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Creating and maintaining an efficient distribution network is essential for companies in the modern pharmaceutical industry. Medicine delivery usually takes place via depots and/or satellites, and the proposed model for assessing the issue determines the facility and routing decisions simultaneously. We develop a technique that iterates between an upper bound and a lower bound, based on a blended Lagrangian relaxation branch-and-cut approach where we exploit separability and linearity. We conducted computational experiments on real-life instances from the Dutch pharmaceutical industry distribution network. We show that the solution method can provide solutions for real-life cases within reasonable time windows. [ABSTRACT FROM AUTHOR]

Abstract: In this paper, we develop a general analytical method to compute clustering coefficients of growing networks. This method can be applied to any network as long as we can construct and solve the dynamic equation for the degree of any node. We also verify the accuracy of the method through simulation. [Copyright &y& Elsevier]

• We develop models that suggest LNG infrastructure plans for refueling stations. • We consider pipeline-to-ship and truck-to-ship bunkering. • We develop an effective primal heuristic, based on Lagrangian relaxation. • We perform a case study for the West-European river network. Growing awareness of the environment and new regulations of the International Maritime Organization and the European Union are forcing ship-owners to reduce pollution. The use of liquefied natural gas (LNG) is one of the most promising options for achieving a reduction in pollution for inland shipping and short sea shipping. However, the infrastructure to facilitate the broad use of LNG is yet to be developed. We advance and analyze models that suggest LNG infrastructure development plans for refueling stations that support pipeline-to-ship and truck-to-ship bunkering, specifying locations, types, and capacities, and that take into account the characteristics of LNG, such as boil-off during storage and loading. We develop an effective primal heuristic, based on Lagrangian relaxation, for the solution of the models. We validate our approach by performing a computational study for the waterway network in the Arnhem-Nijmegen region in the West-European river network, including, among others, multi-year scenarios in which capacity expansion and reduction are possible. [ABSTRACT FROM AUTHOR]

• The joint optimization of pricing and ordering decisions is studied in different scenarios. • The effects of reference dependence and loss aversion vary in different scenarios. • Reference dependence has a greater effect than loss aversion. • Stochastic reference point has a lower price and a higher inventory level. This study examines the joint optimization of pricing and ordering decisions for a loss-averse newsvendor with reference dependence. We explore the effects of reference dependence and loss aversion from various aspects. We find that demand type, reference point type and cost setting heavily affect the optimal decisions. For multiplicative demand, reference dependence leads to ordering less. Whether to further raise the price depends on the cost setting. For additive demand, selling fewer (cheaper) is the best in the fixed-amount (fixed-ratio) cost setting. Compared with a deterministic reference point, stochastic reference point has a lower price and a higher inventory level. [ABSTRACT FROM AUTHOR]

With the rapid development of global economic integration, the size of gray markets continues to expand. The purpose of this paper is to analyse the impact of different structures of gray markets on supply chain decisions and profits. Using game theory, we comprehensively analyze pricing and quantity decisions under monopoly parallel importation (either third-party parallel importation or retailer parallel importation), and duopoly parallel importation, including three different structures in which the retailer and the third-party parallel importation coexist in gray markets with different power structures. We obtain equilibrium results for each structure, compare the optimal strategies of these structures, and develop valuable insights. [ABSTRACT FROM AUTHOR]

Highlights • Develop a game-theoretical model that captures both brand and channel strategies. • Consider value differential between different products and between different channels. • Store brand introduction and online direct channel introduction are interacted. • A prisoner's dilemma can arise when introducing store brand and online direct channel. Abstract This paper investigates the strategic interplay between a national brand manufacturer and a retailer in introducing an online direct channel and a store brand by constructing a game-theoretic model that incorporates the firms' channel and brand strategies. We show that at equilibrium, the store brand is introduced but the online direct channel may or may not be introduced. Interestingly, the firms may be trapped in a prisoner's dilemma when they choose to introduce the online direct channel and store brand. The online direct channel may be introduced if the store brand has been introduced; otherwise it may not be introduced. [ABSTRACT FROM AUTHOR]

We study the practical setting in which regular- and reserve-crew schedules are dynamically maintained up to the day of executing the schedule. At each day preceding the execution of the schedule, disruptions occur due to sudden unavailability of personnel, making the planned regular and reserve-crew schedules infeasible for its execution day. This paper studies the fundamental question how to repair the schedules' infeasibility in the days preceding the execution, taking into account labor regulations. We propose a robust repair strategy that maintains flexibility in order to cope with additional future disruptions. The flexibility in reserve-crew usage is explicitly considered through evaluating the expected shortfall of the reserve-crew schedule based on a Markov chain formulation. The core of our approach relies on iteratively solving a set-covering formulation, which we call the Robust Crew Recovery Problem, which encapsulates this flexibility notion for reserve crew usage. A tailored branch-and-price algorithm is developed for solving the Robust Crew Recovery Problem to optimality. The corresponding pricing problem is efficiently solved by a newly developed pulse algorithm. Based on actual data from a medium-sized hub-and-spoke airline, we show that embracing our approach leads to fewer flight cancellations and fewer last-minute alterations, compared to repairing disrupted schedules without considering our robust measure. • We study how to repair infeasible airline schedules due to disruptions. • We consider a robust measure for reserve-crew scheduling. • We design a branch-and-price method to solve the reserve-crew scheduling problem. • We present results using actual data of an airline company. • Our method reduces flight cancellations and last-minute alterations. [ABSTRACT FROM AUTHOR]

Online retail pharmacies usually price their products differently from traditional drugstores. Based on real-time consumer behaviors, this paper proposes a dynamic bundle pricing strategy to maximize the pharmacy's profit. Given free shipping thresholds and consumer budgets, we propose a mixed-integer nonlinear programming model and a heuristic to sequentially price customized bundles. We further conduct a numerical study using the data from a leading e-pharmacy in China. Our computational results indicate that the proposed model not only improves the e-pharmacy's profit by attracting more customers but noticeably contributes to consumer surplus. Through sensitivity analysis, our model is proved to be robust under various scenarios. • We study a dynamic bundle pricing strategy to maximize the e-pharmacy's profit. • We develop a mathematical model and a heuristic to price customized bundles. • We conduct a numerical study using the data from a leading e-pharmacy in China. • Our model improves the e-pharmacy's profit and increases consumer surplus. [ABSTRACT FROM AUTHOR]

For retailers, carrying inventories may force suppliers to lower wholesale prices in their future transactions. Previous literature on strategic inventories has assumed that the unit production cost of the supplier is negligible. In practice, the production cost is the supplier's private information. In this research, we study the impact of supplier's cost misreporting behavior on supply chain decisions in a two-period strategic inventory basic model consisting of a retailer and a supplier. We find that the retailer's retention of strategic inventories can incentivize the supplier to misreport costs. As the retailer carries inventories, the supplier can misreport a higher cost, thus increasing the wholesale price and supplier's profit margins. Moreover, we find that misreporting behavior hurts the retailer and exacerbates the double marginalization effect, leading to inefficiency in the supply chain. The supplier's profit is further improved when the supplier can misreport the different costs in each period. When we consider competition from downstream retailers, only if both two retailers do not hold strategic inventories, can they prevent the supplier from misreporting. The retailer's detection measures are needed to ensure the coordination role of strategic inventory. • We study the impact of cost misreporting on strategic inventories and the supply chain. • We characterize conditions for inventory to play a strategic role in supplier and retailer transactions. • We find wholesale prices, retailer prices increase because of supplier's cost misreporting. • We highlight implications for supply chain management due to the ignorance of cost misreporting. [ABSTRACT FROM AUTHOR]