This page has only limited features, please log in for full access.

Dr. Guowei Hua
School of Economics and Management, Beijing Jiaotong University, Shangyuancun 3, Beijing 100044, China

Basic Info

Basic Info is private.

Research Keywords & Expertise

0 Inventory Management
0 Sustainability
0 facility location
0 Operations and supply chain management
0 Dual supply chain

Fingerprints

facility location

Honors and Awards

The user has no records in this section


Career Timeline

The user has no records in this section.


Short Biography

The user biography is not available.
Following
Followers
Co Authors
The list of users this user is following is empty.
Following: 0 users

Feed

Journal article
Published: 06 July 2021 in Computers & Operations Research
Reads 0
Downloads 0

Putting the parts-to-picker idea into practice, the robotic mobile fulfillment system (RMFS) deploys robots to bring racks to stationary pickers so that the pickers focus only on order picking and the racks can be concurrently moved. An order sequencing and rack scheduling policy determines the processing sequence of given orders, as well as the allocation and arriving sequence of the racks. While order sequencing has been studied in the literature, there is little work on rack scheduling, which also affects the picking efficiency. We formulate a mixed-integer linear programming model and propose a two-stage solution procedure to address the problem of joint optimization of order sequencing and rack scheduling in the RMFS. Our numerical studies show that jointly optimizing order sequencing and rack scheduling reduces the robotic tasks by up to 59.8%, 50.8%, 32.0% compared with benchmark solutions, rack scheduling only, and order sequencing only, respectively. Our findings provide managerial insights that expanding the workbench capacity and storage density enhances processing performance.

ACS Style

Xiying Yang; Guowei Hua; Linyuan Hu; T.C.E. Cheng; Anqiang Huang. Joint optimization of order sequencing and rack scheduling in the robotic mobile fulfilment system. Computers & Operations Research 2021, 135, 105467 .

AMA Style

Xiying Yang, Guowei Hua, Linyuan Hu, T.C.E. Cheng, Anqiang Huang. Joint optimization of order sequencing and rack scheduling in the robotic mobile fulfilment system. Computers & Operations Research. 2021; 135 ():105467.

Chicago/Turabian Style

Xiying Yang; Guowei Hua; Linyuan Hu; T.C.E. Cheng; Anqiang Huang. 2021. "Joint optimization of order sequencing and rack scheduling in the robotic mobile fulfilment system." Computers & Operations Research 135, no. : 105467.

Journal article
Published: 18 June 2021 in European Journal of Operational Research
Reads 0
Downloads 0

Killing tens of thousand of people and bringing tremendous loss, epidemics have been one of the most huge and urgent threats for all human kind. Given the abruptness of epidemic outbreaks, quick access to sufficient medical supplies is essential. Most existing research focuses on reserving physical stocks only, while some authors also consider reserving production capacity. This study is the first to consider capital reserves besides physical stocks, a practice that is for instance used in China. We characterize in closed form and graphically under what conditions a certain reserve policy (no reserves, safety stock only, capital reserve only, mixed reserves) is optimal. A key insight is that increased demand uncertainty sometimes leads to lower safety stock levels, although the combined reserves do increase. In such situations, to limit the risk of obsolescence, it is optimal to rely less on safety stocks and more on capital reserves.

ACS Style

Weijian Zhang; Xianliang Shi; Anqiang Huang; Guowei Hua; Ruud H. Teunter. Optimal Stock and Capital Reserve Policies for Emergency Medical Supplies against Epidemic Outbreaks. European Journal of Operational Research 2021, 1 .

AMA Style

Weijian Zhang, Xianliang Shi, Anqiang Huang, Guowei Hua, Ruud H. Teunter. Optimal Stock and Capital Reserve Policies for Emergency Medical Supplies against Epidemic Outbreaks. European Journal of Operational Research. 2021; ():1.

Chicago/Turabian Style

Weijian Zhang; Xianliang Shi; Anqiang Huang; Guowei Hua; Ruud H. Teunter. 2021. "Optimal Stock and Capital Reserve Policies for Emergency Medical Supplies against Epidemic Outbreaks." European Journal of Operational Research , no. : 1.

Articles
Published: 19 May 2021 in International Journal of Production Research
Reads 0
Downloads 0

To seek more business opportunities, cross-market retailers pursue horizontal joint promotion (HJP) to promote their products together. It is important to determine the factors that make cross-market retailers pursue HJP and how HJP affects the retailers' optimal decisions. We address such issues in the context of a shopping mall in which two cross-market retailers pursue HJP with the possible involvement of the shopping mall. We develop game-theoretic models to study whether the shopping mall should provide consumers with coupons that they can obtain from the retailer in the source market and consume at the retailer in the target market. We find that when coupons are offered to consumers, the retailer in the source market has a higher price and will pay more for HJP, but has a smaller demand and a lower profit than the retailer in the target market. Furthermore, when the effect of the coupon is relatively large, both retailers prefer the coupon as they can have higher prices, demands, and profits, and their promotional strategies change with the denomination and effect of the coupon. Conversely, both retailers would reduce investments in HJP because the coupon may bring them lower profits.

