Operations Management Perspective Research Articles

An Innovative Double-Frontier Approach to Measure Sustainability Efficiency Based on an Energy Use and Operations Management Perspective

China’s economic development has achieved great success in recent years, but the problems of energy scarcity and environmental pollution have become increasingly serious. To enhance the reliability and efficiency between energy, the environment and the economy, sustainable development is an inevitable choice. In the context of measuring sustainability efficiency, a network data envelopment analysis model is proposed to formulate the two-stage process of energy use and operations management. A double frontier is derived to optimize the available energy for sustainable development. Due to nonlinearity, previous linear methods are not directly applicable to identify the double frontier and calculate stage efficiencies for inefficient decision-making units. To address this problem, this study develops the primal-dual relationship between multiplicative and envelopment network models based on the Lagrange duality principle of parametric linear programming. The newly developed approach is used to evaluate the sustainability efficiency of 30 administrative regions in China. The results show that insufficient sustainability efficiency is a systemic problem. Different regions should take different measures to conserve energy and reduce pollutant emissions for sustainable development. To increase sustainability efficiency, regions should support energy-saving and emission-reducing technologies in production processes and strengthen their capacity for technological innovation. Compared with energy use efficiency, operations management efficiency in China has a wider range of changes. During the operations management stage, there is not much difference between the capacity and quantity of each region. Based on benchmark regions at the efficiency frontier, there is an opportunity to improve operations management in the near future. Blockchain technology can effectively improve energy allocation efficiency.

Decoding cargo bikes’ potential to be a sustainable last-mile delivery mode: an operations management perspective

ABSTRACT Cargo bikes are considered as a low-cost and flexible last-mile solution for the transport of goods. However, there are few studies that identify and contextualise the factors underpinning their sustainable operations and potential to effectively work as the last leg of a green, efficient, and societally beneficial supply chain. The authors addressed this gap by systematically collecting and thematically analysing 49 articles published between 2017 and 2023. The findings demonstrate that cargo bikes can utilise their potential as a sustainable last-mile delivery mode if: (a) their operations are optimised (from parking to routing and from traffic management to load capacity planning); (b) their social sustainability performance is enhanced (e.g. safety, security, fatigue of workforce); and (c) the cities hosting them invest in bike-friendly infrastructure, regulatory frameworks, land use approaches and mobility hubs. This paper offers cargo bike insights that can assist relevant stakeholders to enhance their efficiency and overall adoption.

Implementing multi-attribute utility theory in service recovery: An operational management perspective on online retailing

How corporate decision-makers allocate resources to address the major issues of service recovery is critical. This article, from the perspective of operations management, integrates Multi-Attribute Utility theory into the field of service recovery. Through the use of online review data from smart home products, the PCRA-Multi-Attribute Utility model is proposed. Based on the model, this paper presents a prioritization strategy for service recovery and reveals that the utility of intelligent products is primarily influenced by service attitude. Furthermore, we discovered that manager's response strategies should pay more attention to recovery related to vital attributes. Strategy optimization can be achieved by adjusting the response length of these key attributes.

The effect of strategic alliances on supply chain resilience under external shocks

ABSTRACT Enterprises opt for alliances to bolster supply chain resilience (SCR) against external shocks. Yet, studies on the impact of strategic alliances on SCR from an operations management perspective are still lacking. This study develops a supply chain network (SCN) cascading failure model that accommodates the presence of strategic alliances, drawing upon complex network theory and cascading failure theory. Using numerical simulations and empirical examples, the study delves into how enterprises can effectively enhance their SCR by forming strategic alliances and appropriately allocating redundant resources. The findings reveal that: (I) Strategic alliances enhance SCR; (II) When enterprises maintain a degree of redundancy, the strengthening effect of alliances on SCR is even more pronounced, particularly under significant external shocks; and (III) In the context of cascading failures, disruptions to smaller enterprises have a more pronounced effect on SCR. Notably, weak-weak alliances contribute more to SCR than strong-strong alliances.

