Problem definition: Online food delivery (OFD) platforms have witnessed rapid global expansion, partly driven by shifts in consumer behavior during the COVID-19 pandemic. These enable customers to order conveniently from a diverse array of restaurants through their mobile phones. A core functionality these is algorithmic matching drivers orders, which focus our study as we aim optimize this driver-order process. Methodology/results: We formulate real-time algorithms that take into account...

Problem definition: International humanitarian organizations (IHOs) prepare a detailed annual allocation plan for operations that are conducted in the countries they serve. The is strongly affected by available financial budget. budget of IHOs derived from donations, which typically limited, uncertain, and to large extent earmarked specific or programs. These factors, together with utility function IHOs, render budgeting challenging managerial problem. In this paper, we develop an approach...

Every year, humanitarian organizations assign a sizable portion of their limited financial resources to procure, operate and maintain operating assets, without which service delivery would be nearly impossible. In this study, using vehicles represent we identify policies for sizing allocating operational capacity minimize the expected deprivation costs in development context. First, develop stochastic dynamic programming model, then an efficient heuristic policy that considers interaction...

We investigate a setting in which two rivals, an airline and railways, create value through new joint service that reduces the cancellation-risk of waitlisted passengers. This is motivated by recent collaboration between railway company low-cost airlines India. Under this arrangement, railways offers train ticket holders whose reservations are not confirmed option to upgrade flight on same route for additional fee. The sets price while charges referral commission. creates passengers thereby...

We study the problem of allocating supply under advance demand information. consider a company that must allocate limited inventory to different markets open sequentially. To reduce uncertainty, receives information and updates forecasts about its each time it makes an allocation decision. value optimal use this This research is motivated by agrifood manufacturer operates in several European countries. develop policy relaxed conditions efficient heuristic performs close optimally general...

Supplier selections are complex but nonetheless strategically important decisions that influenced by numerous factors. Drawing on the resource‐based and relational view of firm, we investigate how suppliers’ economies scale influence buyer's selection decision, illustrate is contingent upon economic, buyer, relationship characteristics. We test model with a large secondary dataset actual supplier from automotive industry show have strongly positive diminishing effect buying firm's decision....

This paper has been motivated by a fleet optimization problem faced one of the leading European cargo rail companies. The company operates more than 100,000 cars and annually invests significant sums money into new cars. Because price tag car is over 50,000 euros, planning such an important activity at company. In this paper, we develop solve analytical models for planning. We first describe rental process show how it can be modeled as queuing loss system. then profit function derive several...

Many companies have started segmenting customers to better match their products and services the needs of customers. We support this development by presenting a stochastic model rental system with two customer classes that was motivated operations one Europe's leading logistics companies. At company, can choose between premium classic service. Under service, provide advance demand information (ADI) reserving cars ahead time when they need them, receive service guarantee in return. do not...

In this article, we study the control of stochastic make‐to‐stock manufacturing lines in presence electricity costs. Electricity costs are difficult to manage because unit increase with total load, that is, amount needed by line at a certain point time. We demonstrate standard methods for controlling cannot be used and analytic results do not hold develop policy balances inventory holding backorder derive closed‐form expressions properties expected cost two workstations accuracy robustness...

Syngenta’s European seed business relies on supply chain to products various markets, which generated more than $1.2 billion in revenues 2013. The is, however, exposed a high level of uncertainty both the demand and sides. Determining optimal production volumes highly volatile environment year prior sales period is complex decision that can significantly affect company’s profitability through lost unsold supply. To better handle production-volume planning, Syngenta developed planning tool...

Sales and operations planning processes are used to align production quantities customer demand. Two key activities of these demand planning, which often assigned individuals in different departments. In “The Effect Social Preferences on Operations Planning,” Papier Thonemann analyze the role social preferences (altruism, inequality aversion, competitive pressure) monetary incentives motivating planners invest effort forecasting that benefits planners. Their results indicate can be...

Abstract This paper investigates a supply chain governed by flat penalty service‐level contract in which missing the target fill rate can lead to costly operational disruption. We focus on near‐miss bias: (1) preference for events, that is, risky production quantities reach but narrowly avoid disruption; and (2) riskier decision‐making due such preferences. propose reference‐dependent behavioral model explains bias. The findings of laboratory experiment show are evaluated based realized...

Problem definition: Online Food Delivery (OFD) platforms have witnessed rapid global expansion, partly driven by shifts in consumer behavior during the COVID-19 pandemic. These enable customers to order food conveniently from a diverse array of restaurants through their mobile phones. A core functionality these is algorithmic matching drivers orders, which focus our study as we aim optimize this driver-order process. Methodology/results: We formulate real-time algorithms that take into...

Every year, humanitarian organizations assign a sizable slice of their limited financial resources to procure, operate and maintain operational assets, without which service delivery would be impossible. In this paper, using vehicles as representative we identify policies for sizing allocating capacity minimize deprivation costs in development context. the first stage, develop stochastic dynamic programming model show that it is too complex solved medium- large-size problems. Then, an...

Motivated by the recent exits of automotive original equipment manufacturers (OEMs) from several different countries, we study a stochastic capacity allocation problem in which decisions key supplier impact market demand and exit risk OEM. In our setting, supplier’s influence OEM’s ability to serve its own customers. For example, when there is shortage component supply due under-allocation, affected OEM incurs lost sales, leading customers perceive service quality as poor. Such decline...

We study the problem of allocating supply under advance demand information (ADI). consider a company that must allocate limited inventory to different markets open sequentially. To reduce uncertainty, receives and updates forecasts about its each time it makes an allocation decision. value optimal use this information. Our research is motivated by agri-food manufacturer operates in several European countries. develop policy relaxed conditions efficient heuristic performs close general...

This paper investigates a supply chain governed by flat penalty service-level contract in which missing the target fill rate can lead to costly operational disruption. We focus on near-miss bias: (1) preference for events, i.e., risky production quantities that reach but narrowly avoid disruption, and (2) riskier decision-making due such preferences. propose reference-dependent behavioral model explains bias. The findings of laboratory experiment show are evaluated based realized profits...

Many companies have started segmenting customers to better match their products and services the needs of customers. We support this development by presenting a stochastic model rental system with two customer classes that was motivated operations one Europe’s leading logistics companies. At company, can choose between premium classic service. Under service, provide advance demand information (ADI) reserving cars ahead time when they need them, receive service guarantee in return. do not...