Pub Date : 2024-10-29DOI: 10.1016/j.ejor.2024.10.028
Werner Baak, Marc Goerigk, Adam Kasperski, Paweł Zieliński
In decision-making under uncertainty, several criteria have been studied to aggregate the performance of a solution over multiple possible scenarios. This paper introduces a novel variant of ordered weighted averaging (OWA) for optimization problems. It generalizes the classic OWA approach, which includes the robust min–max optimization as a special case, as well as the min–max regret optimization. We derive new complexity results for this setting, including insights into the inapproximability and approximability of this problem. In particular, we provide stronger positive approximation results that asymptotically improve the previously best-known bounds for the classic OWA approach.
{"title":"Robust min-max (regret) optimization using ordered weighted averaging","authors":"Werner Baak, Marc Goerigk, Adam Kasperski, Paweł Zieliński","doi":"10.1016/j.ejor.2024.10.028","DOIUrl":"https://doi.org/10.1016/j.ejor.2024.10.028","url":null,"abstract":"In decision-making under uncertainty, several criteria have been studied to aggregate the performance of a solution over multiple possible scenarios. This paper introduces a novel variant of ordered weighted averaging (OWA) for optimization problems. It generalizes the classic OWA approach, which includes the robust min–max optimization as a special case, as well as the min–max regret optimization. We derive new complexity results for this setting, including insights into the inapproximability and approximability of this problem. In particular, we provide stronger positive approximation results that asymptotically improve the previously best-known bounds for the classic OWA approach.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"37 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142670552","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-29DOI: 10.1016/j.ejor.2024.10.023
Jin Yu, Peihai Liu, Xiwen Lu, Manzhan Gu
This paper focuses on the price of fairness in several scheduling problems with two agents, each with a set of nonpreemptive jobs, competing to execute their respective jobs on a single machine. Each agent expects to minimize its objective function, which depends on the completion times of its own jobs. Several objective functions are considered, including makespan, total (weighted) completion time and maximum tardiness. We focus on problems in which both agents pursue the same objective function. For each problem, we analyze the price of fairness and the complexity to find the fairness schedules among the Pareto optimal schedules. When the objective functions of both agents are total completion time, we design an algorithm to generate a near-fair solution and analyze its price of fairness.
{"title":"Analyzing the price of fairness in scheduling problems with two agents","authors":"Jin Yu, Peihai Liu, Xiwen Lu, Manzhan Gu","doi":"10.1016/j.ejor.2024.10.023","DOIUrl":"https://doi.org/10.1016/j.ejor.2024.10.023","url":null,"abstract":"This paper focuses on the price of fairness in several scheduling problems with two agents, each with a set of nonpreemptive jobs, competing to execute their respective jobs on a single machine. Each agent expects to minimize its objective function, which depends on the completion times of its own jobs. Several objective functions are considered, including makespan, total (weighted) completion time and maximum tardiness. We focus on problems in which both agents pursue the same objective function. For each problem, we analyze the price of fairness and the complexity to find the fairness schedules among the Pareto optimal schedules. When the objective functions of both agents are total completion time, we design an algorithm to generate a near-fair solution and analyze its price of fairness.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"11 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142670553","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-28DOI: 10.1016/j.ejor.2024.10.035
Ziming Zhu, D. Marc Kilgour, Keith W. Hipel, Jing Yu
Theorems are established on the interrelationships among non-cooperative, classical and Pareto coalitional stability definitions within the framework of the graph model for conflict resolution. The classical coalition stability concepts are first redefined and then, based on the concept of Pareto coalition improvement, new definitions are proposed for Pareto coalition Nash, Pareto coalition general metarational, Pareto coalition symmetric metarational, and Pareto coalition sequential stability. Relations among Pareto coalition stability definitions, earlier coalition stability definitions, and non-cooperative analogues are explained. The practical applicability of these stability definitions is illustrated through their application to a real-world conflict, a 2014 offshore oil exploration dispute in the South China Sea. The equilibrium results confirm the theoretical validity of the new definitions, and show that valuable insights that can be garnered using the Pareto coalition stability approach.