MSMEs Awareness in Halal Certification from an Operations Management Perspective

Providing halal certification is considered as one of the tools that can strengthen the position of Indonesian MSMEs. This is due to the ability of MSME products that have halal status to become a competitive advantage for Indonesia on the international stage. This study will analyze the factors that can increase the awareness of MSMEs in Indonesia regarding the importance of obtaining halal certification. This research uses descriptive methods through survey techniques. The survey technique used is a questionnaire technique that must be filled in by the subject and also conducts opinion polls, as well as in-depth interviews with a sample of respondents selected based on the requirements for the length of time MSMEs have been established, the type of MSME business, and ownership of current halal certification. MSMEs have realized the importance of halal certification even though many of them have not processed it due to a lack of education. However, even though they are not yet halal certified, from an operations management perspective, the production process that is carried out is halal by ensuring that both the materials used and the processes carried out are in accordance with Islamic law.

Global agricultural supply chains under tariff‐rate quotas

The tariff rate quota (TRQ) is a widely utilized market access instrument in global agricultural trade that allows a predetermined quantity of a product to be imported at a lower tariff rate than the usual rate. This study examines the design and administration of TRQ systems from an operations management perspective and analyzes their impact on market access, fill rates, and revenue for policymakers. We investigate the two most common TRQ administration methods, namely, licensing and first‐come, first‐served (FCFS) systems. We characterize the Nash equilibria (NE) of importers' strategies and observe how information delays and lead times can result in under‐utilization (i.e., imports being less than the quota limit) in licensing and over‐utilization (i.e., imports exceeding the quota limit) in FCFS TRQ systems. We introduce a dual TRQ system and demonstrate its superiority over licensing and FCFS systems. We study the effects of stock‐keeping options through customs‐bonded warehouses and the choice of logistics channels on arrival patterns and fill rates. We conduct a case study of the United Kingdom and the European Union imported beef market using customs data. Our numerical study provides an explanation for the suboptimality of the current TRQ systems and proposes modifications to transform the existing systems. Our findings offer practical directions for agricultural traders to reassess their supply chain strategies by considering the logistical implications of TRQ systems and understanding their competition. This study also urges policymakers to adopt an integrative approach in (re)designing TRQ systems, recognizing the pivotal role of supply chains in global agricultural trade.

The dark side of artificial intelligence in higher education

ABSTRACT The paper focuses on the negative aspects of artificial intelligence in higher education such as biases in the datasets and algorithms, plagiarism, factual incorrectness, micromanagement of students and employees, manipulation of behaviour, überveillance, overreliance on AI, lack of or low explainability and transparency of AI’s decisions, loss of skills, and privacy concerns. The paper adopts an operations management perspective and discusses the negative aspects of AI in the various processes in higher education institutions such as enrolment of students, hiring of employees, teaching/learning/assessment, administrative activities, research, socialisation and well-being of students, remuneration, appraisal and wellbeing of employees. Special attention is paid to AI’s impacts on ethics, creativity and critical thinking. Potential solutions to avoid or mitigate the negative impacts of AI, theoretical, managerial and policy implications are discussed as well.

The effect of information on the strategic behavior in a Markovian queue with catastrophes and working vacations

ABSTRACT A stochastic clearing system is studied from a game-theoretic perspective in the paper where the server is subject to a Poisson-generated catastrophe and a follow-up repair process. Whenever a fatal shock (catastrophe) occurs, all customers are cleared from the system and the server fails. A repair is rendered immediately to fix the server with an exponential repair time. During the repair process, no customers are allowed to enter the system. Customers are strategic and they have the right to decide whether to join the system or balk based on a linear reward-cost structure with two types of rewards: A service reward for those customers that receive service and a compensation for those customers that are forced to abandon the system due to a catastrophe. During the service process, the server takes a working vacation after serving all the customers in the system. Our study is the first attempt to provide models to jointly characterize and analyse the queueing system with working vacation and catastrophes, with an emphasis on game-theoretic modeling of such a service system. The customer’s equilibrium strategy and social benefit of the system under four different information scenarios are obtained. In particular, we find that customers obey the follow-the-crowd (FTC) property in almost observable condition, which provides managerial insight on the operations management perspective. Numerical experiments are presented to show the effects of system parameters and information levels on the equilibrium joining behavior of customers.

