- Research Article
- 10.1287/opre.1110.0925
Contributors
- Feb 01, 2011
- Operations Research
- Sandro Bosio
Contributors
We propose a computationally efficient fully polynomial-time approximation scheme (FPTAS) to compute an approximation with arbitrary precision of the value function of convex stochastic dynamic programs, using the technique of $K$-approximation sets and functions introduced by Halman et al. [Math. Oper. Res., 34, (2009), pp. 674--685]. This paper deals with the convex case only, and it has the following contributions. First, we improve on the worst-case running time given by Halman et al. Second, we design and implement an FPTAS with excellent computational performance and show that it is faster than an exact algorithm even for small problem instances and small approximation factors, becoming orders of magnitude faster as the problem size increases. Third, we show that with careful algorithm design, the errors introduced by floating point computations can be bounded, so that we can provide a guarantee on the approximation factor over an exact infinite-precision solution. We provide an extensive computational evaluation based on randomly generated problem instances coming from applications in supply chain management and finance. The running time of the FPTAS is both theoretically and experimentally linear in the size of the uncertainty set.
Contributors
Contributors
A faster FPTAS for knapsack problem with cardinality constraint
A faster FPTAS for knapsack problem with cardinality constraint
Reviewing the Applications of Neural Networks in Supply Chain: Exploring Research Propositions for Future Directions
Supply chains have received significant attention in recent years. Neural networks (NN) are a technique available in artificial intelligence (AI) which has many supporters due to their diverse applications because they can be used to move towards complete harmony. NN, an emerging AI technique, have a strong appeal for a wide range of applications to overcome many issues associated with supply chains. This study aims to provide a comprehensive view of NN applications in supply chain management (SCM), working as a reference for future research directions for SCM researchers and application insight for SCM practitioners. This study generally introduces NNs and has explained the use of this method in five features identified by supply chain area, including optimization, forecasting, modeling and simulation, clustering, decision support, and the possibility of using NNs in supply chain management. The results showed that NN applications in SCM were still in a developmental stage since there were not enough high-yielding authors to form a strong group force in the research of NN applications in SCM.
Read moreSupply Chain Management (SCM): Its Future Implications
This keynote paper represents theory of Supply Chain Management (SCM) and its future implications as well as demonstrates chronological prospective of SCM in terms of time frame in different areas of manufacturing and service industries. SCM has been widely researched in numerous application domains during the last decade. Despite the popularity of SCM research and applications, considerable confusion remains as to its meaning. There are several attempts made by researchers and practitioners to appropriately define SCM. Amidst fierce competition in all industries, SCM has gradually been embraced as a proven managerial approach to achieving sustainable profits and growth. Finally, this study demonstrates Educational Supply Chain Management, as the application of SCM in the service industry, which would unlock other applications of SCM in different arenas. Integrated Tertiary Educational Supply Chain Management (ITESCM) model would be verified through Structural Equation Modeling (SEM) Techniques that would describe in this paper. The ITESCM model furnishes stakeholders of the supply chain with appropriate strategies to review and appraise their performance toward fulfillment of ultimate goals, i.e. producing high-ca- liber graduates and high-impact research outcomes, which represent two main contributions, for the betterment of the society.
Read moreApplications of Geographic Information Systems (GIS)in Supply Chain Management: Systematic LiteratureReview
Abstract—To date, the knowledge regarding the potential uses of Geographic Information Systems (GIS) in Supply Chain Management (SCM) and how GIS applications can deliver business benefits are limited. To explore the current uses of GIS in SCM, a systematic literature review (SLR) was conducted. Three databases (Web of Science, ProQuest, and Business Source Premier) were explored using the PreferredReporting Items for Systematic Reviews and Meta-Analyses(PRISMA) methodology. A total of 79 papers were included in the literature review. The combined findings showed that the GIS applications in SCM were a) network/transportation analysis/ routing algorithms (53 papers), b) Location-Allocation Site Search/ Selection (using multiple-criteria decision analysis [MCDA]) (45 papers), c) spatial analysis(people or land) (34 papers), d) connection with optimisation tools (32 papers) and e) visualisation/ monitoring or