International Journal of Applied Decision Sciences (24 papers in press)
CRITICAL DIVERSITY DIMENSIONS INFLUENCING EFFECTIVE DIVERSE WORKFORCE: A GREY-DEMATEL APPROACH
by Mavis Agyapomah Baafi, Jiang Xin-Ying, Ebenezer Fiifi Emire Atta Mills
Abstract: In an attempt to increase organisational innovativeness and productivity, there is a need to identify the key diversity dimensions needed in the telecommunication industry of Ghana and the degree of influence and significance of these diversity dimensions. The contribution of this paper is in the proposed approach that combines the grey-DEMATEL to evaluate relevant diversity dimensions and their influence and significance. Diversity dimensions were sourced from literature and assessed by fifteen experts. The findings revealed that the critical diversity dimensions which influence effective diversified workforce are age, educational level, gender, personality, ethnicity and cultural values, and physical abilities and characteristics. Age and gender are characterised as reason diversity dimensions, i.e., essential diversity dimensions influencing other dimensions. The managerial implication is that in designing 2 M.A. Baafi et al. strategies to achieve an effective and efficient diverse workforce that contributes to higher productivity or increased return on investment, prominence should be placed on the critical diversity dimensions.
Keywords: diversity dimension; workforce; grey-DEMATEL; mobile telecommunication industry; Ghana.
Multi-Scenario and Multi-Criteria Approach to Evaluate Prediction Techniques Used to Recognize Failure Patterns
by Mahdi Mohammadi Tehrani, Mobin Mohammadsadegh, Yvan Beauregard, Jean-Pierre Kenne, Michel Rioux
Abstract: Predicting the next failure of a specific component in a machine, results in higher performance of the equipment in terms of its reliability. Finding the most efficient, applicable, and precise prediction method has always been a challenge . This study examine the five most applicable prediction methods used to predict HAVC filter blockage. Considering different scenarios that use Design of Experiment (DOE),diverse performance metrics are defined and calculated to compare the prediction methods. A multiple criteria decision making (MCDM) tool, known as TOPSIS, is utilized to compare the performance of each predictive technique according to their performance in various contexts The results show that the performance of the system is improved when the best predictive method has been selected not only on the premises of a purely mathematical approach, but also when the solid mathematical prediction is supplemented by the judgments of experts and edited data.
Keywords: prediction techniques; predictive maintenance; multiple criteria decision making; design of experiment; heating ventilation and air conditioning system.
Shareholder Value in European Banks after the global financial crisis: an empirical analysis
by Sebastiano Mazzù, Matteo Cotugno, Simona Galletta
Abstract: This paper investigates the determinants of shareholder value in European banks over a seven-year period from 2011 to 2017. Using a panel fixed effects regression model, we find that banks that focused more on traditional lending activities and increased their risk-taking level generate greater shareholder value. Shareholder value is a persistent variable over time; bank size has a positive impact on shareholder value, while financial leverage has a negative influence. We also find a negative relationship between gross domestic product per capita (GDPPC) and shareholder value. Further analyses were conducted by clustering the sample into subsamples based on GDPPC, the density of bank branches and bank size. The main results are confirmed with a robustness check using a two-step IV-GMM estimate.
Keywords: Shareholder Value; Banks; Economic Value Added.
The impact of intellectual capital on bank performance during and after the NPLs crisis: evidence from Italian banks
by Giovanni Zampone, Giuseppe Sannino, Giuseppe Nicoló
Abstract: The purpose of this paper is to investigate the impact of intellectual capital (IC) efficiency on the financial performance of Italian banks within and after the NPLs crisis. The VAIC approach is employed to measure IC efficiency. Several fixed-effects regression models have been estimated to examine the relationship between IC, its components and Italian banks financial performance for a seven-year span (2012-2018), including the period within (2012-2015) and after (2016-2018) the NPLs financial crisis. The paper reveals that IC efficiency positively influences Italian banks financial performance irrespective of NPLs crisis. In particular, it seems that the value creation ability of Italian banks is widely attributed to an appropriate combination and management of both human capital and capital employed efficiency. This is the first study that empirically assesses the impact of IC on the financial performance of Italian banks both within and after the NPLs crisis.
