scholarly journals A Joint Optimization Model considering the Product User's Risk Preference for Supply System Disruption

2021 ◽  
Vol 2021 ◽  
pp. 1-18
Author(s):  
Yang Song ◽  
Yan-Qiu Liu ◽  
Qi Sun ◽  
Ming-Fei Chen ◽  
Hai-Tao Xu
Keyword(s):  
Decision Making ◽  
Operating Cost ◽  
Risk Preference ◽  
Economic Benefits ◽  
Cost Utility ◽  
Compromise Solution ◽  
Joint System ◽  
Supply Disruption ◽  
Location Routing ◽  
Disruption Risk

Logistics distribution is the terminal link that connects the manufacturer and product user and determines the efficiency of the manufacturer’s service. Therefore, the disruption risk of the joint system is an essential factor affecting the product user experience. In this paper, while considering the product user’s supply disruption risk preference (PUSDRP), a biobjective integer nonlinear programming (INLP) model with subjective cost-utility is proposed to solve the manufacturer’s combined location routing inventory problem (CLRIP). According to the user’s time satisfaction requirement, a routing change selection framework (RCSF) is designed based on the bounded rational behavior of the user. Additionally, the Lagrange Relaxation and Modified Genetic Algorithm (LR-MGA) is proposed. The LR method relaxes the model, and the MGA finds a compromise solution. The experimental results show that the biobjective cost-utility model proposed in this paper is effective and efficient. The RCSF based on user behavior is superior to the traditional expected utility theory model. The compromise solution provides a better solution for the manufacturer order allocation delivery combinatorial optimization problem. The compromise solution not only reduces the manufacturer’s total operating cost but also improves the user's subjective utility. To improve the stability of cooperation between manufacturers and users, the behavior decision-making method urges manufacturers to consider product users’ supply disruption risk preferences (PUSDRPs) in attempting to optimize economic benefits for the long term. This paper uses behavior decision-making methods to expand the ideas of the CLRIP joint system.

Study of highway asphalt pavement recycling maintenance scheme decision system and decision method

2021 ◽  
pp. 1-10
Author(s):  
Hongjun Jing ◽  
Ping Yao ◽  
Lichen Song ◽  
Jiahao Zhang ◽  
Yanlong Zhao ◽  
...  
Keyword(s):  
Decision Making ◽  
Evaluation System ◽  
Evaluation Method ◽  
Comprehensive Evaluation ◽  
Asphalt Pavement ◽  
Economic Benefits ◽  
Highway Maintenance ◽  
Decision System ◽  
Recovery Index ◽  
Pavement Recycling

With modern economic and social development, the technical and economic requirements of highway maintenance and construction projects have become increasingly complicated. Meticulous and in-depth investigation and demonstration guided by scientific theories and methods are of considerable importance to highway maintenance scheme decision. As basis for the selection of highway asphalt pavement recycling maintenance scheme, the factors influencing the decision are analytically demonstrated and an evaluation system is proposed, including three major decision indexes: applicability of recycling mode, recycled pavement quality recovery index, and economic benefit. According to the principles of data statistics and analysis, this study proposes a calculation method for the recycled pavement quality recovery index, analyzes the economic benefits of decision schemes using economic models such as recycling ratio and cost, and puts forward an optimal evaluation method of engineering cost and its fuzzy score intervals. Index weights are calculated through the analytic hierarchy process, and the comprehensive decision evaluation system and comprehensive evaluation method are established. Subsequently, the decision-making method is analyzed on the basis of the decision system by combining the related data. Results show maximum weight of the pavement quality recovery index and minor differences among four recycling schemes in the quality recovery index and applicability. The decision-making results are simplified with clear hierarchical feature because of the fuzzy score intervals of each index. Findings can provide a reference for the asphalt pavement recycling scheme decision.

scholarly journals Economic valuation and mapping of Ecosystem Services in the context of protected area management (Natural Park of Serra de São Mamede, Portugal)

One Ecosystem ◽  
2018 ◽  
Vol 3 ◽  
Author(s):  
Cristina Marta-Pedroso ◽  
Lia Laporta ◽  
Ivo Gama ◽  
Tiago Domingos
Keyword(s):  
Decision Making ◽  
Ecosystem Services ◽  
Protected Areas ◽  
Crop Production ◽  
Economic Value ◽  
Market Price ◽  
Economic Benefits ◽  
Data Availability ◽  
Primary Data ◽  
Natural Park

