During the recent COVID-19 (CoV) global outbreak, there is a sharp decline of revenue of on-demand ride-hailing (ODR) platforms because people have serious worries of infection in the shared vehicles. Blockchain, which supports cryptocurrency and creates full traceability of the service history of each car and driver, may come to rescue by allowing the platform to offer only the “safe cars” to consumers. Motivated by the real world challenges associated with the CoV outbreak for the ODR platform, we build game-theoretical models based on the M/M/n queuing system to explore if and how blockchain can help. In the basic model, the ODR platform decides the service price and special hygiene level. Comparing between the cases with and without blockchain, we find that blockchain implementation increases both the service price and hygiene level. In addition, when the consumers’ inherent worry of infection is substantially large, implementing blockchain achieves all-win for the ODR platform, drivers and consumers. In the extended models, we first consider the case when the special hygiene level is determined by the drivers under a mixed-leadership game and then explore the case when customers are risk averse. The main findings about blockchain adoption remain valid in both cases. However, when the drivers take charge of the special hygiene level, both optimal decisions are lower in most cases. It is also important to make efforts to reduce consumers’ feeling volatility toward service valuation for improving the value of blockchain adoption and related performances.
Fashion supply chain members now search for trade-offs between sustainable investment and the related incentives, such as savings on environmental taxes and gains in incremental demands. To evaluate the economic and environmental performance of sustainable investment from a power perspective, we develop an analytical model to study a two-echelon sustainable supply chain consisting of one retailer and one manufacturer with three different power structures. We derive the optimal solutions for various cases associated with different supply chain power structures and sustainable investors. Though it is beneficial for both the manufacturer and retailer to make sustainable investment, they often utilize high power to gain economic benefit with less sustainable investment. Interestingly, the follower with less supply chain power has more incentive to make a sustainable effort to achieve a higher profit. The optimal amount of sustainable investment in the apparel manufacturer investment case is greater than that in the retailer investment case in most scenarios.
We are now living in the big data era, where firms can improve their decision makings by adopting big data technology to utilize mass information. To explore the effects of the big data technology, we build an analytical model to study the sustainable investment in a supply chain, consisting of one manufacturer and one retailer, by using Bayesian information updating approach. We derive the optimal sustainable investment level for the manufacturer and the optimal order quantity for the retailer. Comparing the results with and without the big data technology, we find that whether the manufacturer should make more sustainable investment when the retailer adopts the big data technology depends on the service level at the retailer side. Interestingly, it is not always optimal for the retailer to adopt the big data technology. We identify the conditions under which the manufacturer and retailer are better off with the big data technology. In addition, we investigate the impact of the number of observations regarding the market information and find that the optimal decisions and profits increase in the number of the observations, if and only if the service level is low.
1 October 2014 in European Journal of Operational Research