Keywords: Banks; Italy; VAICTM; HCE; SCE; CEE; Financial Performance; NPLs; Intangibles; Resource-based view.
Optimal liquidation with jump-diffusion process
by Handong Li, Qixuan Luo, Can Jia
Abstract: Under the assumption of the asset prices obey jump-diffusion process, static optimal liquidation strategies and efficient frontier are provided based on the mean-variance criterion and the minimum loss probability criterion separately. Furthermore, this paper analyzed the impact of price jump component on optimal liquidation strategy. And the results indicate that, under the mean-variance criterion, the price jump component will change the trajectory of the optimal liquidation strategy and the final liquidation cost. While under the minimum loss probability criterion, the price jump component will not affect the optimal liquidation strategy, but will change the value of minimum loss probability.
Keywords: Price process; Jump component; price impact; Optimal liquidation strategy; Efficient frontier.
A New Optimization Approach to Assess Optimal Asset Allocation in European Non-Life Insurance companies
by Bilel Jarraya
Abstract: This study addresses the allocation of optimal assets in non-life insurance companies environment with a new vision. Most previous studies are based on the maximization of the utility function. However, in this paper, we focused on the maximization of technical efficiency (TE). In order to validate our objective, we select a set of European non-life insurance companies (ENIC) over the period 2008-2014. In the first step, we estimate the production function characterized by the directional output distance function (DODF). In the second one, we use two metaheuristics (PSO and GA) to assess the optimal asset allocation (OAA). The empirical results show that the proportion allocated to the alternative investment with high-risk high-return(AIhh) is on average lower than those found in previous studies. However, the percentage allocated to the risk-free assets (RFA) is on average different from zero. This can be explained by the attention given to the competitiveness, survival and long-term profitability respecting the maximization of (TE). So, any insurance company must give more attention to the presence of different stakeholders and resolves the conflicts of interest between them.
Keywords: Asset allocation; Technical efficiency; Metaheuristics; Production function; Insurance companies.
Analytical evaluation of the Barriers to Blockchain Technology Implementation in Supply Chains
by Akram Shaabani, Iman Raeesi Vanani, Laya Olfat
Abstract: Recent studies show that technological developments have been effective in the way businesses operate. Blockchain Technology has emerged later than technologies, such as Internet of Things, automated tools, and industry 4.0. As a digital distribution office, Blockchain Technology ensures transparency, security, and traceability of all processes performed in supply chain, which facilitates supply chain management. This technology is very effective in reducing the cost and time of activities in the supply chain, which has significant advantages for companies. The aim of present study was to investigate barriers to Blockchain Technology implementation in supply chain with regard to technical, organizational, and external dimensions. To investigate the barriers, we used the fuzzy technique for order preference by similarity to ideal solution (TOPSIS) method. The fuzzy TOPSIS technique, which is an MCDM approach, is used in ranking variables.
Keywords: Supply chain; Blockchain Technology; Fuzzy Shannons entropy; Fuzzy TOPSIS.
Multicriteria techniques for consensus in group decision making: a literature review.
by Lucas Daniel Del Rosso Calache, Lucas G. Zanon, Ingrid S.C. De Souza Feitosa, Rafael F. M. Arantes, Luiz C.R. Carpinetti
Abstract: This paper aims at conducting a systematic literature review regarding the application of multicriteria techniques for consensus in group decision making. It is presented a framework that consists in the following steps: formalization of research concepts, aim and question; strings input into the Web of Science, Scopus and Emerald databases; removal of duplicates and results classification by year of publication, country, consensus approach, information representation, applied technique and application theme. The results were stratified in the categories: supplier selection, project selection, equipment selection, location selection, investment selection and risk evaluation. The developed framework can be applied for guiding other reviews. The identification of consensus techniques and information representation is also of importance to provide insights for managers. Another finding is the differentiation between the mapped consensus approaches. Finally, future research opportunities were brought to light.