ACS Style

Ke Yan; Guowei Hua; T.C.E. Cheng; Shouyang Wang; Jing-Xin Dong. Joint promotion of cross-market retailers: models and analysis. International Journal of Production Research 2021, 1 -22.

AMA Style

Ke Yan, Guowei Hua, T.C.E. Cheng, Shouyang Wang, Jing-Xin Dong. Joint promotion of cross-market retailers: models and analysis. International Journal of Production Research. 2021; ():1-22.

Chicago/Turabian Style

Ke Yan; Guowei Hua; T.C.E. Cheng; Shouyang Wang; Jing-Xin Dong. 2021. "Joint promotion of cross-market retailers: models and analysis." International Journal of Production Research , no. : 1-22.

Journal article
Published: 08 April 2021 in Transportation Research Part E: Logistics and Transportation Review
Reads 0
Downloads 0

Big promotions of online retailers in different shopping festivals often lead to an overwhelming demand surge in parcel delivery. Besides using its own distribution capacity, online retailers usually adopt capacity sharing to cope with the demand surge. Because of the low cost of unmanned distribution, online retailers can adopt unmanned vehicle distribution (UVD) capability sharing. We examine an online retailer’s UVD capacity sharing strategies with a logistics firm under demand surge. We develop sharing models under the unilateral and bidirectional option contracts, from which we derive the optimal ex-ante and ex-post sharing strategies and the corresponding initial, option, and total sharing quantities. We find that if the online retailer wants to secure more UVD capacity in advance, it should use the bidirectional option; otherwise, the unilateral option. Moreover, both the initial sharing and total sharing quantities under the unilateral option are greater than those under the bidirectional option, which however can increase the flexibility of the online retailer. We conduct numerical studies to ascertain the effects of the model parameters on the optimal outcomes. The numerical results show that the degree of demand fluctuation has a greater impact on the initial and total sharing quantities under the unilateral option, and has a greater impact on the option sharing quantity under the bidirectional option. Finally, comparing self-built UVD capacity and UVD capacity sharing, we generate insights to provide guidance for the operations of online retailers.

ACS Style

Shuai Liu; Guowei Hua; T.C.E. Cheng; Jingxin Dong. Unmanned vehicle distribution capacity sharing with demand surge under option contracts. Transportation Research Part E: Logistics and Transportation Review 2021, 149, 102320 .

AMA Style

Shuai Liu, Guowei Hua, T.C.E. Cheng, Jingxin Dong. Unmanned vehicle distribution capacity sharing with demand surge under option contracts. Transportation Research Part E: Logistics and Transportation Review. 2021; 149 ():102320.

Chicago/Turabian Style

Shuai Liu; Guowei Hua; T.C.E. Cheng; Jingxin Dong. 2021. "Unmanned vehicle distribution capacity sharing with demand surge under option contracts." Transportation Research Part E: Logistics and Transportation Review 149, no. : 102320.

Journal article
Published: 15 March 2021 in Sustainability
Reads 0
Downloads 0

Green supply chain management has received increasing attention as consumers have become more environmentally conscious. Manufacturers are making green investments to meet consumers’ demands, while retailers in different markets often engage in cooperative promotion to attract more consumers. This study develops game theoretic models for investigating cooperative promotion for two cross-market firms with different channel structures, i.e., decentralized and centralized. The manufacturer determines the wholesale price for the retailers and the green investment of a product, and the retailers determine the promotional effort and retail price. This study finds that whether the firms join in cooperative promotion mainly depends on the wholesale price, as well as the impacts of the price, green investment, and cooperative promotional activities on the demand. When the wholesale price is relatively low, the retail price of the decentralized green supply chain must be lower than that of the centralized green supply chain. On the contrary, the difference in the retail price between the two green supply chains varies with the impacts of green investment and cooperative promotional activities on demand. In addition, due to the influence of channel structure, the contribution to cooperative promotion of the centralized supply chain is more than that of the decentralized supply chain with the most given conditions. Moreover, as the impact of cooperative promotional activities on demand increases, the centralized green supply chain does not necessarily result in higher profits than the decentralized green supply chain.

ACS Style

Ke Yan; Guowei Hua; T.C.E. Cheng. Green Supply Chain Management with Cooperative Promotion. Sustainability 2021, 13, 3204 .

AMA Style

Ke Yan, Guowei Hua, T.C.E. Cheng. Green Supply Chain Management with Cooperative Promotion. Sustainability. 2021; 13 (6):3204.

