Authors:Congjun Rao, Yong Zhao, Junjun Zheng, Mark Goh, Cheng Wang Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. Multiple equilibria (equilibrium excursion) affects the auction proceeds, and is bad for estimating auction efficiency. This paper examines the relationship between bidding behavior and equilibrium excursion. We analyze a uniform price auction mechanism based on a rationing strategy and common value information. In this uniform price auction mechanism, bidders (strategic and non-strategic) participate in an auction simultaneously, and the auctioneer rations the strategic bidders after observing their bids. The conclusions drawn suggest that a rationing strategy can effectively limit the strategic bidders from manipulating the auction, and the Nash equilibrium may not be unique (i.e., there exists an equilibrium excursion). As the number of bidders increases, or when the quantity that can be allocated to the non-strategic bidders is unconstrained, there exists asymptotically a unique equilibrium price which is the highest price the auctioneer could obtain. Based on these conclusions, we provide some strategies and suggestions on how to induce the equilibrium excursion state to a desired unique equilibrium state. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-11-24T03:18:20Z DOI: 10.1142/S0217595917500282

Authors:Weiwei Zhang, Zhongfei Li, Ke Fu, Fan Wang Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. This paper studies the stochastic differential Stackelberg game in a continuous-time newsvendor problem with a return policy, in which one supplier sells products to one retailer and the two parties make the decisions sequentially to maximize their own expected profits. When the demand process is a general jump-diffusion process, we provide a general formula for the equilibrium if it exists. When the demand rate is an Ornstein–Uhlenbeck (O–U) process, we prove the existence and uniqueness of the equilibrium and find an explicit expression for the equilibrium. Computational results show that the return policy has significant impact on the Stackelberg equilibrium. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-11-24T03:18:20Z DOI: 10.1142/S0217595917500312

Authors:Naoto Katayama Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. Multicommodity network problems appear in numerous applications, such as telecommunications, logistics, transportation, distribution and production planning networks. The piecewise linear multicommodity network flow problem is a multicommodity network flow problem with piecewise linear costs corresponding to multiple resources, such as communication lines, vehicles and production lines. In the present paper, for the piecewise linear multicommodity network continuous flow problem, we present a path-based formulation and an arc-based formulation, and develop a combined matheuristic approach, which combines capacity scaling, a column and row generation technique, restricted branch-and-bound and a local branch method. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-11-24T03:18:20Z DOI: 10.1142/S0217595917500336

Authors:Weihua Liu, Donglei Zhu, Yijia Wang Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. This paper discusses the applicable conditions of two capacity procurement sub-strategies with two ordering opportunities, namely, sub-strategy I in which only increasing purchase quantity is allowed during the second ordering opportunity, and sub-strategy II in which either increasing or reducing order quantities is possible when the second order is placed. Our research is in the context of a logistics service supply chain (LSSC) consisted of a logistics service integrator (LSI) and a functional logistics service provider (FLSP). LSI purchases first a service capacity from FLSP long before demand is realized and then adjusts this ordering quantity based on demand updating. We developed the profit models for LSI and FLSP which also include the constraints of rational expectations. Based on the assumption of Bayesian updating, this paper investigates the conditions for sub-strategy II outperforming sub-strategy I. The main results are verified through numerical analysis. Counter-intuitively, sub-strategy II is not necessarily always better than sub-strategy I. When using sub-strategy II, LSI needs to purchase more service the first time of placing orders, but the expected profits increase for both LSI and FLSP only with certain conditions, which have been derived as propositions in this paper. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-11-24T03:18:19Z DOI: 10.1142/S0217595917500294

Authors:J. Vakili Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. In data envelopment analysis (DEA), calculating the distances of decision making units (DMUs) from the weak efficient boundary of a production possibility set (PPS) is a very important subject which has attracted increasing interest of researchers in recent years. The distances of DMUs to the weak efficient boundary of the PPS can be used to evaluate the performance of DMUs, obtain the closest efficient patterns and also assess the sensitivity and stability of efficiency classifications in DEA. The present study proposes some new models which compute the distances of DMUs from the weak efficient boundary of a PPS for both convex and nonconvex PPSs using Hölder norms. In fact, the presented models assist a DMU to improve its performance by an appropriate movement towards the weak efficient boundary. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-11-24T03:18:19Z DOI: 10.1142/S021759591750035X

Authors:Zhongming Wu, Min Li, David Z. W. Wang, Deren Han Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. In this paper, we propose a symmetric alternating method of multipliers for minimizing the sum of two nonconvex functions with linear constraints, which contains the classic alternating direction method of multipliers in the algorithm framework. Based on the powerful Kurdyka–Łojasiewicz property, and under some assumptions about the penalty parameter and objective function, we prove that each bounded sequence generated by the proposed method globally converges to a critical point of the augmented Lagrangian function associated with the given problem. Moreover, we report some preliminary numerical results on solving [math] regularized sparsity optimization and nonconvex feasibility problems to indicate the feasibility and effectiveness of the proposed method. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-11-24T03:18:18Z DOI: 10.1142/S0217595917500300