Demonstrating economic benefits generated by protected areas is often pointed out as pivotal for supporting decision-making. We argue in this paper that the concept of ecosystem services (ES), defined as the benefits humans derive from ecosystems, provides a consistent framework to approach this issue as it links ecosystem functioning and benefits, including benefits with economic value. This study aimed at providing evidence on how to bring the economic value of protected areas to the decision-making process and contributing to extend current EU Member States' experience in mapping and assessing the economic value of ES in the context of the EU Biodiversity Strategy to 2020 (Action 5). In doing so, we used the Natural Park of Serra de S. Mamede (PNSSM), located in the Alentejo NUTS II region, as a case study. We followed a three-step approach to pursue our goals, entailing stakeholders' engagement for selecting relevant ES (through a participatory workshop), biophysical mapping of ES flows (based on a multi-tiered approach depending on data availability) and spatial economic estimation of such flows (using value transfer, willingness-to-pay and market price methods). Our results indicate that the ES with highest economic value are not always the ones with higher perceived value by stakeholders. For most ES, the economic value increased with increasing protection level within the park, except for the crop production service. Although no formal uncertainty or sensitivity analysis has been performed, the following range is based on a critical assessment of non-primary data used. We estimated the aggregate annual value of PNSSM to be 11 to 33M€/year (representing 0.1 to 0.3% of the regional NUTSII Alentejo Gross Domestic Product). Our findings reinforce the need to adopt mixes of monetary and non-monetary valuation processes and not to rely just on one approach or measure of value while bringing ES into protected areas management.

scholarly journals Cost-Effectiveness Analysis of a Large-Scale Crèche Intervention to Prevent Child Drowning in Rural Bangladesh

2021 ◽  
Author(s):  
Y. Natalia Alfonso ◽  
Adnan A Hyder ◽  
Olakunle Alonge ◽  
Shumona Sharmin Salam ◽  
Kamran Baset ◽  
...  
Keyword(s):  
Cost Effectiveness ◽  
Societal Perspective ◽  
Large Scale ◽  
Operating Cost ◽  
Cost Effective ◽  
Economic Benefits ◽  
Program Cost ◽  
Rural Bangladesh ◽  
Life Years ◽  
The Cost

Abstract Drowning is the leading cause of death among children 12-59 months old in rural Bangladesh. This study evaluated the cost-effectiveness of a large-scale crèche intervention in preventing child drowning. Estimates of the effectiveness of the crèches was based on prior studies and the program cost was assessed using monthly program expenditures captured prospectively throughout the study period from two different implementing agencies. The study evaluated the cost-effectiveness from both a program and societal perspective. Results showed that from the program perspective the annual operating cost of a crèche was $416.35 (95%C.I.: $222 to $576), the annual cost per child was $16 (95%C.I.: $9 to $22) and the incremental-cost-effectiveness ratio (ICER) per life saved with the crèches was $17,803 (95%C.I.: $9,051 to $27,625). From the societal perspective (including parents time valued) the ICER per life saved was -$176,62 (95%C.I.: -$347,091 to -$67,684)—meaning crèches generated net economic benefits per child enrolled. Based on the ICER per disability-adjusted-life years averted from the societal perspective (excluding parents time), $2,020, the crèche intervention was cost-effective even when the societal economic benefits were ignored. Based on the evidence, the creche intervention has great potential for reducing child drowning at a cost that is reasonable.

scholarly journals Induced Traffic and its Treatment in the Evaluation of Motorway Projects

2012 ◽  
Vol 22 (6) ◽  
pp. 459-465
Author(s):  
Ljubiša Kuzović ◽  
Dražen Topolnik ◽  
Draženko Glavić
Keyword(s):  
Indirect Effects ◽  
Relevant Literature ◽  
Operating Cost ◽  
Feasibility Studies ◽  
Economic Benefits ◽  
Economic Aspects ◽  
Economic Surplus ◽  
Highway Projects ◽  
Time Savings ◽  
Coefficient Of Elasticity