Chicago/Turabian Style

Ke Yan; Guowei Hua; T.C.E. Cheng. 2021. "Green Supply Chain Management with Cooperative Promotion." Sustainability 13, no. 6: 3204.

Journal article
Published: 07 November 2020 in Transportation Research Part B: Methodological
Reads 0
Downloads 0

Online platforms for matching supply and demand, as part of the sharing economy, are becoming increasingly important in practice and have seen a steep increase in academic interest. Especially in the taxi/travel industry, platforms such as Uber, Lyft, and Didi Chuxing have become major players. Some of these platforms, including Didi Chuxing, operate two matching systems: Inform, where multiple drivers receive ride details and the first to respond is selected; and Assign, where the platform assigns the driver nearest to the customer. The Inform system allows drivers to select their destinations, but the Assign system minimizes driver-customer distances. This research is the first to explore: (i) how a platform should allocate customer requests to the two systems and set the maximum matching radius (i.e., customer-driver distance), with the objective to minimize the overall average waiting times for customers; and (ii) how taxi drivers select a system, depending on their varying degrees of preference for certain destinations. Using approximate queuing analysis, we derive the optimal decisions for the platform and drivers. These are applied to real-world data from Didi Chuxing, revealing the following managerial insights. The optimal radius is 1-3 kilometers, and is lower during rush hour. For most considered settings, it is optimal to allocate relatively few rides to the Inform system. Most interestingly, if destination selection becomes more important to the average driver, then the platform should not always allocate more requests to the Inform system. Although this may seem counter-intuitive, allocating too many orders to that system would result in many drivers opting for it, leading to very high waiting times in the Assign system.

ACS Style

Luoyi Sun; Ruud H. Teunter; Guowei Hua; Tian Wu. Taxi-hailing platforms: Inform or Assign drivers? Transportation Research Part B: Methodological 2020, 142, 197 -212.

AMA Style

Luoyi Sun, Ruud H. Teunter, Guowei Hua, Tian Wu. Taxi-hailing platforms: Inform or Assign drivers? Transportation Research Part B: Methodological. 2020; 142 ():197-212.

Chicago/Turabian Style

Luoyi Sun; Ruud H. Teunter; Guowei Hua; Tian Wu. 2020. "Taxi-hailing platforms: Inform or Assign drivers?" Transportation Research Part B: Methodological 142, no. : 197-212.

Journal article
Published: 30 August 2020 in Transport Policy
Reads 0
Downloads 0

Given the trend of railway liberalization in Europe and Asia, we explore the effects of introducing low-cost high-speed rail as an answer to the railway reform on air-rail competition. In particular, by proposing a vertically differentiated model, we first derive the optimal pricing policies as well as the corresponding profits and market shares for low-cost high-speed rail (LCR), full-service high-speed rail (FSR) and air transport (Air). We do so for two types of LCR entrants, namely the incumbent entrant (to the FSR company) and the independently operated entrants. For both situations, we prove analytically that introducing LCR leads to reduced FSR and Air fares as well as to reduced Air traffic. The fare and traffic reductions increase with the passenger's time value and with the LCR travel time, while they decrease with the Air unit seat cost. Moreover, all LCR effects are stronger for an independently operated LCR. We apply our model to the Paris-Marseille route, based on data collected from publicly available sources. It is found that introducing an independently owned (incumbent owned) LCR on this route leads to 38% (33%) less air traffic, 20% (14%) less FSR traffic and a 37% (29%) increase in total rail traffic. Furthermore, this comes with increases of 2% (8%) in combined railway profit and 6% (5%) in total social welfare. These results support the decision of French policy makers to have LCR and FSR operated by the same company, as it comes with much higher combined railway profits and almost the same welfare increase as independently owned LCR. Further sensitivity analyses suggest that most LCR passengers would otherwise have traveled by FSR or Air, although LCR also attracts new passengers. In addition, offering a low-cost alternative is more effective if passengers value time more highly. Implications in terms of methodology and industry are provided.

ACS Style

Yixiao Wang; Luoyi Sun; Ruud H. Teunter; Jianhong Wu; Guowei Hua. Effects of introducing low-cost high-speed rail on air-rail competition: Modelling and numerical analysis for Paris-Marseille. Transport Policy 2020, 99, 145 -162.

AMA Style

Yixiao Wang, Luoyi Sun, Ruud H. Teunter, Jianhong Wu, Guowei Hua. Effects of introducing low-cost high-speed rail on air-rail competition: Modelling and numerical analysis for Paris-Marseille. Transport Policy. 2020; 99 ():145-162.