Keywords: Group decision; Multicriteria techniques; Consensus; Literature review.
An empirical study on Internet-based false news stories: experiences, problem awareness, and responsibilities
by Sven Grüner
Abstract: The Internet has significantly reduced the marginal costs of generating and disseminating information. The human information portfolio includes correct and incorrect information. False news stories constitute a challenge for our democracy. Therefore, scientists are increasingly interested in redesigning the information ecosystem. This paper addresses the problem awareness of university students in the realm of false news stories. With the help of a questionnaire, we seek for interesting correlations to generate hypotheses that can be analysed in further studies with new data (i.e., exploratory study).
Keywords: Study type: exploratory; information economics; false news stories; information ecosystem; social net-work; institutional economics.
An improved genetic algorithm for seru scheduling problem with worker assignment considering lot-splitting
by Zhe Zhang, Ling Shen, Yong Yin
Abstract: Seru, a production organization that consists of some equipment and one or more workers that assemble one or more products. It is known as a useful tool in production practice to cope with the volatile environment with diversified demand, short product life cycles and uncertain product types due to its high flexibility and effectiveness. In this paper, we will consider a seru scheduling problem with worker assignment considering lot-splitting, processing sequence and set-up time. We formulate a mathematical model with the objective of minimizing the makespan and employ an improved genetic algorithm with strong robustness and global optimization to solve this complex decision-making problem which is composed of two NP-hard subproblems. Finally, a numerical example is taken and computed to validate the effectiveness of proposed model and algorithm.
Keywords: seru scheduling; worker assignment; lot-splitting; adaptive genetic operator.
A method for partner selection of product development teams using the synergy requirements of product architecture
by Zhongfeng Hu, Minglun Ren
Abstract: Developers with better synergy is important for the formation of cross-functional product development teams. While extant research focuses on the coordination qualification of candidates, the synergy requirements of product architecture is overlooked. As a solution to this problem, a novel approach reinforced by the product architecture is proposed, where ideal synergic matrix (ISM) is derived from the product architecture to express its synergy requirements, real synergic matrix (RSM) is extracted from the collaborative relationships among different candidates, coordination deficit is proposed to characterise the satisfaction degree of the synergy requirements according to the matching level between ISM and RSM. To solve the model, a hybrid GA-PSO algorithm is developed. The experiment results show that our method can guarantee satisfactory and high quality partner selection for the actual product development scenario.
Keywords: product architecture; partner selection; product development; synergic effect; coordination deficit.
Impact of Social Media Technologies on Consumers Online Buying Tendencies with Moderating Role of Gender
by Mehnaz, Jiahua Jin, Abhinay Bhasin
Abstract: Nowadays, the research on social media is evolving owing to rapid saturation of information communications networks. In such scenario, firms need to rethink how to drive consumers buying tendencies (BT) since the market trend hastily transforming from traditional to online shopping. Such hip furnishes a new paradigm for marketers to seize consumers BT using innovative, top-ranked, and renowned social media technologies, especially social network sites (SNSs). This study prospected the linkage of revolutionary SNSs toward consumers BT from emerging nations like Pakistan. The findings revealed the positive relationships of SNSs, (e.g., Facebook, LinkedIn, Twitter, Youtube, and Pinterest) on consumers BT. In marketing perspective; this is the one of the pioneer studies that provides insights for strategic management to encourage consumers BT using SNSs in todays digital era. This study encourages the researchers to reveal further antecedents of SNSs within Pakistan and across the nations, especially with consideration of emerging nations.
Keywords: social network sites; SNSs; consumers online purchase intention; Islamic Republic of Pakistan; structure equation modelling.
