Operational Research in Business and Economics : 4th International Symposium and 26th National Conference on Operational Research, Chania, Greece, June 2015

This book gathers a selection of refereed papers presented at the 4th International Symposium and 26th National Conference of the Hellenic Operational Research Society. It highlights recent scientific advances in operational research and management science (OR/MS), with a focus on linking OR/MS with other areas of quantitative methods in a multidisciplinary framework. Topics covered include areas such as business process modeling, supply chain management, organization performance and strategy planning, revenue management, financial applications, production planning, metaheuristics, logistics, inventory systems, and energy systems. Preface 6 Contents 10 List of Contributors 12 The Application of a Business Process Modeling Architecture in the Supply Chain of a Manufacturing Company: A Case Study 15 1 Introduction 16 2 The Adopted Integrated Architecture 19 3 Case Study: Application of the Integrated Architecture in a Manufacturing Company 22 3.1 Case Study Company Description 22 3.2 Case Study Research Approach 22 3.3 General Description of the Study 24 3.4 Application of the Business Process Modeling Architecture 25 3.5 Results of Architecture ́s Application 27 4 Conclusions 28 References 29 How Environmental Knowledge of Managers Plays a Critical Role in Implementing Green Supply Chain Management 31 1 Introduction 31 2 Theoretical Underpinning: Hypotheses Development 32 3 Methodology 35 3.1 Research Framework 36 3.2 Sample Selection 36 3.3 Questionnaire Structure 37 3.4 Variable Description: Statistical Test 38 4 Results and Discussion 38 4.1 How Environmental Awareness of Managers/Owners of SMEs Affect Their Propensity to Invest in Green Supply Chain Management ... 38 4.2 How the Knowledge About Benefits of Green Supply Chain Management Practices Are Positively Related to Green Supply Chain M... 40 4.3 How the Knowledge of Managers/Owners About the Barriers of Implementing Green Supply Chain Management Practices Make Them ... 43 5 Conclusions 44 References 45 Retail Category Management: A Review on Assortment and Shelf-Space Planning Models 48 1 Introduction 48 2 Definitions and Scope of Retail Category Management 50 3 Related Literature and Empirical Studies 52 3.1 Customer Driven Substitution 52 3.2 Consumer Perceptions of Assortment Variety 54 3.3 The Sales: Space Relationship 55 4 Consumer Choice Modeling and Demand Estimation 56 4.1 Utility Based Models 57 4.1.1 Multinomial Logit Model 57 4.1.2 Locational Demand Model 58 4.2 Exogenous Demand Model 59 4.3 Space Elastic Demand Models 59 4.3.1 Own-Space Elastic Demand Models 60 4.3.2 Own- and Cross-Space Elastic Demand Models 60 4.4 Demand Estimation 60 4.4.1 Demand Estimation with MNL Model 61 4.4.2 Demand Estimation with Exogenous Demand Model 62 5 Scientific Models for Retail Category Planning 63 5.1 Scientific Models for Assortment Planning 64 5.1.1 Assortment Planning with MNL 64 5.1.2 Assortment Planning with Exogenous Demand Models 67 5.1.3 Assortment Planning Under Locational Choice Demand Models 68 5.1.4 Assortment Planning in Decentralized Supply Chains 69 5.1.5 Dynamic Assortment Planning with Demand Learning 69 5.2 Scientific Models for Shelf Space Planning 70 5.2.1 Shelf Space Allocation Models with Own Space-Elastic Demand 70 5.2.2 Shelf Space Allocation Models with Own Space- and Cross-Space Elastic Demand 73 5.2.3 Integrated Shelf Space Allocation and Inventory Planning Models 74 6 Conclusions 75 References 76 Cultural and Creative Industries Innovation Strategies for New Service Development Using MCDA 81 1 Introduction 82 2 Literature Review 83 3 Methodology 85 3.1 Data and Variables 85 3.2 Multicriteria Methodology 86 4 Results 87 5 Conclusions 94 References 95 Fostering a Competitive Differentiation Strategy for Sustainable Organizational Performance 97 1 Introduction 97 2 Literature Review 99 2.1 Identifying and Choosing the Relevant Publications 100 2.2 Results of Research 102 2.3 Theoretical Background 102 2.3.1 Market Orientation 102 2.3.2 Innovation Management 106 2.3.3 Organizational Performance 109 2.3.4 Competitive Differentiation Strategy 111 3 Measurement, Scales and Questionnaire 115 4 Discussion, Managerial and Academic Implications 115 5 Conclusion 118 References 119 Decision Aiding Process in the Frame of the Strategic Farm Management 125 1 Introduction 126 2 Decision Aiding Process 127 3 Tools and Techniques for Strategic Analysis 130 3.1 Commonly Used Tools and Techniques 130 3.2 STRAT Proposed Methodologies and Tools 131 3.2.1 The PerfEA Methodology 131 3.2.2 The Risk Wheel Tool 141 3.3 Some Quality Aspects 147 4 Transfer of Innovation: Pilot Implementation 147 5 Conclusions 154 Appendix 154 References 155 Exploring Population Drift on Consumer Credit Behavioral Scoring 157 1 Introduction 157 2 Credit Scoring Framework 160 2.1 Credit Scoring Formalization 160 2.2 Behavioral Scoring 161 3 Population Drift and Evidence from Current Situation 163 3.1 Evidence from