Supply Chain Management

Distributionally Robust Facility Location Problem under Decision-dependent Stochastic Demand

  • Shabbir Ahmed
  • Siqian Shen
  • Beste Basciftci
    • Categories Robust Optimization, Supply Chain Management

    Facility location decisions significantly impact customer behavior and consequently the resulting demand in a wide range of businesses. Furthermore, sequentially realized uncertain demand enforces strategically determining locations under partial information. To address these issues, we study a facility location problem where the distribution of customer demand is dependent on location decisions. We represent moment information … Read more

    A bi-level branch-and-bound algorithm for the capacitated competitive facility location problem

  • Hadi Charkhgard
  • Vahid Mahmoodian
  • Yu Zhang
    • Categories Branch and Cut Algorithms, Supply Chain Management Tags , , ,

    Competitive facility location problem is a typical facility locating optimization problem but in a competitive environment. The main characteristic of this problem is the competitive nature of the market. In essence, the problem involves two competitors, i.e., a leader and a follower, who seek to attract customers by establishing new facilities to maximize their own … Read more

    Order Acceptance in Same-Day Delivery

  • Alan L. Erera
  • Mathias A. Klapp
  • Alejandro Toriello
    • Categories Supply Chain Management Tags ,

    We study order acceptance dynamics in same-day delivery systems by formulating the Dynamic Dispatch Waves Problem with Immediate Acceptance, which models integrated request management and order distribution for dynamically arriving requests. When a delivery request arrives, a decision is made immediately to accept (offer service) or reject (with a penalty). Accepted requests are not available … Read more

    Strategic Network Design for Parcel Delivery with Drones under Competition

  • Gohram Baloch
  • Fatma Gzara
    • Categories (Mixed) Integer Nonlinear Programming, Supply Chain Management, Transportation

    This paper studies the economic desirability of UAV parcel delivery and its e ect on e-retailer distribution network while taking into account technological limitations, government regulations, and customer behavior. We consider an e-retailer o ering multiple same day delivery services including a fast UAV service and develop a distribution network design formulation under service based competition where … Read more

    The Nutritious Supply Chain: Optimizing Humanitarian Food Aid

  • Dick den Hertog
  • Ozlem Ergun
  • R Goncalves
  • K Peters
  • H Fleuren
  • M Freeman
  • M Kavelj
  • S Silva
    • Categories Supply Chain Management

    The World Food Programme (WFP) is the largest humanitarian agency fighting hunger worldwide, reaching around 90 million people with food assistance in 80 countries each year. To deal with the operational complexities inherent in its mandate, WFP has been developing tools to assist its decision makers with integrating supply chain decisions across departments and functional … Read more

    Pricing for Delivery Time Flexibility

  • Martin Savelsbergh
  • Barış Yıldız
    • Categories Dynamic Programming, Supply Chain Management, Transportation Tags , , , ,

    We study a variant of the multi-period vehicle routing problem, in which a service provider offers a discount to customer in exchange for delivery flexibility. We establish theoretical properties and empirical insights regarding the intricate and complex relation between the benefit from additional delivery flexibility, the discounts offered to customers to gain additional delivery flexibility, … Read more

    A Decomposition Heuristic for Mixed-Integer Supply Chain Problems

  • Lars Schewe
  • Martin Schmidt
  • Dieter Weninger
    • Categories (Mixed) Integer Linear Programming, Supply Chain Management Tags , , , ,

    Mixed-integer supply chain models typically are very large but are also very sparse and can be decomposed into loosely coupled blocks. In this paper, we use general-purpose techniques to obtain a block decomposition of supply chain instances and apply a tailored penalty alternating direction method, which exploits the structural properties of the decomposed instances. We … Read more

    Risk Aversion to Parameter Uncertainty in Markov Decision Processes with an Application to Slow-Onset Disaster Relief

  • Simge Küçükyavuz
  • Merve Merakli
    • Categories Integer Programming, Stochastic Programming, Supply Chain Management Tags , , , , ,

    In classical Markov Decision Processes (MDPs), action costs and transition probabilities are assumed to be known, although an accurate estimation of these parameters is often not possible in practice. This study addresses MDPs under cost and transition probability uncertainty and aims to provide a mathematical framework to obtain policies minimizing the risk of high long-term … Read more

    Policies for Inventory Models with Product Returns Forecast from Past Demands and Past Sales

  • Mabel C. Chou
  • Chee-Khian Sim
  • Xiao-Ming Yuan
    • Categories Dynamic Programming, Supply Chain Management

    Finite horizon periodic review backlog models are considered in this paper for an inventory system that remanufactures two types of cores: buyback cores and normal cores. Returns of used products as buyback cores are modelled to depend on past demands and past sales. We obtain an optimal inventory policy for the model in which returns … Read more

    Analysis of Process Flexibility Designs under Disruptions

  • Hoda Bidkhori
  • Oleg A. Prokopyev
  • Erfan Mehmanchi
    • Categories Production and Logistics, Robust Optimization, Supply Chain Management Tags , , , ,

    Most of the previous studies of process flexibility designs have focused on expected sales and demand uncertainty. In this paper, we examine the worst-case performance of flexibility designs in the case of demand and supply uncertainties, where the latter can be in the form of either plant or arc disruptions. We define the Plant Cover … Read more