Authors:Robert Cuckler, Kuo-Hao Chang, Liam Y. Hsieh Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. We model and apply a stochastic-simulation-based methodology to optimize the machine allocation of a flexible flow shop (FFS) dedicated to integrated circuit (IC) packaging. This contrasts with most previous research on non-deterministic FFS problems wherein stochastic simulation is mostly used to estimate throughput, cycle time, delay cost, or some other measure(s) in order to compare the performances of already-existing heuristic-based algorithms. The methodology applied in this research, called progressive simulation metamodeling for IC Packaging (IC-PSO), while rooted in the traditional metamodeling technique known as Response Surface Methodology (RSM), contrasts with RSM in that it is equipped with well-designed mechanisms to ensure an ever-increasing solution quality in an attempt to achieve the desirable optimality. The computational efficiency that IC-PSO affords IC packaging companies is demonstrated via a numerical study. Meanwhile, an empirical study based on real data was conducted to validate the viability of the proposed methodology in real settings. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-11-24T03:18:18Z DOI: 10.1142/S0217595917500348

Authors:Wade D. Cook, Chuanyin Guo, Wanghong Li, Zhepeng Li, Liang Liang, Joe Zhu Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. An important area of research involving the benchmarking methodology data envelopment analysis (DEA), concerns the modeling of multistage situations. In the usual multistage settings, it is generally assumed that all decision-making units (DMUs) have the same number and configuration of stages. However, in many real-world examples, this assumption does not hold. Consider, for example, a supply chain setting where for some DMUs, products are shipped directly from a supplier to a retailer (single-stage), while for other DMUs, products can be transshipped through distribution centers (two or more stages). In the current paper, we investigate an efficiency measurement situation where the DMUs exhibit a mix of single and two-stage setups. The particular case examined involves a set of high technology firms that can be thought of as falling into two groups; those firms where the output of interest is the annual revenue generated, and those that not only generate revenue, but as well invest a portion of that revenue in R&D. Firms in the first group can be viewed as being single-stage DMUs while those in the other group are of the two-stage type. The modeling complication here is that the set of DMUs do not explicitly form a homogeneous set of units. We develop a DEA-style model aimed at measuring efficiency in the presence of such nonhomogeneous two-group structures. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-11-24T03:18:17Z DOI: 10.1142/S0217595917500324

Authors:Lotfi Tadj Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. This paper contributes to the literature of single server queueing models with a vacationing server. We have incorporated many features for a better control over the system. The server implements the N-policy, takes both single and multiple vacations, and is subject to breakdowns. The embedded Markov chain technique is used to obtain the pgf of the system size at a service completion epoch in the steady-state. The semi-regenerative technique is used to obtain the pgf of the system size at an arbitrary instant of time in the steady-state. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-11-24T03:18:17Z DOI: 10.1142/S0217595917500361

Authors:Yu Zhao, Xi Zhang, Zhongshun Shi, Lei He Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. Grain price forecasting is significant for all market participants in managing risks and planning operations. However, precise forecasting of price series is difficult because of the inherent stochastic behavior of grain price. In this paper, a novel hybrid stochastic method for grain price forecasting is introduced. The proposed method combines decomposed stochastic time series processes with artificial neural networks. The initial parameters of the hybrid stochastic model are optimized by a random search using a genetic algorithm. The proposed method is finally validated in China’s national grain market and compared with several recent price forecasting models. Results indicate that the proposed hybrid stochastic method provides a satisfactory forecasting performance in grain price series. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-09-19T06:39:27Z DOI: 10.1142/S0217595917500208

Authors:Soheila Seyedboveir, Sohrab Kordrostami, Behrouz Daneshian, Alireza Amirteimoori Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. The “Dynamic-network” version of cost efficiency measurement in Data Envelopment Analysis (DEA) is proposed in this paper. The classical DEA models ignore operations of individual processes within a system; moreover, they compute efficiency at the same time. Therefore, we suggest a relational model to estimate cost efficiency in static network structures. Also, we incorporate the dynamic effect in network structures. The proposed models here evaluate the overall efficiency over the whole periods and indicate it as a weighted average of period efficiencies. The main advantage revealed in this study is recognition of: which divisions at what periods caused the inefficiency of the system, the internal activities of the system over time, considered; moreover, the results obtained here is applicable in, improving the performance of the system. A case study of Iranian banking industry is used to show the applicability of the approach. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-09-15T05:57:20Z DOI: 10.1142/S0217595917500233