Chicago/Turabian Style

Yixiao Wang; Luoyi Sun; Ruud H. Teunter; Jianhong Wu; Guowei Hua. 2020. "Effects of introducing low-cost high-speed rail on air-rail competition: Modelling and numerical analysis for Paris-Marseille." Transport Policy 99, no. : 145-162.

Journal article
Published: 17 July 2020 in Resources, Conservation and Recycling
Reads 0
Downloads 0

Three-dimensional printing (3DP) or additive manufacturing is regarded as an environmentally friendly and sustainable form of manufacturing, which allows circular manufacturing as the 3D printed waste and products can be recycled for further 3DP operations. Due to the fact that the reclaimed material is commonly perceived to have poorer quality than the virgin material, the pricing of materials and printed products are crucial for consumers to decide their printing and material selection decisions. We consider a closed-loop competitive circular supply chain comprising (1) a 3DP platform that provides 3DP services to print products from virgin and recycled materials, (2) material suppliers that provide virgin and recycled materials (filaments) for the platform, and (3) end users who use the platform to print their products. We derive the prices, demands, and profits of the 3DP platform and material suppliers in Stackelberg equilibrium. We also conduct numerical studies using real-life data to generate practical insights from the analytical findings. Most interestingly, we find that while the platform prefers, both types of suppliers avoid, printing high-quality products from recycled material. We derive management insights and policy implications from the analytical and numerical findings for the closed-loop competitive circular supply chain.

ACS Style

Luoyi Sun; Yixiao Wang; Guowei Hua; T.C.E. Cheng; Jingxin Dong. Virgin or recycled? Optimal pricing of 3D printing platform and material suppliers in a closed-loop competitive circular supply chain. Resources, Conservation and Recycling 2020, 162, 105035 .

AMA Style

Luoyi Sun, Yixiao Wang, Guowei Hua, T.C.E. Cheng, Jingxin Dong. Virgin or recycled? Optimal pricing of 3D printing platform and material suppliers in a closed-loop competitive circular supply chain. Resources, Conservation and Recycling. 2020; 162 ():105035.

Chicago/Turabian Style

Luoyi Sun; Yixiao Wang; Guowei Hua; T.C.E. Cheng; Jingxin Dong. 2020. "Virgin or recycled? Optimal pricing of 3D printing platform and material suppliers in a closed-loop competitive circular supply chain." Resources, Conservation and Recycling 162, no. : 105035.

Article
Published: 11 April 2020 in Journal of Systems Science and Systems Engineering
Reads 0
Downloads 0

In this paper, we consider the strategic interaction between the normal and sharp traders in a dynamic limit-order security market and its impact on the Chinese security market at different market volatility levels. We find that when the proportion of sharp traders is less than a threshold in an order-driven market, the sharp traders who submit limit orders will get more returns than the normal traders. The participation of sharp traders in the market can increase the total social welfare of all the traders. In addition, we show that:(1) when the market volatility level is generally low, the short-term sharp traders benefit from larger volatility; (2) when the market volatility level is generally high, the insider/cheating sharp traders with high-frequent trading rather than the short-term sharp traders benefit from extreme high volatility; (3) when the market volatility level is moderate, the sharp traders can increase market liquidity.

ACS Style

Mingyang Zhang; Juliang Zhang; T.C.E. Cheng; Guowei Hua. How do Normal Traders and Sharp Traders Make Profits in the Chinese Security Market? Journal of Systems Science and Systems Engineering 2020, 29, 203 -234.

AMA Style

Mingyang Zhang, Juliang Zhang, T.C.E. Cheng, Guowei Hua. How do Normal Traders and Sharp Traders Make Profits in the Chinese Security Market? Journal of Systems Science and Systems Engineering. 2020; 29 (2):203-234.

Chicago/Turabian Style

Mingyang Zhang; Juliang Zhang; T.C.E. Cheng; Guowei Hua. 2020. "How do Normal Traders and Sharp Traders Make Profits in the Chinese Security Market?" Journal of Systems Science and Systems Engineering 29, no. 2: 203-234.

Journal article
Published: 20 February 2020 in Transportation Research Part A: Policy and Practice
Reads 0
Downloads 0

This study analyzes aviation markets in the five countries in Central Asia. Panel data spanning from 2007 to 2015 are used to estimate airline service patterns in origin-destination markets. Econometric estimates for domestic and international markets are subsequently benchmarked, and route groups are paired by alternative matching algorithms. Counterfactual analysis is conducted based on the service model estimation and matching results. Our investigation suggests that although the Central Asia–China markets are characterized by poor connectivity and high airfares, more liberal aviation policies such as those proposed by the Belt and Road initiative are likely to help overcome the existing high service barriers. In particular, our counterfactual analysis suggests that if the Central Asia–China markets were regulated and operated in a similar way to the routes between Central Asia and other states, the probability of having aviation services between cities in China and Central Asia would increase substantially, with more direct flights to a larger number of Chinese cities such as Xiamen, Shenzhen, Hangzhou, Qingdao, Chengdu, Kunming etc. We recommend further liberalizations between Central Asia and the region’s major trade partners.