Taxes and New Product Development: An Operational Management Perspective

Taxes and New Product Development: An Operational Management Perspective

Opportunities in farming research from an operations management perspective

We review and analyze the farming (upstream agribusiness supply chain) research literature since 1965 to identify farming research opportunities for operations management (OM) researchers. A majority of reviewed papers in our corpus, until the turn of the 21st century, primarily focus on improving operational efficiency and effectiveness of farming using optimization techniques. However, during the last two decades, farmers’ welfare and the interests of other stakeholders have drawn OM researchers’ attention. This expanded focus on farming research has become possible due to the proliferation of mobile communication devices and the Internet as well as advancements in information technology platforms and social media. Our review also shows that there is a paucity of OM literature that leverages increased data availability from the emergence of precision agriculture and blockchain to address major challenges for the farming sector emanating from climate change, natural disasters, food security, and sustainable and equitable agriculture, among others. Big data, in conjunction with opportunities for field‐based experimentation, artificial intelligence and machine learning, and integration of predictive and prescriptive analytics, can be leveraged by OM scholars engaged in farming research. We zero in on specific questions, issues, and opportunities for research in farming.

Cloud Computing Value Chains: Research from the Operations Management Perspective

Problem definition: Cloud computing is recognized as a critical driver of information technology–enabled innovations. The operations management (OM) community, however, has not been exposed enough to the essential operations problems that arise from the management of cloud value chains. Academic/practical relevance: In this paper, we examine recent research on cloud value chains and explore future research opportunities from an OM perspective. In particular, we focus on major operations management challenges facing a cloud provider in three problem domains: (1) cloud computing resource management, (2) pricing in the cloud computing marketplaces, and (3) capacity planning and management of cloud supply chains. Methodology: We describe prevalent business models and management practices in the cloud value chains, discuss recent research from OM that falls into each of the three problem domains mentioned, and point out opportunities for future research. Results: We note that cloud computing operations are driven by demand that exhibits distinct characteristics, including complex workflow, demand redundancy, multifeatured characteristics, multidimensional resource requirement, and nonstationarity. On the supply side, cloud computing operations also exhibit distinct characteristics, including heterogeneous resources, packing constraints, preconfigured (“bundled”) supply, technology risks, and cost uncertainty. These characteristics of demand and supply are not all prevalent in other operations. Managerial implications: Cloud computing operations not only share many features with classic OM problems, but also bring new challenges and innovative business models. Thus, OM tools and research have the potential to provide vital insights into cloud computing operations and impact management practices in the cloud industry, which, in turn, can stimulate much innovative research from the OM perspective. Supplemental Material: The online appendix is available at https://doi.org/10.1287/msom.2022.1178 .

Field experiments in operations management

AbstractWhile the field experiment is a powerful and well‐established method to investigate causal relationships, operations management (OM) has embraced this methodology only in recent years. This paper provides a comprehensive review of the existing OM literature leveraging field experiments. It also serves as a one‐stop guide for future application of field experiments in the OM area. We start by recapping the characteristics that distinguish field experiments from other common types of experiments and organizing the relevant OM studies by topic. Corresponding to the commonly overlooked issues in field experiment‐based OM studies, we then provide a detailed roadmap, ranging from experimental design and implementation to post‐experiment analysis. We further outline the methodological and practical issues as well as corresponding solutions when applying field experiments. We conclude by identifying future research directions from an OM perspective.

Consecutive surgeries with complications: the impact of scheduling decisions

PurposeThe authors determine how the scheduling and sequencing of surgeries by surgeons impacts the rate of post-surgical complications and patient length-of-stay in the hospital.Design/methodology/approachLeveraging a dataset of 29,169 surgeries performed by 111 surgeons from a large hospital network in Ontario, Canada, the authors perform a matched case-control regression analysis. The empirical findings are contextualized by interviews with surgeons from the authors’ dataset.FindingsSurgical complications and longer hospital stays are more likely to occur in technically complex surgeries that follow a similarly complex surgery. The increased complication risk and length-of-hospital-stay is not mitigated by scheduling greater slack time between surgeries nor is it isolated to a few problematic surgery types, surgeons, surgical team configurations or temporal factors such as the timing of surgery within an operating day.Research limitations/implicationsThere are four major limitations: (1) the inability to access data that reveals the cognition behind the behavior of the task performer and then directly links this behavior to quality outcomes; (2) the authors’ definition of task complexity may be too simplistic; (3) the authors’ analysis is predicated on the fact that surgeons in the study are independent contractors with hospital privileges and are responsible for scheduling the patients they operate on rather than outsourcing this responsibility to a scheduler (i.e. either a software system or an administrative professional); (4) although the empirical strategy attempts to control for confounding factors and selection bias in the estimate of the treatment effects, the authors cannot rule out that an unobserved confounder may be driving the results.Practical implicationsThe study demonstrates that the scheduling and sequencing of patients can affect service quality outcomes (i.e. post-surgical complications) and investigates the effect that two operational levers have on performance. In particular, the authors find that introducing additional slack time between surgeries does not reduce the odds of back-to-back complications. This result runs counter to the traditional operations management perspective, which suggests scheduling more slack time between tasks may prevent or mitigate issues as they arise. However, the authors do find evidence suggesting that the risk of back-to-back complications may be reduced when surgical pairings are less complex and when the method involved in performing consecutive surgeries varies. Thus, interspersing procedures of different complexity levels may help to prevent poor quality outcomes.Originality/valueThe authors empirically connect choices made in scheduling work that varies in task complexity and to patient-centric health outcomes. The results have implications for achieving high-quality outcomes in settings where professionals deliver a variety of technically complex services.

