International Journal of Advanced Operations Management (7 papers in press)
Airline Capacity Strategies: Worldwide Analysis, Taxonomies and Regional Comparison
by Saleh Alkhatib, Yazan Migdadi
Abstract: Airline capacity strategy is a crucial element of any airline operations management. However, there is no clear classification of airline capacity strategies, their taxonomies and how they differ across regions worldwide. Four stages methodology have been used: literature review content analysis, sample design, data collection/preparation and data analysis. Data for more than 350 airlines from six regions worldwide were collected, prepared and analyzed. The K-means clustering test was used for this purpose. Five main airline capacity strategies were identified and taxonomized: Low Capacity-Moderate Destination; Very-Low Capacity; Moderate Capacity-People focus; Low Capacity-Onboard focus; and Very-High Capacity-Selective Countries strategies. In addition, main capacity strategy patterns within each region were identified too. Moreover, a cross regional comparison identifies the key features, similarities and differences between regions. Finally, some suggestion for airlines were given.
Keywords: Airline industry; Capacity Strategies; Taxonomy; Operations management; K-means test.
Operations and marketing alignment to reduce operational risk: How airlines circumvent well-guarded markets
by Kuangnen Cheng
Abstract: Building upon the concepts that 1) efficiency can be achieved by a better integration between operations and marketing functional units; and, 2) the intensity of competition is depicted by the correlation between service frequency and price dispersion, this empirical investigation intends to explain how airlines apply an operations and marketing alignment strategy to achieve a competitive advantage. Using U.S. domestic carrier competition behaviors as an example, the methodology involves applying the Pearson Product Moment Correlation (PPMC) to analyze 241,230 observations from panel data of real-life service frequencies and price dispersion from 2014, 2016 and 2017. The findings show that to align internal processes with external events, firms may wish to 1) increase marketing efforts to gain market share or maintain competitiveness in markets shielded by historical rigid endogenous barriers or long-established reputations; 2) reduce operational resources and fall back from entrenched primary markets that are strategically guarded by powerful incumbents; (3) increase integration of operations and marketing to potentially expand into new secondary markets, since fare structures and services are increasingly indistinguishable between strategic groups.
Keywords: Alignment; entrenched markets; operational efficiency; operational risk; price dispersion.
A simulation-based optimization approach for multi-objective inventory control of perishable products in closed-loop supply chains under uncertainty
by Aliakbar Hasani, Majid Eskandarpour, Mohammad Fattahi
Abstract: This paper investigates the inventory control of perishable products with a limited storage lifetime in closed-loop supply chains. Uncertainties related to customers demands, the return rate of goods, and qualities of the returned products are considered. An efficient interactive response surface methodology is adopted by using a statistical simulation approach. The desirability function is taken into account a minimum desirability level of multiple objectives, the potential correlation between the considered objectives, and minimization of uncontrollable variables or noise factors effect. The experimental results indicate the efficiency of the proposed simulation-based optimization approach in handling correlated multiple objectives for inventory control of perishable products in closed-loop supply chains under uncertainty. Considered risks in the supply chain echelons and fair costs allocation has been balanced efficiently via using the proposed interactive approach to solving the multi-objective problem. Finally, the robustness of the obtained solutions is assessed under variation in weights of the response variables.
Keywords: Closed-loop supply chain; Inventory control; Uncertainty; Desirability function; Interactive; Simulation-based optimization approach.
Evaluating the barriers to the presence of operation and maintenance contractors in the pre-occupancy stages of infrastructure projects: A case study of road infrastructure projects
by Nazanin Kordestani, Ehsan Saghatforoush, Hamidreza Athari Nikooravan, Christopher Preece
Abstract: Road construction projects play a key role to achieve economic and social developments in countries. These projects require huge costs to maintain them in order to prevent early destruction and to reduce duplications. One of the main challenges of these projects is not taking care of operation and maintenance. This issue has always been an important technique in project management by considering these concepts in the initial phases of the project. These concepts are affective on final success of the project and emphasize the utilization of knowledge and experience of operation and maintenance in the initial stages of the projects, and require the presence of contractors in these stages to reduce problems. On the other hand, the presence of these people has always been accompanied with obstacles that should be identified and resolved. Since no comprehensive study has examined the obstacles to applying these concepts in road infrastructure projects to focus on road construction projects in Iran, the researchers of this study decided to examine them. This study was conducted to evaluate the obstacles obtained from library studies and those obtained from case studies conducted by semi-structured interviews (road construction projects in Iran), and finally a framework of these obstacles is presented as the most significant obstacles to transfer knowledge from the operation and maintenance phase to the initial phases of the project. Managers and stakeholders of the project can evaluate the obtained findings and apply them to share their knowledge and experience more effectively. Finally, it was found that more attention of various project stakeholders is required and as a basis, helps researchers to find solutions to facilitate and improve the usage of these concepts in projects.
