"},"PeriodicalIF":3.7,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143776865","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-01Epub Date: 2024-12-05DOI: 10.1016/j.orp.2024.100320
Leonard Omer Maly, Tal Avinadav
Qualified and capable employees are crucial for the success of high-tech companies. With an ever-shrinking pool of talent, employers are forced to devise creative recruitment and retention methods, which increasingly take the form of heavy spending on non-salary benefits. The present study contributes to the existing supply-chain literature through examining the role played by such benefits in a two-agent system consisting of a platform and an app developer. In particular, we examine the effect of non-salary benefits on the outgoing quality created by the employees of the app developer. The parties follow a Stackelberg sequential game led by the platform to accurately reflect the interaction in the market, allowing us to reach equilibrium using backward induction. Our results indicate that when app developers are more risk averse or face greater uncertainty, they spend a greater amount on non-salary benefits and comparatively less on app quality. This finding highlights the importance of investing in workers, particularly in uncertain times. We further extend the applicability and robustness of our findings by introducing multiple developers to our two-agent system. The extension proves that the platform charges a universal commission rate, irrespective of the number of developers – a finding that is consistent with current practice. Given the non-linear effect of key model parameters on the profits of the supply-chain members in both the single and the multiple-developer setups, we also utilize numerical analyses and arrive at telling managerial implications for all parties.
{"title":"Smart allocation of a developer's spending on product quality and non-salary employee benefits in a supply chain of apps","authors":"Leonard Omer Maly, Tal Avinadav","doi":"10.1016/j.orp.2024.100320","DOIUrl":"10.1016/j.orp.2024.100320","url":null,"abstract":"<div><div>Qualified and capable employees are crucial for the success of high-tech companies. With an ever-shrinking pool of talent, employers are forced to devise creative recruitment and retention methods, which increasingly take the form of heavy spending on non-salary benefits. The present study contributes to the existing supply-chain literature through examining the role played by such benefits in a two-agent system consisting of a platform and an app developer. In particular, we examine the effect of non-salary benefits on the outgoing quality created by the employees of the app developer. The parties follow a Stackelberg sequential game led by the platform to accurately reflect the interaction in the market, allowing us to reach equilibrium using backward induction. Our results indicate that when app developers are more risk averse or face greater uncertainty, they spend a greater amount on non-salary benefits and comparatively less on app quality. This finding highlights the importance of investing in workers, particularly in uncertain times. We further extend the applicability and robustness of our findings by introducing multiple developers to our two-agent system. The extension proves that the platform charges a universal commission rate, irrespective of the number of developers – a finding that is consistent with current practice. Given the non-linear effect of key model parameters on the profits of the supply-chain members in both the single and the multiple-developer setups, we also utilize numerical analyses and arrive at telling managerial implications for all parties.</div></div>","PeriodicalId":38055,"journal":{"name":"Operations Research Perspectives","volume":"14 ","pages":"Article 100320"},"PeriodicalIF":3.7,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143103027","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}