A systematic literature review of food banks’ supply chain operations with a focus on optimization models

PurposeFood banks play an increasingly important role in society by mitigating hunger and helping needy people; however, research aimed at improving food bank operations is limited.Design/methodology/approachThis systematic review used Web of Science and Scopus as search engines, which are extensive databases in Operations Research and Management Science. Ninety-five articles regarding food bank operations were deeply analyzed to contribute to this literature review.FindingsThrough a systematic literature review, this paper identifies the challenges faced by food banks from an operations management perspective and positions the scientific contributions proposed to address these challenges.Originality/valueThis study makes three main contributions to the current literature. First, this study provides new researchers with an overview of the key features of food bank operations. Second, this study identifies and classifies the proposed optimization models to support food bank managers with decision-making. Finally, this study discusses the challenges of food bank operations and proposes promising future research avenues.

Autonomous robot-driven deliveries: A review of recent developments and future directions

The adoption of autonomous delivery robots (ADRs) across various delivery applications has rapidly accelerated in recent years. This growth can be attributed to advancements in technology and legislation, exacerbated conventional delivery challenges, and pandemic-mediated need for contactless deliveries. A growing number of studies have investigated the various aspects pertaining to ADR-based delivery operations. Nevertheless, there is a lack of extensive literature review that holistically reports on various problems in ADR-based delivery operations, adopted methodologies, novel findings, and future needs. This paper aims to systematically survey the existing research on ADR-based delivery systems and associated operations. Foremost, we discuss various technology, design, and legal factors that impact ADR operations. Subsequently, we are the first to review the state-of-the-art research in ADR-based deliveries concerning the following areas—routing, infrastructure and fleet planning, factors affecting efficiency, technology acceptance, and social intelligence. Finally, we anticipate potential challenges from an operations management perspective, identify research gaps, and delineate future research opportunities for ADR-based deliveries.

Circular economy in pharmaceutical industry through the lens of stimulus organism response theory

PurposeThe purpose of this study is to explore circular economy (CE) initiatives and apply the stimulus-organism-response theory to find the socio-political drivers and enablers of CE in the pharmaceutical industry. CE as a concept was relatively not studied much with respect to socio-political interests from operations management perspectives. This was especially so in the pharmaceutical industry.Design/methodology/approachThis research study was anchored in the theoretical conversation of stimulus-organism-response theory to find the socio-political interests and enablers of the regenerative CE principles. These were the functions of remanufacturing, reuse and recycle. For this research study, data was collected in two steps. First, eight industry practitioners were interviewed to understand the CE practices in the pharmaceutical industry. Then 166 chiefs of production and operations functions from 124 pharmaceutical companies were surveyed. The quantitative data was empirically analyzed using SmartPLS3 software.FindingsThis research study revealed that pressure from suppliers and other public stakeholders were driving regenerative CE practices in the pharmaceutical industry. The results further stated that CE enablers such as green information technology systems and internal environmental management were critical for making pharmaceutical manufacturing operations circular.Research limitations/implicationsThis research study measured the constructs on a formative scale. Studies measuring socio-political interests, CE enablers and sustainability practices constructs on a formative scale were much required for the development of the CE theory. This research study output could be applied across geographies and industries to measure the indicators of CE.Practical implicationsThis research study indicated that in the context of the pharmaceutical industry, there was an overemphasis on the remanufacture and reuse principles. However, the focus on recycling principles was mostly subdued. For managers and regulators in the pharmaceutical sector, this research study provided clear insights that for more effective CE implementation. This was based on an effective application of recycling practices in the critical functions in pharmaceutical industry.Originality/valueEarlier research studies on green and environmental manufacturing were focused on linear production models. To provide clear and robust foundations for CE theory, this research study considered operations management from the perspective of the value chain. This comprised the entire circular production model. Earlier research studies had treated socio-political interests, CE enablers and sustainability practices as reflective constructs. This study was one of the foremost to measure these constructs on a formative scale.