{"title":"Interrelationships of Non-cooperative, Classical and Pareto coalitional stability definitions","authors":"Ziming Zhu, D. Marc Kilgour, Keith W. Hipel, Jing Yu","doi":"10.1016/j.ejor.2024.10.035","DOIUrl":"https://doi.org/10.1016/j.ejor.2024.10.035","url":null,"abstract":"Theorems are established on the interrelationships among non-cooperative, classical and Pareto coalitional stability definitions within the framework of the graph model for conflict resolution. The classical coalition stability concepts are first redefined and then, based on the concept of Pareto coalition improvement, new definitions are proposed for Pareto coalition Nash, Pareto coalition general metarational, Pareto coalition symmetric metarational, and Pareto coalition sequential stability. Relations among Pareto coalition stability definitions, earlier coalition stability definitions, and non-cooperative analogues are explained. The practical applicability of these stability definitions is illustrated through their application to a real-world conflict, a 2014 offshore oil exploration dispute in the South China Sea. The equilibrium results confirm the theoretical validity of the new definitions, and show that valuable insights that can be garnered using the Pareto coalition stability approach.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"39 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142670556","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-28DOI: 10.1016/j.ejor.2024.10.026
Tristan Becker, Janis Neufeld, Udo Buscher
Large manufacturing companies often manage a network of multiple factories, creating a distributed flow shop scheduling problem for flowline manufacturing processes. This problem involves assigning jobs to one of several distributed factories, each equipped with identical flow shops, and completing the jobs within their designated factory. We expand upon the traditional distributed flow shop scheduling problem by incorporating the transportation of intermediate goods between factories. This transportation can occur after each machine, with shipping times dependent on the distance between the origin and destination factories, potentially delaying further processing. Our objective is to minimize the makespan across all factories. We introduce an iterated greedy search procedure specifically designed for distributed flow shop scheduling with inter-factory transportation. Based on a graph representation, a speed-up procedure is developed to improve the algorithms search ability. Through computational studies, we demonstrate the effectiveness and efficiency of our proposed algorithm, and provide insights into the benefits of transportation. Our findings indicate that incorporating transportation enhances machine utilization across factories by alleviating bottlenecks, ultimately improving overall efficiency and reducing makespan. Besides, we are able to quantify the trade-off between transport times and the benefits of inter-factory transportation.
{"title":"The distributed flow shop scheduling problem with inter-factory transportation","authors":"Tristan Becker, Janis Neufeld, Udo Buscher","doi":"10.1016/j.ejor.2024.10.026","DOIUrl":"https://doi.org/10.1016/j.ejor.2024.10.026","url":null,"abstract":"Large manufacturing companies often manage a network of multiple factories, creating a distributed flow shop scheduling problem for flowline manufacturing processes. This problem involves assigning jobs to one of several distributed factories, each equipped with identical flow shops, and completing the jobs within their designated factory. We expand upon the traditional distributed flow shop scheduling problem by incorporating the transportation of intermediate goods between factories. This transportation can occur after each machine, with shipping times dependent on the distance between the origin and destination factories, potentially delaying further processing. Our objective is to minimize the makespan across all factories. We introduce an iterated greedy search procedure specifically designed for distributed flow shop scheduling with inter-factory transportation. Based on a graph representation, a speed-up procedure is developed to improve the algorithms search ability. Through computational studies, we demonstrate the effectiveness and efficiency of our proposed algorithm, and provide insights into the benefits of transportation. Our findings indicate that incorporating transportation enhances machine utilization across factories by alleviating bottlenecks, ultimately improving overall efficiency and reducing makespan. Besides, we are able to quantify the trade-off between transport times and the benefits of inter-factory transportation.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"1 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142670555","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-28DOI: 10.1016/j.ejor.2024.10.022
Fadillah Ramadhan, Chandra Ade Irawan, Said Salhi, Zhao Cai
