Pub Date : 2021-08-31DOI: 10.1142/s0217595921500378
Wei Wu, N. Katoh, A. Ikegami
In this paper, we introduce a mathematical programming model for solving a staff scheduling problem based on one-day duties (task patterns) of individual staff members. The model can accommodate various service types, management policies, and staff preferences. We first enumerate all feasible one-day duties and propose an iterated local search approach that incorporates various methodologies, including a size-reduction method and a very large-scale neighborhood search. For the very large-scale neighborhood search, we design a dynamic programming method that aims to find the most improved schedule and can be used in the rescheduling stage. Computational results show that the model and the proposed algorithm perform well for real-world instances in Japan.
{"title":"An Iterated Local Search Heuristic for the Staff Scheduling Problem for Part-Time Employees in Japan","authors":"Wei Wu, N. Katoh, A. Ikegami","doi":"10.1142/s0217595921500378","DOIUrl":"https://doi.org/10.1142/s0217595921500378","url":null,"abstract":"In this paper, we introduce a mathematical programming model for solving a staff scheduling problem based on one-day duties (task patterns) of individual staff members. The model can accommodate various service types, management policies, and staff preferences. We first enumerate all feasible one-day duties and propose an iterated local search approach that incorporates various methodologies, including a size-reduction method and a very large-scale neighborhood search. For the very large-scale neighborhood search, we design a dynamic programming method that aims to find the most improved schedule and can be used in the rescheduling stage. Computational results show that the model and the proposed algorithm perform well for real-world instances in Japan.","PeriodicalId":8478,"journal":{"name":"Asia Pac. J. Oper. Res.","volume":"52 3 1","pages":"2150037:1-2150037:20"},"PeriodicalIF":0.0,"publicationDate":"2021-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89169149","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-20DOI: 10.1142/s0217595921500354
Y. Barron
This paper investigates an [Formula: see text] continuous-review perishable inventory model with a stock-dependent Poisson demand process, full backordering (with an extension for lost sales) and uncertainty in lead time and shelf life. Four types of costs are considered: a fixed cost of an order and each outdated item; age-dependent costs of an item (i.e., holding and salvage costs), given by a function of its remaining shelf life; and a delay cost of a backlogged demand unit, which is a function of its delay duration. Applying the supplementary variable technique, we obtain the joint probability-density function of the number of items in the system and the remaining time and thereby obtain the optimal parameters minimizing the long-run average total cost. Numerical experiments show that supply chain profits are enhanced by integrating the age components into replenishment decisions, and ignoring the shelf age- and delay-dependent costs may result in a substantial loss (up to 25%). It further appeared that estimating the lead-time distribution by an exponential one is significantly more costly, in particular as the c.v. differs from 1. In contrast, an exponential shelf life may provide a good heuristic for other shelf-life distributions.
{"title":"A Replenishment Inventory Model with a Stock-Dependent Demand and Age-Stock-Dependent Cost Functions in a Random Environment","authors":"Y. Barron","doi":"10.1142/s0217595921500354","DOIUrl":"https://doi.org/10.1142/s0217595921500354","url":null,"abstract":"This paper investigates an [Formula: see text] continuous-review perishable inventory model with a stock-dependent Poisson demand process, full backordering (with an extension for lost sales) and uncertainty in lead time and shelf life. Four types of costs are considered: a fixed cost of an order and each outdated item; age-dependent costs of an item (i.e., holding and salvage costs), given by a function of its remaining shelf life; and a delay cost of a backlogged demand unit, which is a function of its delay duration. Applying the supplementary variable technique, we obtain the joint probability-density function of the number of items in the system and the remaining time and thereby obtain the optimal parameters minimizing the long-run average total cost. Numerical experiments show that supply chain profits are enhanced by integrating the age components into replenishment decisions, and ignoring the shelf age- and delay-dependent costs may result in a substantial loss (up to 25%). It further appeared that estimating the lead-time distribution by an exponential one is significantly more costly, in particular as the c.v. differs from 1. In contrast, an exponential shelf life may provide a good heuristic for other shelf-life distributions.","PeriodicalId":8478,"journal":{"name":"Asia Pac. J. Oper. Res.","volume":"52 1","pages":"2150035:1-2150035:40"},"PeriodicalIF":0.0,"publicationDate":"2021-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75020780","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-16DOI: 10.1142/s0217595921500366
