Assessment of systemic vulnerabilities in container shipping networks with consideration of transhipment

The global container shipping network is vital to international trade. Current techniques for its vulnerability assessment are constrained due to the lack of historical disruption data and computational limitations due to typical network sizes. We address these modelling challenges by developing a new framework, composed by game-theoretic attacker-defender model and a cost-based container assignment model … Read more

Coordination of a two-level supply chain with contracts

We consider the coordination of planning decisions of a single product in a supply chain composed of one supplier and one retailer, by using contracts. We assume that the retailer has the market power: he can impose his optimal replenishment plan to the supplier. Our aim is to minimize the supplier’s cost without increasing the … Read more

Acyclic Mechanism Design for Freight Consolidation

Freight consolidation is a logistics practice that improves the cost-effectiveness and efficiency of transportation operations, and also reduces energy consumption and carbon footprint. A “fair” shipping cost sharing scheme is indispensable to help establish and sustain the cooperation of a group of suppliers in freight consolidation. In this paper, we design a truthful acyclic mechanism … Read more

Global Optimisation of Multi-Plant Manganese Alloy Production

This paper studies the problem of multi-plant manganese alloy production. The problem consists of finding the optimal furnace feed of ores, fluxes, coke, and slag that yields output products which meet customer specifications, and to optimally decide the volume, composition, and allocation of the slag. To solve the problem, a nonlinear pooling problem formulation is … Read more

Time inconsistency of optimal policies of distributionally robust inventory models

In this paper, we investigate optimal policies of distributionally robust (risk averse) inventory models. We demonstrate that if the respective risk measures are not strictly monotone, then there may exist infinitely many optimal policies which are not base-stock and not time consistent. This is in a sharp contrast with the risk neutral formulation of the … Read more

Joint Inventory and Revenue Management with Removal Decisions

We study the problem of a retailer that maximizes profit through joint replenishment, pricing and removal decisions. This problem is motivated by the observation that retailers usually retain rights to remove inventory from their network either by returning it to the suppliers or through liquidation in the face of random demand and capacity constraints. We … Read more

Toward breaking the curse of dimensionality: an FPTAS for stochastic dynamic programs with multidimensional action and scalar state

We propose a Fully Polynomial-Time Approximation Scheme (FPTAS) for stochastic dynamic programs with multidimensional action, scalar state, convex costs and linear state transition function. The action spaces are polyhedral and described by parametric linear programs. This type of problems finds applications in the area of optimal planning under uncertainty, and can be thought of as … Read more

Coordination of a two-level supply chain with contracts under complete or asymmetric information

We consider the coordination of planning decisions of a single product in a supply chain composed of one supplier and one retailer by using contracts. We assume that the retailer has the market power to impose his optimal replenishment plan to the supplier. Our concern is on the minimization of the supplier’s cost. In order … Read more

Tackling Industrial-Scale Supply Chain Problems by Mixed-Integer Programming

SAP’s decision support systems for optimized supply network planning rely on mixed-integer programming as the core engine to compute optimal or near-optimal solutions. The modeling flexibility and the optimality guarantees provided by mixed-integer programming greatly aid the design of a robust and future-proof decision support system for a large and diverse customer base. In this … Read more