This paper presents an optimization model to distribute logistical items from a warehouse to shelters in the case of humanitarian flood disaster relief. The model utilizes three transportation modes, namely, a truck, a drone, and an inflatable boat. We refer to this problem as the Traveling Salesman Problem with Drone and Boat (TSP-DB). The truck acts as a mothership vehicle, carrying a drone and a boat. Shelters in the dry area can be served by truck and drone, while those in the flooded area can be accessed by boat and drone. The drone and boat are deployed from the truck to deliver items to shelters. Due to the limited capacity and the high relative demand at a shelter, the drone can only make one visit at a time before returning to the truck, while the boat can perform multiple visits in a single trip. The objective is to minimize the completion time. The proposed problem is first modeled using mixed integer linear programming. As the problem is hard to solve exactly, especially for relatively larger instances, an effective matheuristic that combines an exact method and the metaheuristic record-to-record travel algorithm is then proposed. The performance of the proposed approach is assessed using generated and benchmark instances. The results reveal that our method is robust and competitive when compared against existing state-of-the-art methods on related traveling salesman problems with drones. The proposed method is also applied to a real case study in Jakarta, Indonesia, where interesting and valuable managerial insights are discussed and analyzed.
{"title":"The truck traveling salesman problem with drone and boat for humanitarian relief distribution in flood disaster: Mathematical model and solution methods","authors":"Fadillah Ramadhan, Chandra Ade Irawan, Said Salhi, Zhao Cai","doi":"10.1016/j.ejor.2024.10.022","DOIUrl":"https://doi.org/10.1016/j.ejor.2024.10.022","url":null,"abstract":"This paper presents an optimization model to distribute logistical items from a warehouse to shelters in the case of humanitarian flood disaster relief. The model utilizes three transportation modes, namely, a truck, a drone, and an inflatable boat. We refer to this problem as the Traveling Salesman Problem with Drone and Boat (TSP-DB). The truck acts as a mothership vehicle, carrying a drone and a boat. Shelters in the dry area can be served by truck and drone, while those in the flooded area can be accessed by boat and drone. The drone and boat are deployed from the truck to deliver items to shelters. Due to the limited capacity and the high relative demand at a shelter, the drone can only make one visit at a time before returning to the truck, while the boat can perform multiple visits in a single trip. The objective is to minimize the completion time. The proposed problem is first modeled using mixed integer linear programming. As the problem is hard to solve exactly, especially for relatively larger instances, an effective matheuristic that combines an exact method and the metaheuristic record-to-record travel algorithm is then proposed. The performance of the proposed approach is assessed using generated and benchmark instances. The results reveal that our method is robust and competitive when compared against existing state-of-the-art methods on related traveling salesman problems with drones. The proposed method is also applied to a real case study in Jakarta, Indonesia, where interesting and valuable managerial insights are discussed and analyzed.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"18 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142670557","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The Multilinear Target-based Preference Functions (MTPFs) support multi-attribute decision problems characterized by attribute interactions and targets. However, existing research falls short in flexibly modeling high-dimensional interactions and lacks robustness in decision-making recommendations when faced with uncertain parameters and targets. The paper proposes a robust multilinear target-based decision analysis framework considering high-dimensional interactions, along with uncertainties in parameters and targets. First, the necessity of high-dimensional interactions and the limitations of available MTPFs in modeling high-dimensional interactions are demonstrated. Second, the MTPFs based on the 2-interactive fuzzy measure and the Nonmodularity index are proposed to model the high-dimensional interactions and simultaneously reduce the computational challenges of parameter identification. Third, new descriptive measures are proposed based on the Stochastic Multicriteria Acceptability Analysis to evaluate the robustness of decision recommendations subject to uncertain targets and parameters. The validation and advantages of the framework are illustrated with simulation studies and an application in customer competitive evaluation of smart thermometer patches.
