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Recently, business cases are observed more frequently where higher quality (also, higher-priced) products are sold earlier than its similar products. In the meantime, cooperating mechanism such as revenue-sharing contract is usually applied to facilitate retailers to buy more higher quality products by lowering selling price to the retailers to maximize overall supply chain profit. This study constructs an optimal model with the goal to maximize supply chain profit under product upward substitution and revenue sharing mechanisms to determine the optimal mix of ordering quantities of two products, compensating amount, and revenue sharing ratio. One real-life case are used to validate the models developed. The results show that compensating mechanism is able to motivate customers to accept the lower-quality product and to make retailers' profit higher. And, revenue sharing contract can push retailers to buy more high quality products to make the manufacturer's profit and supply chain profit higher.

In container shipping practices, containers owned by the shipping lines and leasing companies are generally regarded as homogeneous factor inputs and can substitute each other perfectly in providing the shipping service. Based on industry-wide data, this study surprisingly finds that the behavior of container selection for container shipping lines does not follow the pattern of perfect substitution, but rather the pattern of fixed proportions technology, through a constant elasticity of substitution production function. Combined with the observed relationship between the approximately constant leasing rates and the shrinking price premiums for leasing companies over the past two decades, the empirical results suggest that concerns with both the capital cost and strategic means may play key roles in determining the mix of owned and leased containers for the shipping lines. Several strategic concerns including the long-term leasing contract, supplier diversity program, and option contract are discussed and suggested as approaches that can be applied by the shipping lines to arrange their leasing policies with lessors and to moderate the competition of these two parties in expanding their container fleets. These approaches not only can reduce the costs and the associated risks for the shipping lines, but can also alleviate the situation of over-supplied containers in the global container shipping industry.

This research presents a solution process for Periodic Arc Routing Problem with Refill Points (PARPRP). The Periodic Arc Routing Problem is a natural extension of Arc Routing Problem (ARP) and is classified as an NP-hard problem. The street tree watering problem is used as the case study. The study tackles the ARP requiring a specified time horizon to fulfill it. A refill point in the problem is a node in the graph at which the vehicle capacity can be recovered as long as the vehicle makes a stop on it. The strategy of solving the problem is first to transform the problem into a Vehicle Routing Problem. Secondly, an Ant Colony Optimization algorithm is developed to solve the PARPRP because of its remarkable capability in the establishment of network routes. A local search method is incorporated to reach the local minimum for further improvement. Two sets of benchmarks are used to verify the solving process and the computational results are provided. The outputs indicate that proposed methods can yield pro...