T. Chetan, M. Jenamani, S. P. Sarmah
Iterative multi-attribute reverse auctions in practice create certain difficulties for both the buyer and participating bidders. While the buyer faces the problem of creating the right attribute weights, the bidders have difficulty in adjusting the attribute values in each round. In this paper, we present an iterative multi-attribute reverse auction mechanism based on integrated data envelopment analysis (DEA) and best–worst method (BWM) with an objective of reducing the intervention of the buyer in the determination of the winner and also easing up the preference elicitation process. Unlike the typical scoring auctions, the proposed mechanism does not require the buyer to estimate the characteristics of the participating sellers in order to determine the optimal scoring function. As there will be no other intervention from the buyer during the winner determination process, the proposed method makes the procurement process impartial and corruption-free. Besides solving the buyer’s problem, the proposed mechanism is also associated with an optimal bid determination method (OBDM) to assist the sellers in formulating improvised bids in iterative rounds of the auction. Simulation experiments show that the proposed OBDM benefits both the buyer and sellers. For the buyer, it provides higher expected utility and attribute values as per his preferences; for the seller, it gives a better expected profit and a higher probability of winning.
{"title":"Iterative Multi-Attribute Procurement Auction with Decision Support for Bid Formulation","authors":"T. Chetan, M. Jenamani, S. P. Sarmah","doi":"10.1142/s0217595921500366","DOIUrl":"https://doi.org/10.1142/s0217595921500366","url":null,"abstract":"Iterative multi-attribute reverse auctions in practice create certain difficulties for both the buyer and participating bidders. While the buyer faces the problem of creating the right attribute weights, the bidders have difficulty in adjusting the attribute values in each round. In this paper, we present an iterative multi-attribute reverse auction mechanism based on integrated data envelopment analysis (DEA) and best–worst method (BWM) with an objective of reducing the intervention of the buyer in the determination of the winner and also easing up the preference elicitation process. Unlike the typical scoring auctions, the proposed mechanism does not require the buyer to estimate the characteristics of the participating sellers in order to determine the optimal scoring function. As there will be no other intervention from the buyer during the winner determination process, the proposed method makes the procurement process impartial and corruption-free. Besides solving the buyer’s problem, the proposed mechanism is also associated with an optimal bid determination method (OBDM) to assist the sellers in formulating improvised bids in iterative rounds of the auction. Simulation experiments show that the proposed OBDM benefits both the buyer and sellers. For the buyer, it provides higher expected utility and attribute values as per his preferences; for the seller, it gives a better expected profit and a higher probability of winning.","PeriodicalId":8478,"journal":{"name":"Asia Pac. J. Oper. Res.","volume":"26 1","pages":"2150036:1-2150036:30"},"PeriodicalIF":0.0,"publicationDate":"2021-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81626462","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-06DOI: 10.1142/s0217595921500330
Qing-Na Li, Chi Zhang, Mengzhi Cao
Multidimensional scaling (MDS) is to recover a set of points by making use of noised pairwise Euclidean distances. In some situations, the observed Euclidean distances may contain large errors or even missing values. In such cases, the order of the distances is far more important than their magnitude. Non-metric multidimensional scaling (NMDS) is then to deal with this problem by taking use of the ordinal information. The challenge of NMDS is to tackle the large number of ordinal constraints on distances (for [Formula: see text] points, this will be of [Formula: see text]), which will slow down existing numerical algorithms. In this paper, we propose an ordinal weighted Euclidean distance matrix model for NMDS. By designing an ordinal weighted matrix, we get rid of the large number of ordinal constraints and tackle the ordinal constraints in a soft way. We then apply our model to image ranking. The key insight is to view the image ranking problem as NMDS in the kernel space. We conduct extensive numerical test on two state-of-the-art datasets: FG-NET aging dataset and MSRA-MM dataset. The results show the improvement of the proposed approach over the existing methods.