ACS Style

Kun Wang; Xiaowen Fu; Achim I. Czerny; Guowei Hua; Zheng Lei. Modeling the potential for aviation liberalization in Central Asia – Market analysis and implications for the Belt and Road Initiative. Transportation Research Part A: Policy and Practice 2020, 134, 184 -210.

AMA Style

Kun Wang, Xiaowen Fu, Achim I. Czerny, Guowei Hua, Zheng Lei. Modeling the potential for aviation liberalization in Central Asia – Market analysis and implications for the Belt and Road Initiative. Transportation Research Part A: Policy and Practice. 2020; 134 ():184-210.

Chicago/Turabian Style

Kun Wang; Xiaowen Fu; Achim I. Czerny; Guowei Hua; Zheng Lei. 2020. "Modeling the potential for aviation liberalization in Central Asia – Market analysis and implications for the Belt and Road Initiative." Transportation Research Part A: Policy and Practice 134, no. : 184-210.

Journal article
Published: 07 January 2020 in International Journal of Production Economics
Reads 0
Downloads 0

3D printing, which is synonymous with the additive manufacturing is gaining popularity, which leads to emergence of 3D printing platforms. The pricing strategies for such platforms are quite complicated, since different kinds of products/services could be provided on the same platform at the same time. We explore the optimal pricing strategy for a 3D printing platform that sells standard and customized products, taking products' differentiation into account, where the platform and designer seek to maximize their profits, while the customer wishes to maximize their utility gained from the product purchase. In the basic model, we derive the platform's optimal prices when the platform allows the designer to add a mark-up for the standard product. We find that the standard product's final price increases with its own quality and decreases with the customized product's quality. When labour cost is low, the customized product's final price increases with its own quality and decreases with the standard product's quality. We also find that the designer's optimal mark-up for the standard product increases with the printing cost of the standard product and quality of the customized product, and decreases with the interaction cost, printing cost of the customized product, and quality of the standard product. We compare the platform's profit in the case of “partial pricing power”, in which the platform allows the designer to add a mark-up, with that in the case of “full pricing power”, in which the platform sets the final price of the standard product and charges a commission fee as its revenue. We find that if the difference in the quality between the standard and customized products is high, then the strategy of charging a commission fee at a rate of more than 25% is more profitable than the strategy of allowing the designer to add a mark-up to the reservation price.

ACS Style

Luoyi Sun; Guowei Hua; T.C.E. Cheng; Yixiao Wang. How to price 3D-printed products? Pricing strategy for 3D printing platforms. International Journal of Production Economics 2020, 226, 107600 .

AMA Style

Luoyi Sun, Guowei Hua, T.C.E. Cheng, Yixiao Wang. How to price 3D-printed products? Pricing strategy for 3D printing platforms. International Journal of Production Economics. 2020; 226 ():107600.

Chicago/Turabian Style

Luoyi Sun; Guowei Hua; T.C.E. Cheng; Yixiao Wang. 2020. "How to price 3D-printed products? Pricing strategy for 3D printing platforms." International Journal of Production Economics 226, no. : 107600.

Journal article
Published: 16 November 2019 in Omega
Reads 0
Downloads 0

Barter exchange, as an alternative to move distressed inventory, has become increasingly popular in business. Many companies barter their unsold product for the product they need via barter exchange platforms at full prices. In this paper we consider the newsvendor problem with the barter exchange option. A retailer (the newsvendor) facing stochastic demand not only sells its product, but also buys other product that it needs from the market. It either trades its unsold product for the product it needs on a barter platform or disposes of its unsold product at discounted prices at the end of the selling season like in the classical newsvendor model. We derive the retailer’s optimal order quantity, then analytically and numerically examine the impacts of barter on the retailer’s inventory decisions and profit. We find that barter exchange can help the retailer to manage demand uncertainty and improve profit. The optimal order quantity decreases with barter commission and barter uncertainty, while increases with demand uncertainty and the value of the product that the retailer needs. Barter is more advantageous with lower barter commission, larger demand uncertainty, lower barter uncertainty, and higher value of the product it needs.

ACS Style

Guowei Hua; Yi Zhang; T.C.E. Cheng; Shouyang Wang; Juliang Zhang. The newsvendor problem with barter exchange. Omega 2019, 92, 102149 .

AMA Style

Guowei Hua, Yi Zhang, T.C.E. Cheng, Shouyang Wang, Juliang Zhang. The newsvendor problem with barter exchange. Omega. 2019; 92 ():102149.