{"title":"Robust multilinear target-based decision analysis considering high-dimensional interactions","authors":"Qiong Feng, Shurong Tong, Salvatore Corrente, Xinwei Zhang","doi":"10.1016/j.ejor.2024.10.036","DOIUrl":"https://doi.org/10.1016/j.ejor.2024.10.036","url":null,"abstract":"The Multilinear Target-based Preference Functions (MTPFs) support multi-attribute decision problems characterized by attribute interactions and targets. However, existing research falls short in flexibly modeling high-dimensional interactions and lacks robustness in decision-making recommendations when faced with uncertain parameters and targets. The paper proposes a robust multilinear target-based decision analysis framework considering high-dimensional interactions, along with uncertainties in parameters and targets. First, the necessity of high-dimensional interactions and the limitations of available MTPFs in modeling high-dimensional interactions are demonstrated. Second, the MTPFs based on the 2-interactive fuzzy measure and the Nonmodularity index are proposed to model the high-dimensional interactions and simultaneously reduce the computational challenges of parameter identification. Third, new descriptive measures are proposed based on the Stochastic Multicriteria Acceptability Analysis to evaluate the robustness of decision recommendations subject to uncertain targets and parameters. The validation and advantages of the framework are illustrated with simulation studies and an application in customer competitive evaluation of smart thermometer patches.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"250 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142670554","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-25DOI: 10.1016/j.ejor.2024.10.024
Chiang Kao, Shiang-Tai Liu
Shared input occurs often when a production system performs two or more functions and some of the functions share the same input. To determine the proportion of the shared input devoted to each function, the conventional data envelopment analysis (DEA) models that allow each decision making unit (DMU) to select the most favorable value to attain the highest efficiency score is usually used. The result is that many DMUs assign proportions of different bound values to the same function, which is not reasonable. This paper proposes a compromise solution approach that aggregates the viewpoints of all DMUs to obtain a consensus regarding the proportion of the shared input used by each function. The approach is actually a parametric DEA approach for constructing the production function. To increase the explanation power, transcendental functions are considered. The tourist hotel, where the accommodation and catering functions share the input of management employees is used for illustration. The results show that a transcendental function has stronger explanation power, and reasonable compromised values for the proportions of the effort of the management employees devoted to the two functions are obtained.
当一个生产系统执行两个或多个功能，其中一些功能共享相同的投入时，往往会出现共享投入。传统的数据包络分析（DEA）模型允许每个决策单元（DMU）选择最有利的值，以获得最高的效率得分。其结果是，许多 DMU 为同一功能分配了不同约束值的比例，这并不合理。本文提出了一种折中解决方案，即汇总所有 DMU 的观点，就各功能使用的共享输入比例达成共识。该方法实际上是一种构建生产函数的参数 DEA 方法。为了增加解释力，考虑了超越函数。以旅游酒店为例进行说明，其中住宿和餐饮职能共享管理员工的投入。结果表明，超越函数具有更强的解释力，并得到了管理员工在两个职能上投入精力比例的合理折衷值。
{"title":"A compromise solution approach for efficiency measurement with shared input: The case of tourist hotels in Taiwan","authors":"Chiang Kao, Shiang-Tai Liu","doi":"10.1016/j.ejor.2024.10.024","DOIUrl":"https://doi.org/10.1016/j.ejor.2024.10.024","url":null,"abstract":"Shared input occurs often when a production system performs two or more functions and some of the functions share the same input. To determine the proportion of the shared input devoted to each function, the conventional data envelopment analysis (DEA) models that allow each decision making unit (DMU) to select the most favorable value to attain the highest efficiency score is usually used. The result is that many DMUs assign proportions of different bound values to the same function, which is not reasonable. This paper proposes a compromise solution approach that aggregates the viewpoints of all DMUs to obtain a consensus regarding the proportion of the shared input used by each function. The approach is actually a parametric DEA approach for constructing the production function. To increase the explanation power, transcendental functions are considered. The tourist hotel, where the accommodation and catering functions share the input of management employees is used for illustration. The results show that a transcendental function has stronger explanation power, and reasonable compromised values for the proportions of the effort of the management employees devoted to the two functions are obtained.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"22 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142670561","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-24DOI: 10.1016/j.ejor.2024.10.027
Fang Wang, Hengjie Zhang, Jigan Wang