{"title":"An Ordinal Weighted EDM Model for Nonmetric Multidimensional Scaling","authors":"Qing-Na Li, Chi Zhang, Mengzhi Cao","doi":"10.1142/s0217595921500330","DOIUrl":"https://doi.org/10.1142/s0217595921500330","url":null,"abstract":"Multidimensional scaling (MDS) is to recover a set of points by making use of noised pairwise Euclidean distances. In some situations, the observed Euclidean distances may contain large errors or even missing values. In such cases, the order of the distances is far more important than their magnitude. Non-metric multidimensional scaling (NMDS) is then to deal with this problem by taking use of the ordinal information. The challenge of NMDS is to tackle the large number of ordinal constraints on distances (for [Formula: see text] points, this will be of [Formula: see text]), which will slow down existing numerical algorithms. In this paper, we propose an ordinal weighted Euclidean distance matrix model for NMDS. By designing an ordinal weighted matrix, we get rid of the large number of ordinal constraints and tackle the ordinal constraints in a soft way. We then apply our model to image ranking. The key insight is to view the image ranking problem as NMDS in the kernel space. We conduct extensive numerical test on two state-of-the-art datasets: FG-NET aging dataset and MSRA-MM dataset. The results show the improvement of the proposed approach over the existing methods.","PeriodicalId":8478,"journal":{"name":"Asia Pac. J. Oper. Res.","volume":"47 1","pages":"2150033:1-2150033:22"},"PeriodicalIF":0.0,"publicationDate":"2021-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81803351","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-06DOI: 10.1142/s0217595921500391
Dan Li, Shuang Chen, Liping Pang
A class of proximal gradient-type algorithm for bilevel nonlinear nondifferentiable programming problems with smooth substructure is developed in this paper. The original problem is approximately reformulated by explicit slow control technique to a parameterized family function which makes full use of the information of smoothness. At each iteration, we only need to calculate one proximal point analytically or with low computational cost. We prove that the accumulation iterations generated by the algorithms are solutions of the original problem. Moreover, some results of complexity of the algorithms are presented in convergence analysis. Numerical experiments are implemented to verify the efficiency of the proximal gradient algorithms for solving this kind of bilevel programming problems.
{"title":"Proximal Gradient-Type Algorithms for a Class of Bilevel Programming Problems","authors":"Dan Li, Shuang Chen, Liping Pang","doi":"10.1142/s0217595921500391","DOIUrl":"https://doi.org/10.1142/s0217595921500391","url":null,"abstract":"A class of proximal gradient-type algorithm for bilevel nonlinear nondifferentiable programming problems with smooth substructure is developed in this paper. The original problem is approximately reformulated by explicit slow control technique to a parameterized family function which makes full use of the information of smoothness. At each iteration, we only need to calculate one proximal point analytically or with low computational cost. We prove that the accumulation iterations generated by the algorithms are solutions of the original problem. Moreover, some results of complexity of the algorithms are presented in convergence analysis. Numerical experiments are implemented to verify the efficiency of the proximal gradient algorithms for solving this kind of bilevel programming problems.","PeriodicalId":8478,"journal":{"name":"Asia Pac. J. Oper. Res.","volume":"64 1","pages":"2150039:1-2150039:17"},"PeriodicalIF":0.0,"publicationDate":"2021-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90256241","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-06DOI: 10.1142/s0217595921400327
Liu Yang, Yuanyuan Zheng, Jia-wen Fan, Shaozeng Dong
The development of emerging technologies, such as advanced information system, social media, and blockchain, has significantly changed consumers’ behaviors in relation to online purchase. Having access to the historical price information, consumers are able to compare the current price with the historical prices and may raise fairness concerns in the comparison process. We investigate the impacts of consumers’ fairness concerns on retailers’ pricing strategies in a two-stage model. We show that when the retailer uses uniform pricing strategy, consumers’ fairness concerns induce the retailer to decrease product price. As a consequence, the market demand expands and the retailer’s profit reduces. When the retailer adopts multi-stage pricing strategy, we find that consumers’ fairness concerns are not always harmful to the retailer’s profit. Under certain conditions, the retailer can benefit from consumers’ fairness concerns. Particularly, the product price in the first period increases, but the price in the second period and the market demand could be increased or decreased, depending on the situations.