Authors:Jun Tong, Jian-Qiang Hu, Jiaqiao Hu Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. We propose an efficient algorithm for computing the equilibrium of a capital asset pricing model with heterogeneous investors and short-sale constraints. We show that the equilibrium prices of the risky assets in the model are proportional to the Lagrangian multipliers of an equivalent dual formulation of the problem. Based on this observation, we derive sufficient conditions to guarantee the existence and uniqueness of equilibrium and prove the convergence of the algorithm. Numerical examples are also provided to illustrate the algorithm. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-09-15T05:57:19Z DOI: 10.1142/S0217595917500257

Authors:Yuxiang Yang, Zuqing Huang, Qiang Patrick Qiang, Gengui Zhou Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. A firm sets up his facilities including manufacturing/remanufacturing plants and distribution/collection centers, incorporating an existing closed-loop supply chain (CLSC) network. The entering firm has to compete with the existing firms in the existing network. The entering firm behaves as the leader of a Stackelberg game while the existing firms in the existing network are followers. We assume that the entering firm can anticipate the existing firms’ reaction to his potential location decision before choosing his optimal policy. We use a CLSC network equilibrium model in which the decision makers are faced with multiple objectives to capture the existing firms’ reaction. A mathematical programming model with equilibrium constraints is developed for this competitive CLSC network design problem by taking into account the market competition existing in the decentralized CLSC network. A solution method is developed by integrating Genetic algorithm with an inexact logarithmic-quadratic proximal augmented Lagrangian method. Finally, numerical examples and the related results are studied for illustration purpose. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-09-15T05:57:19Z DOI: 10.1142/S0217595917500269

Authors:Lingfa Lu, Liqi Zhang Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. In this paper, we consider the online single machine scheduling problem to minimize the maximum starting time of the jobs. For the non-preemptive model, we show that there is no determined or randomized online algorithm with a bounded competitive ratio. For the preemption-resume model, we show that the well-known SRPT rule yields an optimal schedule. For the preemption-restart model, we show that any determined online algorithm has a competitive ratio of at least [math] and present an online algorithm with the best-possible competitive ratio of [math]. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-09-05T01:25:57Z DOI: 10.1142/S0217595917500221

Authors:Qiulan Zhao, Jinjiang Yuan Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. We introduce and study the rescheduling on a single machine to minimize the maximum lateness under the sequence disruptions of original jobs. In the problem, each original job [math] has a constraint disruption on its sequence respect to an original optimal schedule [math], i.e., [math]. That is, if [math] is the [math]th job in [math], then it is required that the position index [math] of [math] in a schedule for all jobs satisfies [math]. By introducing the positive sequence disruption [math] and the negative sequence disruption [math], three problems are considered in this paper: problem (P1) is [math], problem (P2) is [math], and problem (P3) is [math]. We show that the three problems are equivalent and can be solved in [math] time. Then we study an extension of problem (P2): [math]. We show that the extended problem can be solved in [math] time. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-09-05T01:25:57Z DOI: 10.1142/S0217595917500245

Authors:Qing Wang, Zhaojun Liu, Yang Zhang Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. In the traditional DEA model, each DMU maximizes its efficiency with the most favorable weights. This leads to flexibility and unreality of input and output weights. Subsequently, it is unfair to compare and rank the efficiencies of different DMUs obtained on the basis of these weights. In this paper, we propose a novel approach to determine a common set of weights with more consensus to evaluate and rank the performance of all DMUs by weighting the rescaled weights based on the degree of consensus, where the weights obtained from DEA are rescaled for comparison among DMUs. Moreover, to overcome the non-uniqueness of the weights, a novel secondary goal is developed based on the agreement between self-evaluation and peer-evaluation. In addition, the restriction of weights is taken into account to avoid trivial weights. Finally, an example of 14 international passenger airlines is used to illustrate the performance and credibility of our proposed method. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-09-05T01:25:57Z DOI: 10.1142/S0217595917500270

Authors:Andrea Raiconi, Julia Pahl, Monica Gentili, Stefan Voß, Raffaele Cerulli Abstract: Asia-Pacific Journal of Operational Research, Ahead of Print. In this work, we face a variant of the capacitated lot sizing problem. This is a classical problem addressing the issue of aggregating lot sizes for a finite number of discrete periodic demands that need to be satisfied, thus setting up production resources and eventually creating inventories, while minimizing the overall cost. In the proposed variant we take into account lifetime constraints, which model products with maximum fixed shelflives due to several possible reasons, including regulations or technical obsolescence. We propose four formulations, derived from the literature on the classical version of the problem and adapted to the proposed variant. An extensive experimental phase on two datasets from the literature is used to test and compare the performance of the proposed formulations. Citation: Asia-Pacific Journal of Operational Research PubDate: 2017-06-29T04:28:23Z DOI: 10.1142/S0217595917500191