Strategic behavior is common in multi-criteria sorting, where manipulated alternatives are allocated to the target category to achieve the intended goal. Engaging in such strategic behavior in sorting consensus often comes at a cost, which is closely tied to the degree of preference adjustments and the level of trust relationships among decision makers. This study investigates strategic behavior using piecewise cost-based consensus mechanism in social trust network. Firstly, the trust relationship dependent piecewise cost is formally defined and formulated by considering the impact of trust relationship on the preference adjustments willingness to achieve sorting consensus. Then, based on the trust relationship dependent piecewise cost, a preference strategic manipulation model is proposed to achieve strategic behavior in sorting consensus, which is implemented by minimizing the cost of strategically guiding decision makers in adjusting their preferences. Considering that social trust network affects strategic manipulation, a preference-network collaborative strategic manipulation model is further proposed, which is designed to strategically guide decision makers in adjusting both their preferences and social trust networks. Moreover, the practicality of proposed strategic manipulation models is exemplified through a case study on supply chain risk management and their performance is validated via simulation analysis.
{"title":"Strategic behavior in multi-criteria sorting with trust relationships-based consensus mechanism: Application in supply chain risk management","authors":"Fang Wang, Hengjie Zhang, Jigan Wang","doi":"10.1016/j.ejor.2024.10.027","DOIUrl":"https://doi.org/10.1016/j.ejor.2024.10.027","url":null,"abstract":"Strategic behavior is common in multi-criteria sorting, where manipulated alternatives are allocated to the target category to achieve the intended goal. Engaging in such strategic behavior in sorting consensus often comes at a cost, which is closely tied to the degree of preference adjustments and the level of trust relationships among decision makers. This study investigates strategic behavior using piecewise cost-based consensus mechanism in social trust network. Firstly, the trust relationship dependent piecewise cost is formally defined and formulated by considering the impact of trust relationship on the preference adjustments willingness to achieve sorting consensus. Then, based on the trust relationship dependent piecewise cost, a preference strategic manipulation model is proposed to achieve strategic behavior in sorting consensus, which is implemented by minimizing the cost of strategically guiding decision makers in adjusting their preferences. Considering that social trust network affects strategic manipulation, a preference-network collaborative strategic manipulation model is further proposed, which is designed to strategically guide decision makers in adjusting both their preferences and social trust networks. Moreover, the practicality of proposed strategic manipulation models is exemplified through a case study on supply chain risk management and their performance is validated via simulation analysis.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"11 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142670559","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-24DOI: 10.1016/j.ejor.2024.10.031
Raziyeh Reza-Gharehbagh, Moutaz Khouja, Ramzi Hammami
A new practice among online retail platforms, e.g., Amazon and Wayfair, is to offer their own private label product and a substitutable exclusive manufacturer product. We employ a game theoretic approach to examine conditions under which a retailer and a manufacturer find it optimal to enter into such a partnership. Our analysis reveals that a retailer finds it profitable to partner with a manufacturer with one of two profiles. The first is a manufacturer with low unit production and holding costs and large capacity, and the retailer gives the manufacturer most of the market share. In this case, the retailer uses a low private product price and marketing effort to pressure the manufacturer to set a low exclusive product price, which increases the manufacturer's revenue and the retailer's fees. The second is a manufacturer with a large consumer base, high unit production and holding costs, and small capacity. For this profile, the retailer takes most of the market share by offering a low private product price, and the manufacturer is unable to counteract the retailer's low private product price and marketing effort. The partnership results in a lower price when the marketing effort is costly and the retailer relies on private product price, intensifying price competition. Under some conditions, the retailer's profit may decrease in his share of the manufacturer's revenue. Also, the retailer may increase the marketing effort and decrease the private product price, not to take market share, but to pressure the manufacturer to decrease price.