{"title":"Online Pricing Strategy with Considering Consumers' Fairness Concerns","authors":"Liu Yang, Yuanyuan Zheng, Jia-wen Fan, Shaozeng Dong","doi":"10.1142/s0217595921400327","DOIUrl":"https://doi.org/10.1142/s0217595921400327","url":null,"abstract":"The development of emerging technologies, such as advanced information system, social media, and blockchain, has significantly changed consumers’ behaviors in relation to online purchase. Having access to the historical price information, consumers are able to compare the current price with the historical prices and may raise fairness concerns in the comparison process. We investigate the impacts of consumers’ fairness concerns on retailers’ pricing strategies in a two-stage model. We show that when the retailer uses uniform pricing strategy, consumers’ fairness concerns induce the retailer to decrease product price. As a consequence, the market demand expands and the retailer’s profit reduces. When the retailer adopts multi-stage pricing strategy, we find that consumers’ fairness concerns are not always harmful to the retailer’s profit. Under certain conditions, the retailer can benefit from consumers’ fairness concerns. Particularly, the product price in the first period increases, but the price in the second period and the market demand could be increased or decreased, depending on the situations.","PeriodicalId":8478,"journal":{"name":"Asia Pac. J. Oper. Res.","volume":"111 1","pages":"2140032:1-2140032:23"},"PeriodicalIF":0.0,"publicationDate":"2021-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84879898","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-07-27DOI: 10.1142/s0217595921400340
Ying Zhang, Zhaoyang Zhang, Yingtao Xu
In this paper, we consider a class of optimal control problems involving continuous control and state inequality constraints where the control is almost smooth. We first employ the control parametrization technique via approximating the control signal by a piecewise linear function. Then, we develop a time scaling transformation procedure for transforming the approximate problem into an equivalent problem that can be solved readily using conventional methods. On this basis, a novel exact penalty function method is constructed by appending penalized constraint violations to the cost function. The gradient formulas and convergent properties ensure that the transformed unconstrained optimal parameter selection problems can be solved by existing optimization algorithms or software packages. Finally, an example is solved showing the effectiveness and applicability of the approach proposed.
{"title":"A Computational Approach to Optimal Control Problems with Almost Smooth Controls","authors":"Ying Zhang, Zhaoyang Zhang, Yingtao Xu","doi":"10.1142/s0217595921400340","DOIUrl":"https://doi.org/10.1142/s0217595921400340","url":null,"abstract":"In this paper, we consider a class of optimal control problems involving continuous control and state inequality constraints where the control is almost smooth. We first employ the control parametrization technique via approximating the control signal by a piecewise linear function. Then, we develop a time scaling transformation procedure for transforming the approximate problem into an equivalent problem that can be solved readily using conventional methods. On this basis, a novel exact penalty function method is constructed by appending penalized constraint violations to the cost function. The gradient formulas and convergent properties ensure that the transformed unconstrained optimal parameter selection problems can be solved by existing optimization algorithms or software packages. Finally, an example is solved showing the effectiveness and applicability of the approach proposed.","PeriodicalId":8478,"journal":{"name":"Asia Pac. J. Oper. Res.","volume":"104 1","pages":"2140034:1-2140034:20"},"PeriodicalIF":0.0,"publicationDate":"2021-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75972845","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-07-27DOI: 10.1142/s0217595921500408
Hailiu Shi, Shengqun Chen, Yingming Wang, Yan Huang
According to the management by objectives (MBO) theory, performance evaluations should take into account the achievement of management objectives (MOs). The most commonly used performance evaluation method — the cross-efficiency evaluation method — seldom considers the role of MOs as a reference point. According to the prospect theory, decision-makers underestimate the benefits that exceed the reference point; they also exaggerate the losses that fall below the reference point. This irrational psychology is more obvious when evaluating the performance evaluation of peers. As such, this paper proposes a cross-efficiency evaluation method based on prospect theory, which takes MOs as a reference point from a peer perspective. First, taking MOs as reference points, a decision-making unit (DMU) chooses a set of weights for each peer, in order to maximize or minimize the prospects of the peer, according to the benevolent or aggressive attitude of the DMU. In order to improve the adaptability of the method, the precise number of MOs is further extended to be an interval number. Finally, the relationship between models, which are based on precise MOs and interval MOs, is illustrated by propositions. Finally, numerical examples are provided to illustrate the applications of the proposed cross-efficiency evaluation method.