The purpose of this paper is to define factors that influence the emergence of induced i.e. generated traffic for experts involved in highway feasibility studies. An explanation of the practical methods for forecasting generated traffic is done by reviewing international experiences in the relevant literature. Also, the idea underlying this paper is to explain the different treatments of generated traffic in evaluating highway projects with no tolls, which is based on socio-economic aspects versus the evaluation of highway projects with tolls, which is based on financial aspects. Finally, we propose that since it is hard to measure the economic benefits from indirect effects (in the evaluation of socio-economic aspects) the evaluators could determine the economic benefits of the generated traffic using the same procedure as for normal traffic. KEYWORDS: induced traffic (generated traffic), normal traffic, coefficient of elasticity, time savings, vehicle operating cost (VOC) savings, the economic surplus

An Expert System Based on a Hybrid Multi-Criteria Decision Making Method for Selection of Non-Conventional Machining Processes

2015 ◽  
Vol 735 ◽  
pp. 41-49 ◽  
Author(s):  
Arash Azaryoon ◽  
Musa Hamidon ◽  
Ashraf Radwan
Keyword(s):  
Decision Making ◽  
Analytic Network Process ◽  
Reference Points ◽  
Multi Criteria Decision Making ◽  
Compromise Solution ◽  
Machining Processes ◽  
Workpiece Material ◽  
Topsis Technique ◽  
Conventional Machining ◽  
Selection Of

In this study, a knowledge-based system has been developed for selection of non-conventional machining processes using a hybrid multi-criteria decision making Method. This approach is a combination ofDEMATEL(Decision Making Trial and Evaluation Laboratory),ANP(Analytic Network Process) andVIKOR(VlseKriterijumska Optimizacija I Kompromisno Resenje, in Serbian, meaning Multi-criteria Optimization and Compromise Solution) methods which evaluates different types of quantitative and qualitative measures of performance and economic factors, and ultimately provides a set of capable processes in order of priority. Twelve machining processes, eight group of workpiece material and eighteen shape features have been investigated in this study. What separates this approach from others is that, this hybrid method considers the influence of factors in the network relation map as well as their relative importance. Moreover, unlike other popular ranking methods such as TOPSIS (Technique for Order Preference by Similarity to the Ideal Solution), it is not just based on two reference points, namely ideal and inferior points; instead, it proposes a compromise solution and not just a single ranking score. Observations have shown that the developed system works satisfactorily, yields acceptable results and makes accurate decisions as well. It also provides a comparative study among the alternative processes by utilizing graphical features for better analysis and judgment of acceptable alternatives.

scholarly journals Managing Procurement for a Firm with Two Ordering Opportunities under Supply Disruption Risk

2018 ◽  
Vol 10 (9) ◽  
pp. 3293 ◽  
Author(s):  
Kelei Xue ◽  
Ya Xu ◽  
Lipan Feng
Keyword(s):  
Stackelberg Game ◽  
Option Price ◽  
Mean Value ◽  
Market Demand ◽  
Supply Disruption ◽  
Exercise Price ◽  
Procurement Price ◽  
Disruption Risk ◽  
Demand Variability ◽  
Procurement Strategies

Supply disruption is a common phenomenon in industry, which brings destructive effects to downstream firms and damages the sustainability of the supply chain. To mitigate the supply disruption risk, the authors investigate two types of procurement strategies for a firm with two ordering opportunities. Through establishing Stackelberg game models, the authors drive the supplier’s optimal production, and the firm’s optimal procurement and replenishment strategies under the option purchase (OP) strategy and the procurement commitment (PC) strategy, respectively. The findings show that, under both types of strategies, the firm’s procurement follows a “threshold” principle. Moreover, the firm’s procurement quantity can be represented by two newsvendor solutions. A lower option price or option exercise price benefits the firm, while it damages the supplier. The supplier benefits from a higher mean value (MV) of emergency procurement price and the firm benefits from a lower market demand variability. Counter-intuitively, a lower MV of the emergency procurement price is not always beneficial to the firm. A higher market demand variability could be beneficial to the supplier under the PC strategy. The firm should first choose the PC strategy and then change to the OP strategy as the disruption risk increases.

Sign in / Sign up

Export Citation Format

Share Document