Greek Market 164 4 Data and Models 166 4.1 Behavioral Scoring Parameters 166 4.2 Modeling Methodology 167 4.3 Variables 168 5 Results and Discussion 169 5.1 Discussion 170 6 Conclusions 171 Appendix 1: Scoring Parameters 171 Appendix 2: Variables 172 References 174 Solving Portfolio Optimization Problems Using AMPL 178 1 Introduction 178 2 Literature Review and Existing Portfolio Optimization Software Packages 179 3 Financial Optimization Mathematical Models 184 3.1 AMPL Implementation Details 185 3.2 Konno-Yamazaki Mean Absolute Deviation Model 186 3.2.1 Results Interpretation 189 3.3 Young ́s Minimax Model 189 3.3.1 Results Interpretation 191 4 Conclusions and Future Work 193 References 194 Approximating Throughput of Small Production Lines Using Genetic Programming 196 1 Introduction 196 2 Data and Methodology 198 2.1 Generation of Training Data 198 2.2 Genetic Programming Implementation 199 3 Numerical Results 203 4 Conclusions and Further Research 206 Appendix 1: Exact Formula for Three-Station Line Without Buffers 209 Appendix 2: The DECO-2 Algorithm 210 References 214 An Island Memetic Algorithm for Real World Vehicle Routing Problems 216 1 Introduction 216 2 The Vehicle Routing Problem 218 3 Island Memetic Algorithm Using GRASP and ILS 220 3.1 General Description of Island Memetic Algorithm with the Use of GRASP and ILS (IMGL) 220 3.2 Crossover: Mutation Operators 222 3.3 GRASP Algorithm 223 3.4 Local Search 224 3.5 Path Relinking 224 3.6 Iterated Local Search 225 3.7 Deletion of Similar Solutions 226 4 Computational Results 226 5 The Provision Company 229 6 Conclusion 231 References 231 Three-Dimensional Multiple-Bin-Size Bin Packing: A Case Study with a New MILP-Based Upper Bound 235 1 Introduction 235 2 Case Study: Problem Description 237 3 Upper Bound Deduced From Exact Formulation 238 4 Conclusions 242 References 243 The Effects of Quality on Market Share and Profitability in Single Stage Make-to-Stock Production Systems 245 1 Introduction 245 2 System Description 246 3 Dynamic Programming 248 4 Numerical Experiments 252 5 Conclusions 254 References 254 Two-Warehouse Inventory Systems for Seasonal Deteriorating Products with Permissible Delay in Payments 256 1 Introduction 257 2 Notation and Assumptions 258 2.1 Notation 258 2.2 Assumptions 258 3 Model Formulation for the Two Warehouse Problem 259 3.1 Cost Calculation Excluding Interest Earned and Charged 260 3.2 The Inventory Model for the Case Mmu 261 3.3 The Inventory Model for the Case muMT 262 4 Model Formulation for the Single Warehouse Problem 263 4.1 Cost Calculation Excluding Interest Earned and Charged 263 4.2 The Inventory Model for the Case Mmu 264 4.3 The Inventory Model for the Case muMT 265 5 Optimal Solution for the Two Warehouse Inventory Model 266 5.1 Optimal Solution for the Case Mmu 266 5.2 Optimal Solution for the Case muMT 268 6 Optimal Solution for the Single Warehouse Inventory Model 270 6.1 Optimal Solution for the Case Mmu 270 6.2 Optimal Solution for the Case muMT 271 7 Solution Procedure 272 8 Numerical Examples 272 8.1 Example 1 (Mmu) 273 8.2 Example 2 (muMT) 273 9 Sensitivity Analysis 273 10 Concluding Remarks 274 Appendix 1 275 Appendix 2 277 References 278 Optimal Active Power Management in All Electric Ship Employing DC Grid Technology 279 1 Introduction 280 2 AES Power System 281 2.1 Operation Constraints in AES Power System Operation 282 2.2 Economic and Environmentally Friendly AES Operation 283 2.3 Propulsion Load Adjustment 284 3 Optimal Active Power Management Problem 285 3.1 Formulation 285 3.2 Solution Method 286 4 Case Study 287 5 Conclusions 291 References 291 Front Matter....Pages i-xiii The Application of a Business Process Modeling Architecture in the Supply Chain of a Manufacturing Company: A Case Study....Pages 1-16 How Environmental Knowledge of Managers Plays a Critical Role in Implementing Green Supply Chain Management....Pages 17-33 Retail Category Management: A Review on Assortment and Shelf-Space Planning Models....Pages 35-67 Cultural and Creative Industries Innovation Strategies for New Service Development Using MCDA....Pages 69-84 Fostering a Competitive Differentiation Strategy for Sustainable Organizational Performance....Pages 85-112 Decision Aiding Process in the Frame of the Strategic Farm Management....Pages 113-144 Exploring Population Drift on Consumer Credit Behavioral Scoring....Pages 145-165 Solving Portfolio Optimization Problems Using AMPL....Pages 167-184 Approximating Throughput of Small Production Lines Using Genetic Programming....Pages 185-204 An Island Memetic Algorithm for Real World Vehicle Routing Problems....Pages 205-223 Three-Dimensional Multiple-Bin-Size Bin Packing: A Case Study with a New MILP-Based Upper Bound....Pages 225-234 The Effects of Quality on Market Share and Profitability in Single Stage Make-to-Stock Production Systems....Pages 235-245 Two-Warehouse Inventory Systems for Seasonal Deteriorating Products with Permissible Delay in Payments....Pages 247-269 Optimal Active Power Management in All Electric Ship Employing DC Grid Technology....Pages 271-284