{"title":"Retailer-manufacturer partnerships in E-commerce: Dual product strategy and market share dynamics","authors":"Raziyeh Reza-Gharehbagh, Moutaz Khouja, Ramzi Hammami","doi":"10.1016/j.ejor.2024.10.031","DOIUrl":"https://doi.org/10.1016/j.ejor.2024.10.031","url":null,"abstract":"A new practice among online retail platforms, e.g., Amazon and Wayfair, is to offer their own private label product and a substitutable exclusive manufacturer product. We employ a game theoretic approach to examine conditions under which a retailer and a manufacturer find it optimal to enter into such a partnership. Our analysis reveals that a retailer finds it profitable to partner with a manufacturer with one of two profiles. The first is a manufacturer with low unit production and holding costs and large capacity, and the retailer gives the manufacturer most of the market share. In this case, the retailer uses a low private product price and marketing effort to pressure the manufacturer to set a low exclusive product price, which increases the manufacturer's revenue and the retailer's fees. The second is a manufacturer with a large consumer base, high unit production and holding costs, and small capacity. For this profile, the retailer takes most of the market share by offering a low private product price, and the manufacturer is unable to counteract the retailer's low private product price and marketing effort. The partnership results in a lower price when the marketing effort is costly and the retailer relies on private product price, intensifying price competition. Under some conditions, the retailer's profit may decrease in his share of the manufacturer's revenue. Also, the retailer may increase the marketing effort and decrease the private product price, not to take market share, but to pressure the manufacturer to decrease price.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"46 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142670558","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-21DOI: 10.1016/j.ejor.2024.10.020
Jakob Schulte, Daniel Wetzel
We introduce a novel two-phase matheuristic for assignment and truck loading. The scope of our approach involves scenarios with an extensive amount of items requiring assignment to a heterogeneous fleet of trucks and subsequent transportation. A distinguishing feature of our matheuristic lies in the fact that the complex underlying problem is divided into subproblems which later are merged into a global solution. The proposed matheuristic tackles the assignment problem in its first phase, followed by a complex truck loading algorithm to validate the assignment solution in the second phase. This enables the identification of optimal solutions and adaptability to diverse use cases. This approach is motivated by the ROADEF/EURO challenge 2022 and is awarded with the scientific prize of the challenge. We demonstrate superior performance on selected instances, showcasing the potential for significant cost reduction in Renault’s supply chains.
{"title":"Two-phase matheuristic for assignment and truck loading problems","authors":"Jakob Schulte, Daniel Wetzel","doi":"10.1016/j.ejor.2024.10.020","DOIUrl":"https://doi.org/10.1016/j.ejor.2024.10.020","url":null,"abstract":"We introduce a novel two-phase matheuristic for assignment and truck loading. The scope of our approach involves scenarios with an extensive amount of items requiring assignment to a heterogeneous fleet of trucks and subsequent transportation. A distinguishing feature of our matheuristic lies in the fact that the complex underlying problem is divided into subproblems which later are merged into a global solution. The proposed matheuristic tackles the assignment problem in its first phase, followed by a complex truck loading algorithm to validate the assignment solution in the second phase. This enables the identification of optimal solutions and adaptability to diverse use cases. This approach is motivated by the ROADEF/EURO challenge 2022 and is awarded with the scientific prize of the challenge. We demonstrate superior performance on selected instances, showcasing the potential for significant cost reduction in Renault’s supply chains.","PeriodicalId":55161,"journal":{"name":"European Journal of Operational Research","volume":"74 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142670560","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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