An Analysis of Optimal Order Decision for Substitutable Perishable Products at Different Loss Rates
by Jing Wang
Abstract: Loss rate was here used to characterise products life cycles given that perishable products produced through different processes have different life cycles. In addition, products with different loss rates may also be interchangeable to the end user. In this paper, we first established two realistic models with the goal of maximising the expected profit. We here proved that the optimal size of each order and maximum expected profit exist and are unique in both models. After the numerical analysis, we concluded that the rate of loss of models with or without substitutes has the same impact as each other on the optimal order size and the maximum expected profit, and the trends in the variation in the cost of each order are also the same. Furthermore, the trends in the variations with substitutes are relatively slow. The model with substitutes was found to facilitate management decisions through the substitution coefficient, and the boundary value was consistent with the value of the model without substitutes.
Keywords: perishable product; loss rate; substitutable; supply chain management.
Linking Supply Chain Management and Lean Capability to Firm Performance
by Steve Bin Zhou, John Wang, Fiona Ji
Abstract: The rise of supply chain management and lean in industrial application has led to increased attention in research. While various theoretical frameworks have been proposed for supply chain management and lean separately, little has been done on the interaction of these two areas and their respective impact on firm performance. This paper extends the literature by examining supply chain management practice, lean capability, and firm performance, and also the particular role of supply chain management on lean capability. Through a structural equation model, we are able to show that lean capability has a substantial effect on firm performance and that a higher level of supply chain management practice leads to higher lean capability. This implies that firms should emphasise on the development of their lean capability and seek more engagement in supply chain management.
Keywords: supply chain management; lean; firm performance; structural equation model.
Global stability problem of time-delayed Nicholson's Blowflies model for pseudo almost periodic solutions
by Zeying Wang, Zhanghong Xiang, Chao Yang
Abstract: This brief investigates the existence and stability issue of the pseudo almost periodic solutions of time-delayed Nicholsons Blowflies model (simply expressed as NB model). Firstly, we give an important result about the existence for the pseudo almost periodic solutions of the model via the pseudo almost periodic theories, the generalised Lyapunov methods and numerical algorithms. Secondly, we can ensure the asymptotic stability and global asymptotic stability of the pseudo almost periodic solutions of the considered model. Moreover, we deeply analyse the influence of initial desiring values and practical significance of the model. Finally, the benefits of the proposed control approach and the theoretical results are demonstrated by numerical example.
Keywords: Nicholsons blowflies model; existence; global asymptotic stability; numerical algorithm.
Multi-depot Vehicle Routing Problem with Cooperative Transportation in Terminal Distribution
by Jingjing Hu, Youfang Huang, Zhi-hua Hu
Abstract: We design a method of cooperative transportation. In this method, the original scattered transportation resources from express distribution point to terminal distribution center are integrated through cooperative transportation. This is a multi-depot vehicle routing problem. Firstly, we transform it into a vehicle routing problem with single-depot, and the branch and bound (B&B) algorithm is improved to solve it. Next, we design greedy algorithm to solve the vehicle routing problem with multi-depot, and get the approximate optimal solution. The B&B algorithm can get accurate results while the computing time of greedy algorithm is shorter. Directly solving the problem can retain the characteristics of the original problem, and the solution can reflect the actual situation better. The transformation reduces the complexity of the problem, but some feasible solutions may be lost. The experimental results show that the efficiency of transportation resource utilisation is improved after optimisation, which is helpful to make more economic transportation decisions.
Keywords: cooperative transportation; multi-depot routing problem; branch and bound algorithm; greedy algorithm.