根据目标管理(MBO)理论，绩效评价应考虑管理目标的实现情况。目前最常用的绩效评价方法——交叉效率评价方法，很少考虑组织管理组织作为参考点的作用。根据前景理论，决策者低估了超过参考点的收益;他们还夸大了低于参考点的损失。这种非理性心理在评价同伴的绩效评价时表现得更为明显。为此，本文提出了一种基于前景理论的交叉效率评价方法，该方法从同行视角出发，以最大收益为参考点。首先，决策单元(decision-making unit, DMU)以MOs为参考点，根据决策单元的仁慈态度或攻击性态度，为每个同伴选择一组权重，以最大化或最小化同伴的前景。为了提高该方法的适应性，将MOs的精确数进一步扩展为区间数。最后，用命题说明了基于精确模态和区间模态的模型之间的关系。最后，通过数值算例说明了交叉效率评价方法的应用。
{"title":"Cross-Efficiency Evaluation Method Taking Management Objectives as Reference Points from Peer Perspective","authors":"Hailiu Shi, Shengqun Chen, Yingming Wang, Yan Huang","doi":"10.1142/s0217595921500408","DOIUrl":"https://doi.org/10.1142/s0217595921500408","url":null,"abstract":"According to the management by objectives (MBO) theory, performance evaluations should take into account the achievement of management objectives (MOs). The most commonly used performance evaluation method — the cross-efficiency evaluation method — seldom considers the role of MOs as a reference point. According to the prospect theory, decision-makers underestimate the benefits that exceed the reference point; they also exaggerate the losses that fall below the reference point. This irrational psychology is more obvious when evaluating the performance evaluation of peers. As such, this paper proposes a cross-efficiency evaluation method based on prospect theory, which takes MOs as a reference point from a peer perspective. First, taking MOs as reference points, a decision-making unit (DMU) chooses a set of weights for each peer, in order to maximize or minimize the prospects of the peer, according to the benevolent or aggressive attitude of the DMU. In order to improve the adaptability of the method, the precise number of MOs is further extended to be an interval number. Finally, the relationship between models, which are based on precise MOs and interval MOs, is illustrated by propositions. Finally, numerical examples are provided to illustrate the applications of the proposed cross-efficiency evaluation method.","PeriodicalId":8478,"journal":{"name":"Asia Pac. J. Oper. Res.","volume":"66 1","pages":"2150040:1-2150040:26"},"PeriodicalIF":0.0,"publicationDate":"2021-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83830665","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-07-27DOI: 10.1142/s0217595921400339
Qiongyi Zheng, Bin Hu, T. Fan, Chang Xu, Xiaolong Li
This paper focuses on the impact of radio-frequency identification (RFID) technology adoption on supply chain coordination. We consider a three-tier supply chain consisting of one supplier, one transporter and one retailer with centralized and decentralized decision-making. Considering the factors of RFID tag cost and product freshness, two scenarios — with RFID and without RFID — are analyzed. In the decentralized supply chain, a revenue-sharing contract is established to explore each partner’s decisions on ordering quantity, wholesale price and profits. The results show that (1) the tag cost of RFID has different effects on the pricing decisions, ordering quantity and profit of an FPSC, and if the amount of transportation time compression increases, the range of the tag cost’s boundary value will be wider when adopting RFID technology; (2) when the members of an FPSC choose the optimal wholesale price, optimal initial fare and appropriate revenue-sharing coefficient, the FPSC can achieve a win–win result; and (3) the amount of transportation time compression has a positive correlation with the expected profit of the supplier, transporter and retailer but has a negative correlation with loss of the product.
