Purpose: This paper aims to study the pricing problems on the two-sided market for cases of monopoly and duopoly competition, specifically investigating the impact of platform service quality on the market. Theoretical analysis and computational studies are conducted to investigate the impact of different parameters on the system outcomes. Design/methodology/approach: Mathematical formulations are proposed for cases of monopoly and duopoly competition. For monopolistic market, the optimal pricing and service quality strategies are obtained using mathematical programming method. For duopolistic market, the equilibrium outcomes are derived by game theory. Sensitivity analysis and numerical studies are also adopted to investigate the impact of different parameters. Findings: For monopolistic market, the platform will provide a low service quality when the service cost parameter is large. However, when the cost parameter is small, the platform provides a higher service quality and higher registration prices. Furthermore, the sum of the optimal prices is proportional to the service quality and inversely proportional to the user price sensitivity. For duopolistic market, the competitive equilibrium prices exist under a certain condition. The determinants of equilibrium prices are the gap between the service qualities of two platforms and the cross-group externalities. Originality/value: For monopolistic market, this paper specifies the role of platform service quality in determining the platform’s pricing strategy. For duopolistic market, this paper presents a market sharing mechanism between two platforms and explores the equilibrium pricing strategies for platforms with different service quality level.
In recent times, there has been a sharp increase in the congestion of ground transportation, the scarcity of land resources, and various disasters. Hence, there is an urgent need to find an effective and sustainable approach to transportation. The construction of an underground logistics network, where transportation activities occur beneath the surface of the ground, is anticipated to emerge as a future trend. This study aims to formulate a resilient-maximizing plan for the underground logistics network, ensuring optimal meeting of transportation demands in the aftermath of ground disasters. Accordingly, a two-stage linear programming model is established to determine the layout plan for the most resilient underground logistics network. The first phase of the model is designed to generate viable layouts for the underground logistics network, while the second phase is dedicated to evaluating the resilience of the proposed layout plan. During the evaluation of network resilience, Monte Carlo simulations are used to simulate disaster scenarios. Given the inherent complexity of the model, the traditional solver cannot efficiently solve the problem. Thus, a new hybrid heuristic algorithm is designed to obtain solutions that maximize network resilience. The results show the effectiveness of the designed algorithm and the significant improvement in network resilience achieved by numerical experiments. Moreover, sensitivity analyses are conducted to reveal the relationships between resilience and budget, as well as resilience and the capacity of underground pipelines. It has a significant impact on sustainability when making decisions regarding network planning.
Local Container Drayage Problem (LCDP) refers to the optimization of the process of planning and scheduling container trucks between a terminal and customers to offer door-to-door service to customers in a local area. The time required for (un)packing containers at customers’ sites are often relatively long and uncertain due to the current (un)packing work level and unexpected deviations in operational situations, which has a significant influence on the planning and scheduling of the container transportation process. This paper examines the LCDP with Separable tractors and trailers, and additionally with consideration of (un)packing time Uncertainties (LCDPSU). A proactive strategy is employed to tackle the uncertainty by proposing a “model robust” bi-objective optimization model to balance the tradeoff between operational cost, which includes traveling cost and tractor deployment setup cost, and robustness, which is represented as an exponential expression of the time buffer between two stages of each individual task. The deterministic version of our problem is proved to be NP hard, and an Ant Colony Optimization (ACO) scheme is therefore proposed to search for feasible solutions in which the Zoutendijk feasible direction algorithm is embedded in order to tackle the nonlinearity brought in by the robustness of the model. Numerical experiments are conducted to validate the efficiencies and effectivenesses of the proposed models and methods, and managerial implications are drawn from the numerical results.
25 December 2023 in Flexible Services and Manufacturing Journal
Integrated three separate technical streams into one unified Artificial Intelligence‑based spatiotemporal sustainability decision‑support framework: machine‑learning forecasting (Random Forest, XGBoost, Long short-term memory), Geographic information system spatial hotspot analysis and System dynamics causal simulation.