BuildingInformation Modelling (BIM) (8 papers). The industries and related Supply Chain (SC) domains that used GIS were a)Biomass Biofuel/Wood (33), b) Logistics (22), c)Humanitarian/ Emergency/ Healthcare (10), d) Food/ Agro-Industry (5), e) Petroleum/ Coal/ Shale Gas (3), f) FaecalSludge (2), g) Recycle & product footprint (2) and h)Construction (2). The research case studies took place in 26 countries, and the most prominent GIS software provider wasEsri’s ArcGIS. The findings of the first literature review ofthe GIS applications in SCM showed that many businessindustries have not utilised the GIS capabilities, such asvisualisation, spatial analysis, optimisation, and site research. However, GIS can significantly contribute to SCM decisionmaking by providing answers to cost minimisation, supplierselection, facility location, SC network configuration andasset management. Keywords— Supply Chain Management, Logistics, SystematicLiterature Review, GIS
Read moreArtificial intelligence applications in supply chain management
Artificial intelligence applications in supply chain management
A bibliometric analysis of IoT applications in logistics and supply chain management
A bibliometric analysis of IoT applications in logistics and supply chain management
Towards Practical FPRAS for #NFA: Exploiting the Power of Dependence
#NFA refers to the problem of counting the words of length n accepted by a non-deterministic finite automaton. #NFA is #P-hard, and although fully-polynomial-time randomized approximation schemes (FPRAS) exist, they are all impractical. The first FPRAS for #NFA had a running time of Õ(n 17 m 17 ε -14 łog(δ -1 )), where m is the number of states in the automaton, δ ∈ (0,1] is the confidence parameter, and ε > 0 is the tolerance parameter (typically smaller than 1). The current best FPRAS achieved a significant improvement in the time complexity relative to the first FPRAS and obtained FPRAS with time complexity Õ((n 10 m 2 + n 6 m 3 )ε -4 łog 2 (δ -1 )). The complexity of the improved FPRAS is still too intimidating to attempt any practical implementation. In this paper, we pursue the quest for practical FPRAS for #NFA by presenting a new algorithm with a time complexity of O(n 2 m 3 łog(nm)ε -2 łog(δ -1 )). Observe that evaluating whether a word of length n is accepted by an NFA has a time complexity of O(nm 2 ). Therefore, our proposed FPRAS achieves sub-quadratic complexity with respect to membership checks.
Read moreA PTAS for planar group Steiner tree via spanner bootstrapping and prize collecting
We present the first polynomial-time approximation scheme (PTAS), i.e., (1+e)-approximation algorithm for any constant e> 0, for the planar group Steiner tree problem (in which each group lies on a boundary of a face). This result improves on the best previous approximation factor of O(logn (loglogn)O(1)). We achieve this result via a novel and powerful technique called spanner bootstrapping, which allows one to bootstrap from a superconstant approximation factor (even superpolynomial in the input size) all the way down to a PTAS. This is in contrast with the popular existing approach for planar PTASs of constructing light-weight spanners in one iteration, which notably requires a constant-factor approximate solution to start from. Spanner bootstrapping removes one of the main barriers for designing PTASs for problems which have no known constant-factor approximation (even on planar graphs), and thus can be used to obtain PTASs for several difficult-to-approximate problems. Our second major contribution required for the planar group Steiner tree PTAS is a spanner construction, which reduces the graph to have total weight within a factor of the optimal solution while approximately preserving the optimal solution. This is particularly challenging because group Steiner tree requires deciding which terminal in each group to connect by the tree, making it much harder than recent previous approaches to construct spanners for planar TSP by Klein [SIAM J. Computing 2008], subset TSP by Klein [STOC 2006], Steiner tree by Borradaile, Klein, and Mathieu [ACM Trans. Algorithms 2009], and Steiner forest by Bateni, Hajiaghayi, and Marx [J. ACM 2011] (and its improvement to an efficient PTAS by Eisenstat, Klein, and Mathieu [SODA 2012]. The main conceptual contribution here is realizing that selecting which terminals may be relevant is essentially a complicated prize-collecting process: we have to carefully weigh the cost and benefits of reaching or avoiding certain terminals in the spanner. Via a sequence of involved prize-collecting procedures, we can construct a spanner that reaches a set of terminals that is sufficient for an almost-optimal solution. Our PTAS for planar group Steiner tree implies the first PTAS for geometric Euclidean group Steiner tree with obstacles, as well as a (2+)-approximation algorithm for group TSP with obstacles, improving over the best previous constant-factor approximation algorithms. By contrast, we show that planar group Steiner forest, a slight generalization of planar group Steiner tree, is APX-hard on planar graphs of treewidth 3, even if the groups are pairwise disjoint and every group is a vertex or an edge.