Chicago/Turabian Style

Guowei Hua; Yi Zhang; T.C.E. Cheng; Shouyang Wang; Juliang Zhang. 2019. "The newsvendor problem with barter exchange." Omega 92, no. : 102149.

Journal article
Published: 14 May 2019 in International Journal of Production Economics
Reads 0
Downloads 0

In order to eliminate the information asymmetry of supply and demand in transport service market, online car hailing platforms appear recent years. Almost all the transport service markets have the property of spatial differentiation, i.e, passengers' demand and vehicle supply are subject to different distributions in different regions at different time. Under the framework of two-sided market theory, this paper develops an intermediary pricing model for transport service market to evaluate the impact of spatial differentiation and network externality on online car hailing platform's pricing mechanism, based on the analysis of transport services' supply-demand matching. The analytic solution shows that the optimal price of the online car hailing platform is decided by the degree of heterogeneity in customer valuation on demand side and driver cost on supply side. Given optimal price on demand side, supply price in a region directly determines the supply of transport service in the same region, has cross effect on the supply in other region, and has indirect effect on demand price through the aggregate supply. Based on the trip record data of New York City, the simulation shows that online car hailing platform try to customize higher prices to attract more drivers and alleviate the passengers' demand pressure in morning rush hour. Furthermore, the simulation also shows that the disparity of the flow density in adjacent areas may affect the price adjustment mechanism of the online car hailing platform, and if the regional disparity further expands, the optimal choice of the platform is to increase the price of supply side, rather than the demand side.

ACS Style

Tian Wu; Mengbo Zhang; Xin Tian; Shouyang Wang; Guowei Hua. Spatial differentiation and network externality in pricing mechanism of online car hailing platform. International Journal of Production Economics 2019, 219, 275 -283.

AMA Style

Tian Wu, Mengbo Zhang, Xin Tian, Shouyang Wang, Guowei Hua. Spatial differentiation and network externality in pricing mechanism of online car hailing platform. International Journal of Production Economics. 2019; 219 ():275-283.

Chicago/Turabian Style

Tian Wu; Mengbo Zhang; Xin Tian; Shouyang Wang; Guowei Hua. 2019. "Spatial differentiation and network externality in pricing mechanism of online car hailing platform." International Journal of Production Economics 219, no. : 275-283.

Journal article
Published: 04 May 2019 in European Journal of Operational Research
Reads 0
Downloads 0

Online car hailing platforms are rapidly gaining popularity. Unlike most two-sided markets, these platforms have pricing power. The price for a specific customer ride request affects the number of interested drivers and the likelihood that a customer will accept a selected driver (and not opt for a regular taxi service). This study determines the optimal pricing strategy for online car hailing platforms, taking both ride details and driver location into account, and assuming that drivers and customers maximize utility. We do so for two types of driver selection: first to respond or closest to the customer. Under selection of the first driver to respond, we find that the platform price consists of a ride length based fare (set relative to the competing regular taxi fare) and a rush hour congestion fee, and increases with the customer waiting cost. Furthermore, the platform price is below the regular taxi fare if traffic conditions are good, drivers have low profit expectations, and the platform commission is low. We also discuss the effects on price and profit if the platform switches from first-to-respond to selecting the closest driver, which the popular Didi Chuxing platform has recently done in many Chinese cities. A numerical study based on the Beijing market further illustrates the findings.

ACS Style

Luoyi Sun; Ruud H. Teunter; M. Zied Babai; Guowei Hua. Optimal pricing for ride-sourcing platforms. European Journal of Operational Research 2019, 278, 783 -795.

AMA Style

Luoyi Sun, Ruud H. Teunter, M. Zied Babai, Guowei Hua. Optimal pricing for ride-sourcing platforms. European Journal of Operational Research. 2019; 278 (3):783-795.

Chicago/Turabian Style

Luoyi Sun; Ruud H. Teunter; M. Zied Babai; Guowei Hua. 2019. "Optimal pricing for ride-sourcing platforms." European Journal of Operational Research 278, no. 3: 783-795.

Journal article
Published: 23 April 2019 in International Journal of Production Economics
Reads 0
Downloads 0

This paper investigates the impacts of a new type of probabilistic selling (PS) where the retailer orders specific products and package some as a discounted physical probabilistic product (PPP) rather than merely a virtual choice. We call this PS strategy as physical probabilistic selling (PPS). The price gap between the specific products and the probabilistic product results in demand reshape, i.e., some customers who originally buy specific products will switch to buying the probabilistic product, which decreases aggregate demand uncertainty. However, the price discount decreases the profit margin. Considering this trade-off, we develop a three-product newsvendor model to address the question of how to set the price for the PPP and make inventory allocation decisions. We prove that there are two effects under PPS, namely the risk pooling effect due to demand reshape and the risk diversification effect due to inventory flexibility. With demand uncertainty, PPS can improve the retailer's profit at lower inventory levels with proper demand reshape induced by the optimal price discount. PPS is more profitable with smaller product differentiation, higher customer price sensitivity, higher demand uncertainty, and lower package cost. With supply uncertainty, we demonstrate through numerical studies that PPS is a viable strategy to combat asymmetrical supply risk that yields higher profits and service levels.