Sustainable Performance Evaluation: A Practical Approach based on Fuzzy Best-Worst Method and Fuzzy Inference System
by Abdolreza Azadmanesh, Mohammad Reza Maleki
Abstract: Taking into account sustainability perspective, this paper proposes a practical integrated approach based on fuzzy best-worst method (BWM) and fuzzy inference system (FIS) for performance evaluation. In the proposed approach, the criteria are determined based on three aspects, namely economic, social, and environmental ones; and the corresponding weights are calculated using fuzzy BWM. Moreover, the performance of the company under study is evaluated for each of the sustainability aspects. Finally, an FIS is developed based on the knowledge of experts and the final score of the intended company is accordingly calculated. A real-world example using the knowledge of eight experts of Parsian Gas Refinery Company in Iran indicates the efficiency and effectiveness of the proposed approach.
Keywords: sustainable performance evaluation; best-worst method; fuzzy inference system; FIS; fuzzy theory; sustainability.
Supply Chain Value Co-creation and Flexibility Management Decisions Taking Supply Risk into Account
by Min Yang
Abstract: Value co-creation provides an effective way to prevent and control risks in supply chain enterprises. By building a three-stage supply chain game decision model under risk conditions, rational derivation is made on the dynamic relationship between supply chain flexibility management costs, flexible benefits, unit product costs, and supply chain value creation to investigate conditions required to achieve supply chain value co-creation and optimal flexibility management. Some useful conclusions were finding that the functional relationship between flexibility management cost and supply chain value co-creation is represented as the envelope curve of optimal supply chain value creation and supply chain risks, flexible benefit, and unit product cost exert a significant impact on supply chain flexibility management effect. This article proposes that under certain supply chain risks, companies should maximise the marginal benefits of supply chain flexibility management inputs, so that supply chain flexibility management inputs show positive benefits rather than cost effects.
Keywords: supply chain risk; supply chain flexibility; value creation.
Ranking Risk Attitudes Using an Integrated AHP-TOPSIS Approach
by Lubna Obaid, Haneen Abu Zaid, Doraid Dalalah, Salhah Alhassani, Fouzeya Albastaki, Tania El Khalil
Abstract: Due to the ambiguity between risk attitudes, this study aims at ranking the different risk attitudes considering the factors that affect the behaviour of the decision-makers. Both the technique for order preference by similarity to ideal solution (TOPSIS) and analytical hierarchy process (AHP) are employed to address the characteristics of risk attitudes aiming to highlight the criteria significance and finally to rank the most impactful risk attitude. It was found that regret aversion and risk aversion attitudes have higher impact in real life decision-making problems. In contrast, the maximin and maximax risk attitudes have the lowest importance. Risk seeking and regret aversion attitudes demonstrated the highest importance using TOPSIS of equal-weights while the importance of loss aversion and regret aversion have the highest for the AHP-TOPSIS approach. The results of this study can be beneficial for decision-makers who encounter a variety of risk attitudes in their decision problems.
Keywords: TOPSIS; regret aversion; analytical hierarchy process; AHP; risk attitudes; multi-criteria decision-making; MCDM.
A comparison between intuitionistic and hesitant fuzzy applied to supplier selection group decision-making problems
by Lucas Daniel Del Rosso Calache, Nadya Regina Galo, Luiz Cesar Ribeiro Carpinetti
Abstract: Supplier selection and evaluation is approached in the literature as a multi-criteria decision problem in which usually more than one decision-maker has to judge the importance of criteria and the performance of suppliers. Fuzzy techniques are commonly applied to deal with the uncertainty in the evaluation process. Intuitionistic and hesitant fuzzy representations have been applied to group decision problems. However, none of the studies in the literature presents a comparison of these two fuzzy representations when applied to multi-criteria group decision-making (MCGDM) problems. Thus, this paper presents the results of a comparative study of the intuitionist fuzzy and the hesitant fuzzy representations applied to supplier selection problem. The techniques were implemented and tested in a pilot application to a textile manufacturing company. The comparison was based on congruency of results, adequacy to group decision, data collection effort and flexibility of judgement, computational complexity and modelling of uncertainty.
Keywords: intuitionistic fuzzy; hesitant fuzzy; group decision; supplier selection.