Keywords: Road infrastructure projects; maintenance; ultimate success; barriers to the presence; pre-occupancy stages; operation and maintenance (O&M).
A TOPSIS, VIKOR and DEA Integrated Evaluation Method with BELIEF Structure under Uncertainty to Rank Alternatives
by Amir Amini, Alireza Alinezhad, Fahimeh Yazdipoor
Abstract: Across diverse science branches and fields multi-criteria decision making (MCDM) methods have received much attention from researchers and practitioners in evaluating, assessing and ranking alternatives as a sub-discipline and full-grown branch of operations research. This study proposes a combined method, based on a new compromised solution method and data envelopment analysis (DEA) to evaluate the efficiency of decision-making units (DMUs). By using the technique for order of preference by similarity to ideal solution (TOPSIS) and VIKOR method, in the new compromised programming approach two concepts are considered simultaneously. First, the optimal alternative is closer to positive ideal solution (PIS) and farther from negative ideal solution (NIS). Second, the proposed method provides a maximum group utility for the majority and a minimum of an individual regret for the opponent. In this method weight of efficiency witch obtained from new compromised solution method is multiplied by the weight of CCR model of DEA. The problem involves BELIEF parameters in the solution procedure. Thus, the new proposed method that applied the advantages of TOPSIS, VIKOR and DEA and belief structure simultaneously was used as a group decision making problem to exploit many experts judgments. Finally, to illustrate the proposed method, an illustrative example is provided.
Keywords: TOPSIS; VIKOR; DEA; Compromised Solution Method; Belief Structure.
Exploring the relationships between continuous improvement and predictive analytics
by Lanndon Ocampo, Brian Galli
Abstract: This study aimed to examine the elements and applications of Predictive Analytics (PA) models within the field of Continuous Improvement (CI). While the roles of data science, PA, and Big Data have been explored in the current literature (e.g., supply chain management), fragmented insights scarcely exist concerning the role of PA on CI initiatives. Articles concerning the role of PA and BI in CI projects were utilized in a systematic literature review. Furthermore, the paper stresses the vital role that Big Data Analytics plays in both CI and PA during decision-making. The paper studies other important CI and PA aspects that pertain to Continuous Improvement projects, which are aspects that are often overlooked in the existing literature. The findings from this study emphasize the critical role that PA tools and concepts can and should have in CI initiatives. Critical organizational and operational structures also need to be implemented to establish and maintain the use of PA tools and concepts in CI initiatives. Overall, this paper serves to fill the gap that overlooks the relationship between these two variables.
Keywords: Data; Predictive Analytics; Continuous Improvement; Business Intelligence; Big Data.
Special Issue on: Lean, Agile, Resilient and Green Supply Chain Management
Trade-off among lean, agile, resilient and green paradigms: An empirical study on pharmaceutical industry in Jordan using a TOPSIS-Entropy Method
by Moutaz Alazab
Abstract: This study proposes an integrated multi-criteria decision analysis method (MCDM) to analyze trade-offs among different supply chain management (SCM) paradigms associated with competitive priorities. The study employs the entropy method to derive the alternative weights of the evaluation criteria. The study also employs the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) to rank feasible alternatives in order of preference, and then measure trade-offs among the conflicting objectives. A sensitivity analysis is performed to confirm the robustness of the proposed model. An empirical study approach is used to identify the trade-offs in the pharmaceutical supply chains context. The results indicate that the TOPSIS and entropy methods can be utilized in a multi-decision analysis process in which SCM paradigms should be implemented in order to positively influence the competitive position. The findings also reveal that competitive priorities differ between each paradigm. For the pharmaceutical industry of Jordan, the sequence of competitive priorities that arise from this study is thus: first quality should be developed, then know-how, flexibility , delivery, customer focus, innovation, and finally, cost. This finding represents that, the competitive priority that is most affected by the SCM paradigms is the 'quality' priority.
Keywords: Trade-offs; Supply Chain Management Paradigms; Entropy Weight; TOPSIS Method; Competitive Priorities.