ACS Style

Yi Zhang; Guowei Hua; Edwin Cheng; Juliang Zhang; Vicenc Fernandez; Vincenc Fernandez. Risk pooling through physical probabilistic selling. International Journal of Production Economics 2019, 219, 295 -311.

AMA Style

Yi Zhang, Guowei Hua, Edwin Cheng, Juliang Zhang, Vicenc Fernandez, Vincenc Fernandez. Risk pooling through physical probabilistic selling. International Journal of Production Economics. 2019; 219 ():295-311.

Chicago/Turabian Style

Yi Zhang; Guowei Hua; Edwin Cheng; Juliang Zhang; Vicenc Fernandez; Vincenc Fernandez. 2019. "Risk pooling through physical probabilistic selling." International Journal of Production Economics 219, no. : 295-311.

Article
Published: 07 December 2018 in Journal of Systems Science and Complexity
Reads 0
Downloads 0

In recent years, there are many crimes related drug fraud occuring in China and many experts think that the main cause is that China Food and Drug Administration (CFDA) adopts announced inspection (AI). In order to circumvent this difficulty, CFDA has exploited unannounced inspection (UI) since 2014. In this paper, the authors study the problem of which one performs better, AI or UI. Specifically, the authors consider a supervisor, which decides the inspection approach, inspection strength and punishment to force the firm to put self-inspection effort to meet the requirements of Good Manufacturing Practice, and a firm, which produces a drug and decides its self-inspection effort. The authors use game theory to model this problem, characterize the equilibrium policies under AI, and compare the effects of the two approaches on preventing drug fraud under complete and incomplete information. The results show that under the complete information, UI performs better if the firm’s technical level and the inspection cost are low and AI performs better otherwise. When the supervisor doesn’t know the firm’s technical level, if the low technical level is high, AI performs better. Otherwise, UI performs better if the inspection cost is low and AI performs better if the inspection cost is high.

ACS Style

Manman Zhang; Juliang Zhang; T.C.E. Cheng; Jose Maria Sallan; Guowei Hua. Which Inspection Approach Is Better to Prevent Drug Fraud: Announced or Unannounced? Journal of Systems Science and Complexity 2018, 31, 1571 -1590.

AMA Style

Manman Zhang, Juliang Zhang, T.C.E. Cheng, Jose Maria Sallan, Guowei Hua. Which Inspection Approach Is Better to Prevent Drug Fraud: Announced or Unannounced? Journal of Systems Science and Complexity. 2018; 31 (6):1571-1590.

Chicago/Turabian Style

Manman Zhang; Juliang Zhang; T.C.E. Cheng; Jose Maria Sallan; Guowei Hua. 2018. "Which Inspection Approach Is Better to Prevent Drug Fraud: Announced or Unannounced?" Journal of Systems Science and Complexity 31, no. 6: 1571-1590.

Journal article
Published: 19 November 2018 in Sustainability
Reads 0
Downloads 0

With the extensive use of smart-phone applications and online payment systems, more travelers choose to participate in ridesharing activities. In this paper, a multi-modal route choice model is proposed by incorporating ridesharing and public transit in a single-origin-destination (OD)-pair network. Due to the presence of ridesharing, travelers not only choose routes (including main road and side road), but also decide travel modes (including solo driver, ridesharing driver, ridesharing passenger, and transit passenger) to minimize travelers’ generalized travel cost (not their actual travel cost due to the existence of car capacity constraints). The proposed model is expressed as an equivalent complementarity problem. Finally, the impacts of key factors on ridesharing behavior in numerical examples are discussed. The equilibrium results show that passengers’ rewards and toll charge of solo drivers on main road significantly affect the travelers’ route and mode choice behavior, and an increase of passengers’ rewards (toll) motivates (forces) more travelers to take environmentally friendly travel modes.

ACS Style

Meng Li; Guowei Hua; Haijun Huang. A Multi-Modal Route Choice Model with Ridesharing and Public Transit. Sustainability 2018, 10, 4275 .

AMA Style

Meng Li, Guowei Hua, Haijun Huang. A Multi-Modal Route Choice Model with Ridesharing and Public Transit. Sustainability. 2018; 10 (11):4275.