Read moreLate and early work scheduling: A survey
Late and early work scheduling: A survey
Internet of Things (IoT) in Supply Chain Management: Challenges, Opportunities, and Best Practices
The advent of the Internet of Things (IoT) has ushered in a transformative era in supply chain management, revolutionizing the way organizations monitor, analyze, and optimize their operations. This comprehensive survey paper explores the multifaceted landscape of IoT applications in supply chain management, shedding light on the challenges, opportunities, and best practices that define this technological paradigm shift. The paper delves into the fundamental principles of IoT, elucidating how sensor-laden devices, real-time data streams, and advanced analytics empower organizations with unprecedented visibility and control across their supply chains. It systematically examines IoT applications in key supply chain domains, including inventory management, asset tracking, cold chain monitoring, predictive maintenance, route optimization, and waste reduction. Each application is scrutinized for its role in enhancing efficiency, reducing costs, ensuring product quality, and advancing sustainability. Furthermore, this paper addresses the challenges inherent in implementing IoT within supply chains, such as data security, interoperability, scalability, and regulatory compliance. It underscores the importance of change management and workforce development in harnessing the full potential of IoT and presents a roadmap for best practices to overcome these obstacles. The paper culminates in a forward-looking exploration of future trends and innovations in the IoT-driven supply chain landscape. By offering a comprehensive overview of IoT's role in supply chain management, this paper equips practitioners, researchers, and decision-makers with a holistic understanding of the transformative power of IoT, empowering them to navigate the complexities, seize opportunities, and implement best practices that will define the future of supply chain management.
Read moreAn approximation algorithm for the two identical parallel machine problem under machine availability constraints
This study addresses the scheduling problem of two identical parallel machines with the objective of minimizing the total completion time under the machine availability constraints. To the best of our knowledge, this study is the first to develop a fully polynomial-time approximation scheme (FPTAS), a solution method which has been neglected in past studies, to solve the studied problem. The FPTAS, which is based on a dynamic programming algorithm is developed by applying a trimming-the-state-space approach. Theoretical proofs of the error bound and the time complexity for the proposed FPTAS are also provided. The computational results indicate that the proposed FPTAS performs more efficiently than a dynamic programming algorithm in terms of both run time and problem size. The error bound of the FPTAS is demonstrated to be within the pre-specified error bound.
Read moreThe Use of Artificial Intelligence in Supply Chain Management: Systematic Literature Review and Future Research Directions
This paper presents a systematic review of studies related to Artificial Intelligence (AI) and Machine Learning (ML) applications in Supply Chain Management (SCM). Our systematic search studied 109 journal articles published between 2007 and 2025. It was presented definitions for AI, ML, and SCM and a bibliometric analysis was carried out to examine trends and patterns in the existing literature. The 109 articles were grouped into five clusters based on keywords and abstracts, identifying promising research areas and proposes directions for future investigations. The current literature on AI and ML in SCM is expanding, with an increasing number of publications and growing diversity in applications, although significant gaps remain warranting attention. Various AI and ML techniques, including supervised learning algorithms, neural networks, and optimization techniques, have been studied in scenarios such as demand forecasting, inventory management, and risk analysis. Additionally, AI and ML methods are expected to gain broader acceptance in SCM scenarios, such as, application of Generative AI (GenAI) and Large Multimodal Models (LMMs); Quantum ML techniques to handle with large SCM data; to implement SHAP (SHapley Additive exPlanations) for demand forecasting and fraud detection; and to use Generative AI models (like, GPT-4) to generate synthetic supply chain scenarios.
Read moreSupply Chain Management (SCM) – Is it Value Addition towards Academia?
This keynote paper illustrates the theory and evolution of Supply Chain Management (SCM) as well as highlights chronological prospective of SCM in terms of time frame in different areas of manufacturing and service industries. The objective of SCM is to incorporate activities across and within organizations for providing the customer/stakeholders value. Supply Chain Management (SCM) has been widely researched in numerous application domains during the last few decades. Despite the popularity of SCM research and applications, considerable confusion remains as to its meaning, there are several attempts made by researchers and practitioners to appropriately define SCM. This paper demonstrates Educational Supply Chain Management, Integrated Tertiary Educational Supply Chain Management (ITESCM) model, as the application of SCM in the service industry, which would add the values towards academia. ITESCM model were identified and confirmed by 493 respondents, representing experts and administrators, faculty, staffs of the university, employers, graduates, etc. The resulting model was subsequently evaluated for accuracy and validity by multiple linear regressions (MLR) analysis and the structural equation modeling (SEM) technique. The research model provides a novel approach for decision makers of each supply chain components to review and appraise their performance toward fulfillment of ultimate goals i.e. producing high-caliber graduates and high-impact research outcomes, which represent two main contributions, for the betterment of the end customer, i.e., the society.
Read moreUsing Business Intelligence in Supply Chain Management
The paper defines the connotation and technology of business intelligence, discusses its concrete applications in supply chain management and studies the rules that the enterprises should follow while using business intelligence software. Through integrating the Business Intelligence with supply chain management, these problems can be solved effectively.
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