A New Interior Search Algorithm for Energy-Saving Flexible Job Shop Scheduling with Overlapping Operations and Transportation Times

Energy-saving scheduling has been pointed out as an interesting research issue in the manufacturing field, by which energy consumption can be effectively reduced through production scheduling from the operational management perspective. In recent years, energy-saving scheduling problems in flexible job shops (ESFJSPs) have attracted considerable attention from scholars. However, the majority of existing work on ESFJSPs assumed that the processing of any two consecutive operations in a job cannot be overlapped. In order to be close to real production, the processing overlapping of consecutive operations is allowed in this paper, while the job transportation tasks are also involved between different machines. To formulate the problem, a mathematical model is set up to minimize total energy consumption. Due to the NP-hard nature, a new interior search algorithm (NISA) is elaborately proposed following the feature of the problem. A number of experiments are conducted to verify the effectiveness of the NISA algorithm. The experimental results demonstrate that the NISA provides promising results for the considered problem. In addition, the computational results indicate that the increasing transportation time and sub-lot number will increase the transportation energy consumption, which is largely responsible for the increase in total energy consumption.

The impact of corporate support programs on environmental and social innovation: empirical insights from the food and beverage industry

PurposeThe purpose of this paper is to analyze the influence of corporate support programs on managers' environmental and social innovation behaviors. To offer a more comprehensive understanding of these relationships, the moderating role of technological reflectiveness and business moral values is also accounted for.Design/methodology/approachA scenario-based experimental study to test the impact of corporate support programs on environmental and social innovation behaviors is also adopted. After running a pretest to verify the effectiveness of alternative scenarios through 100 respondents with managerial experience residing in the UK and EU countries, we collected data from a sample of 220 senior managers of firms from the Australian food and beverage industry for the main study. One-way analysis of variance (ANOVA) with Dunnett's test to investigate direct relationships and the PROCESS Model to test the moderating role of technological reflectiveness and business moral values were used.FindingsThe findings reveal time provision, budget provision and advice provision as salient forms of corporate support programs that positively impact managers' environmental and social innovation behaviors. It is found that technological reflectiveness positively moderates the link between time provision and managers' social innovation behavior and negatively moderates the link between advice provision and managers' social innovation behavior. Furthermore, it is found that business moral values positively moderate the relationships between time and budget provisions and managers' environmental innovation behavior and between budget and advice provisions and managers' social innovation behavior.Originality/valueThe authors contribute to innovation and operations management research by adopting a behavioral operations management perspective and empirically analyzing the influences of managers' technological reflectiveness and business moral values on the relationship between organizational corporate support programs and managers' environmental and social innovation behavior in the context of the food and beverage industry.

Reducing food loss and waste in supply chain operations

This paper presents a review of research on food loss and waste (FLW) from the perspective of operations management (OM). Supply chain FLW represents a significant challenge for researchers and practitioners grappling with issues of famine and inequitable access to food supplies. Our broad literature pool includes 346 articles published in prestigious OM, management, and prominent economics, environment, and food science journals. The contribution of this review is threefold. First, we provide insights into FLW studies from the lens of specific stages within the food supply chain and from the perspective of the entire food supply chain. Second, we identify overarching research themes in the FLW literature. Third, we draw insights from our literature sample, presentations in the leading OM conferences, working papers, and 30 semi-structured interviews of food supply chain stakeholders to provide a projection of future research opportunities. Such a review approach ensures our analysis being relevant to practice.

Industry 4.0: A Bibliometric Analysis in the Perspective of Operations Management

Industry 4.0: A Bibliometric Analysis in the Perspective of Operations Management