Chicago/Turabian Style

Meng Li; Guowei Hua; Haijun Huang. 2018. "A Multi-Modal Route Choice Model with Ridesharing and Public Transit." Sustainability 10, no. 11: 4275.

Journal article
Published: 13 October 2018 in Annals of Operations Research
Reads 0
Downloads 0

Commonly encountered in cold chain logistics, third-party distribution firms are required to deliver temperature-sensitive food products to various retailers with two kinds of time-window constraints: (1) the delivery service must begin within the time windows imposed by the retailers (called node time windows) and (2) each vehicle route is available only in a predefined time interval prescribed by the government (called arc time windows). We study the effects of the retailer time window type (i.e., density of the node time-window constraints) and other cost-related factors on a distribution firm’s legitimacy choice (i.e., the firm chooses to either comply with or violate the governmental time-window policy), food quality, and pollutant emissions in the urban environment. We model the problem as an intractable vehicle routing problem with node and arc time windows and develop a genetic algorithm to tackle it. We conduct a case study to generate the managerial insights on dealing with time windows. We find that the governmental time windows will increase the distribution cost. The governmental time windows has a negative effect on pollutant emissions while showing a positive effect on food safety. Given governmental time windows, a higher demand for node time windows will result in more governmental time-window violations or lower vehicle load factor, which depends on the vehicle fixed cost, fuel price, and government penalty.

ACS Style

Yi Zhang; Guowei Hua; T. C. E. Cheng; Juliang Zhang. Cold chain distribution: How to deal with node and arc time windows? Annals of Operations Research 2018, 291, 1127 -1151.

AMA Style

Yi Zhang, Guowei Hua, T. C. E. Cheng, Juliang Zhang. Cold chain distribution: How to deal with node and arc time windows? Annals of Operations Research. 2018; 291 (1-2):1127-1151.

Chicago/Turabian Style

Yi Zhang; Guowei Hua; T. C. E. Cheng; Juliang Zhang. 2018. "Cold chain distribution: How to deal with node and arc time windows?" Annals of Operations Research 291, no. 1-2: 1127-1151.

Journal article
Published: 01 October 2018 in European Journal of Operational Research
Reads 0
Downloads 0
ACS Style

Mingyang Zhang; Juliang Zhang; T.C.E. Cheng; Guowei Hua. Why and how do branders sell new products on flash sale platforms? European Journal of Operational Research 2018, 270, 337 -351.

AMA Style

Mingyang Zhang, Juliang Zhang, T.C.E. Cheng, Guowei Hua. Why and how do branders sell new products on flash sale platforms? European Journal of Operational Research. 2018; 270 (1):337-351.

Chicago/Turabian Style

Mingyang Zhang; Juliang Zhang; T.C.E. Cheng; Guowei Hua. 2018. "Why and how do branders sell new products on flash sale platforms?" European Journal of Operational Research 270, no. 1: 337-351.

Journal article
Published: 01 February 2018 in International Journal of Production Economics
Reads 0
Downloads 0

Demand variability is prevailing in the current rapidly changing business environment, which makes it difficult for a retailer that sells multiple substitutable products to determine the optimal inventory. To combat demand uncertainty, both strategies of inventory substitution and probabilistic selling can be used. Although the two strategies differ in operation, we believe that they share a common feature in combating demand uncertainty by encouraging some customers to give up some specific demand for the product to enable demand substitution. It is interesting to explore which strategy is more advantageous to the retailer. We endogenize the inventory decision and demonstrate the efficiency of probabilistic selling through demand substitution. Then we analyze some special cases without cannibalization, and computationally evaluate the profitability and inventory decisions of the two strategies in a more general case to generate managerial insights. The results show that the retailer should adjust inventory decisions depending on products' substitution possibility. The interesting computational result is that probabilistic selling is more profitable with relatively lower product similarity and higher price-sensitive customers, while inventory substitution outperforms probabilistic selling with higher product similarity. Higher demand uncertainty will increase the profitability advantage of probabilistic selling over inventory substitution.Peer ReviewedPostprint (author's final draft

ACS Style

Yi Zhang; Guowei Hua; Shouyang Wang; Juliang Zhang; Vicenc Fernandez. Managing demand uncertainty: Probabilistic selling versus inventory substitution. International Journal of Production Economics 2018, 196, 56 -67.

AMA Style

Yi Zhang, Guowei Hua, Shouyang Wang, Juliang Zhang, Vicenc Fernandez. Managing demand uncertainty: Probabilistic selling versus inventory substitution. International Journal of Production Economics. 2018; 196 ():56-67.

Chicago/Turabian Style

Yi Zhang; Guowei Hua; Shouyang Wang; Juliang Zhang; Vicenc Fernandez. 2018. "Managing demand uncertainty: Probabilistic selling versus inventory substitution." International Journal of Production Economics 196, no. : 56-67.