The orbital systems theory
by Shervin Zakeri, Naoufel Cheikhrouhou
Abstract: In this paper, a new theory is introduced called orbital systems theory to handle the uncertainty of the natural phenomena, the complicated real-world problems, and the human's decision-making process which naturally creates the inconstancy and uncertainty in each process it involves. The philosophy of the new theory is established based on this hypothesis that every component of the universe is a box that carries the information and each one is constructed by the particular information concepts that move along specific orbits. The orbital system is an integral part of the new theory. As a restricted numeric system, its core is the concept of reality. An orbital system is developed based on five numerical spectra surrounded by four parallel dimensions of reality and certain reality. With considering 'time' as an element, each dimension adds entropy to the system, and increases/decreases the level of uncertainty.
Keywords: orbital systems theory; orbital numbers; uncertainty; reality; information; theory.
A study of the microevolution mechanism of internet finance in China from the perspective of the labour division
by Xiongying Wang, Guocheng Xiang, Yadong Zhang, Zhi Yang
Abstract: This paper aims to study the micro-evolution mechanism of internet finance from the perspective of the labour division. By using the theory of circuitous production, we construct an evolution model of labour division in internet finance industry, which has a dilemma between specialised economy and transaction efficiency of two sectors. By introducing transaction efficiency and the cost of learning internet finance, we internalise the level of specialisation and relative price, to expound the mechanism of inclusive rural finance in internet finance development. Based on the data of 31 provinces in China from 2011 to 2016, this paper reveals internet finance's positive impact on rural inclusive finance by improving transaction efficiency. In terms of the field, the positive impact of internet finance on rural inclusive finance is U-shaped. Finally, we have come to the conclusion that internet finance is the most important factor to push the rural inclusive finance forward in China.
Keywords: internet finance; rural inclusive finance; inclusive finance.
A bi-objective green multi-period inventory-routing problem with multi-speed vehicles
by Hossein Jandaghi, Abdul Sattar Safaei, Ali Divsalar
Abstract: Vendor-managed inventory becomes an essential trend in logistics. Inventory routing problem (IRP) is one of the most critical problems in this context. In practice, any distribution plan in an IRP may cause CO2 emission produced by the vehicles. In this research, an optimisation model is developed to handle both the conventional inventory routing problem and its environmental impacts. The problem is modelled as a bi-objective variant of the IRP. The two objective functions considered in this research are minimising the total inventory cost, as well as minimising fuel consumption and CO2 emissions. The fuel consumption is determined based on vehicle load, travelled distance, vehicle speed and vehicle technical characteristics. A bi-objective mixed-integer linear model is developed and the ε-constraint approach is utilised to solve its randomly generated instances. Furthermore, numerical tests for instances of the problem are performed using the Cplex optimisation software to quantify benefits of using comprehensive goal function with two different objectives. In general, it is shown that the company should stock more inventories, respecting to the green aspect. Moreover, a comprehensive sensitivity analysis performed to show the impact of each parameter of the problem on both model complexity and managerial insights.
Keywords: inventory-routing problem; bi-objective; green supply chain; fuel consumption; CO2 emission; ε-constraint.
Investigating the effects of information technology investment on the performance of telecommunication companies
by Ahmad Sobhani, Sina Shokoohyar, Anae Sobhani
Abstract: Information technology (IT) has a significant potential in improving the structure of organisations and the quality of companies' performance. However, the inconsistent relationships between IT investment and the performance of an organisation is the main issue which can result in failing of a successful implementation of IT. In this paper, an econometric model is developed to evaluate the possible effects of IT investment on the productivity of a telecommunication company. The results show a positive contribution of IT capital and labour investments on the company's productivity and financial performance indexes. Findings also approve that the current IT investment has a positive impact on the company's revenue generation even after deducting depreciation expenses. This effect is less than non-IT investments. According to statistical analysis, while there is a strong relation between total factor productivity of the company and its IT capital the relation between labour productivity and the IT capital is moderate.
Keywords: information technology; financial performance; econometric techniques; Douglas production model.