{"title":"Impact of RFID Technology on Coordination of a Three-Tier Fresh Product Supply Chain","authors":"Qiongyi Zheng, Bin Hu, T. Fan, Chang Xu, Xiaolong Li","doi":"10.1142/s0217595921400339","DOIUrl":"https://doi.org/10.1142/s0217595921400339","url":null,"abstract":"This paper focuses on the impact of radio-frequency identification (RFID) technology adoption on supply chain coordination. We consider a three-tier supply chain consisting of one supplier, one transporter and one retailer with centralized and decentralized decision-making. Considering the factors of RFID tag cost and product freshness, two scenarios — with RFID and without RFID — are analyzed. In the decentralized supply chain, a revenue-sharing contract is established to explore each partner’s decisions on ordering quantity, wholesale price and profits. The results show that (1) the tag cost of RFID has different effects on the pricing decisions, ordering quantity and profit of an FPSC, and if the amount of transportation time compression increases, the range of the tag cost’s boundary value will be wider when adopting RFID technology; (2) when the members of an FPSC choose the optimal wholesale price, optimal initial fare and appropriate revenue-sharing coefficient, the FPSC can achieve a win–win result; and (3) the amount of transportation time compression has a positive correlation with the expected profit of the supplier, transporter and retailer but has a negative correlation with loss of the product.","PeriodicalId":8478,"journal":{"name":"Asia Pac. J. Oper. Res.","volume":"10 1","pages":"2140033:1-2140033:30"},"PeriodicalIF":0.0,"publicationDate":"2021-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82005960","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-07-16DOI: 10.1142/S0217595921400315
Yong He, Yanan Yu, Zhongyuan Wang, Henry Xu
Online-to-Offline service platforms are rising with the development of e-commerce and the increasing need for service. Taking the hospitality and tourism industries as typical examples, this paper considers a platform service supply chain, where a leading hotel is responsible for offline service, and a following platform is in charge of pricing, online service, and advertising investment. Three decision modes (i.e., decentralized, cost-sharing, and integrated) for the platform service supply chain are investigated. We derive the optimal service levels for the hotel and the platform, advertising investment, and retail price in each mode. Our analyses indicate that perceived service quality and brand image vary over time, and they gradually converge to a steady-state. The cost-sharing mode can be achieved if the hotel can obtain enough profit per unit. Once the cost-sharing mode is achieved, it can help improve perceived service quality and brand image, which further increases both the hotel and the platform’s profits. However, the integrated mode generates the best-perceived service quality, brand image, supply chain performance, and the lowest price.
{"title":"Equilibrium Pricing, Advertising, and Quality Strategies in a Platform Service Supply Chain","authors":"Yong He, Yanan Yu, Zhongyuan Wang, Henry Xu","doi":"10.1142/S0217595921400315","DOIUrl":"https://doi.org/10.1142/S0217595921400315","url":null,"abstract":"Online-to-Offline service platforms are rising with the development of e-commerce and the increasing need for service. Taking the hospitality and tourism industries as typical examples, this paper considers a platform service supply chain, where a leading hotel is responsible for offline service, and a following platform is in charge of pricing, online service, and advertising investment. Three decision modes (i.e., decentralized, cost-sharing, and integrated) for the platform service supply chain are investigated. We derive the optimal service levels for the hotel and the platform, advertising investment, and retail price in each mode. Our analyses indicate that perceived service quality and brand image vary over time, and they gradually converge to a steady-state. The cost-sharing mode can be achieved if the hotel can obtain enough profit per unit. Once the cost-sharing mode is achieved, it can help improve perceived service quality and brand image, which further increases both the hotel and the platform’s profits. However, the integrated mode generates the best-perceived service quality, brand image, supply chain performance, and the lowest price.","PeriodicalId":8478,"journal":{"name":"Asia Pac. J. Oper. Res.","volume":"693 1","pages":"2140031:1-2140031:33"},"PeriodicalIF":0.0,"publicationDate":"2021-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89787832","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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