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Publications

Publications by Gonçalo Reis Figueira

2022

The Impact of Committing to Customer Orders in Online Retail

Authors
Figueira, G; van Jaarsveld, W; Amorim, P; Fransoo, JC;

Publication
M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT

Abstract
Problem definition: Online retailers are on a consistent drive to increase on-time delivery and reduce customer lead time. However, in reality, an increasing share of consumers places orders early. Academic/practical relevance: Such advance demand information can be deployed strategically to reduce costs and improve the customer service experience. This requires inventory and allocation policies that make optimal use of this information and that induce consumers to place their orders early. An increasing number of online retailers not only offer customers a choice of lead time but also, actively back-order missing items from a consumer basket. Methodology: We develop new allocation policies that commit to a customer order upon arrival of the order rather than at the moment the order is due. We provide analytical results for the performance of these allocation policies and evaluate their behavior with real data from a large food retailer. Results: Our policy leads to a higher fill rate at the expense of a slight increase in average delay. The analysis based on real-life data suggests a sizeable impact that should impact current best practices in online retail. Managerial implications: With the changing landscape in online retail, customers increasingly place baskets of orders that they would like to receive at a planned and confirmed moment in time. Especially in grocery, this has grown fast. This fundamentally changes the strategic management of inventory. We demonstrate that online retailers should commit early to customer orders to enhance the customer service experience and eventually, to also create opportunities for reducing the cost of operations. Superscript/Subscript Available

2023

Scheduling wagons to unload in bulk cargo ports with uncertain processing times

Authors
Ferreira, C; Figueira, G; Amorim, P; Pigatti, A;

Publication
COMPUTERS & OPERATIONS RESEARCH

Abstract
Optimising operations in bulk cargo ports is of great relevance due to their major participation in international trade. In inbound operations, which are critical to meet due dates, the product typically arrives by train and must be transferred to the stockyard. This process requires several machines and is subject to frequent disruptions leading to uncertain processing times. This work focuses on the scheduling problem of unloading the wagons to the stockyard, approaching both the deterministic and the stochastic versions. For the deterministic problem, we compare three solution approaches: a Mixed Integer Programming model, a Constraint Programming model and a Greedy Randomised algorithm. The selection rule of the latter is evolved by Genetic Programming. The stochastic version is tackled by dispatching rules, also evolved via Genetic Programming. The proposed approaches are validated using real data from a leading company in the mining sector. Results show that the new heuristic presents similar results to the company's algorithm in a considerably shorter computational time. Moreover, we perform extensive computational experiments to validate the methods on a wide spectrum of randomly generated instances. Finally, as managing uncertainty is fundamental for the effectiveness of these operations, distinct strategies are compared, ranging from purely predictive to completely reactive scheduling. We conclude that re-scheduling with high frequency is the best approach to avoid performance deterioration under schedule disruptions, and using the evolved dispatching rules incur fewer deviations from the original schedule.

2024

A cooperative coevolutionary hyper-heuristic approach to solve lot-sizing and job shop scheduling problems using genetic programming

Authors
Zeiträg, Y; Figueira, JR; Figueira, G;

Publication
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH

Abstract
Lot-sizing and scheduling in a job shop environment is a fundamental problem that appears in many industrial settings. The problem is very complex, and solutions are often needed fast. Although many solution methods have been proposed, with increasingly better results, their computational times are not suitable for decision-makers who want solutions instantly. Therefore, we propose a novel greedy heuristic to efficiently generate production plans and schedules of good quality. The main innovation of our approach represents the incorporation of a simulation-based technique, which directly generates schedules while simultaneously determining lot sizes. By utilising priority rules, this unique feature enables us to address the complexity of job shop scheduling environments and ensures the feasibility of the resulting schedules. Using a selection of well-known rules from the literature, experiments on a variety of shop configurations and complexities showed that the proposed heuristic is able to obtain solutions with an average gap to Cplex of 4.12%. To further improve the proposed heuristic, a cooperative coevolutionary genetic programming-based hyper-heuristic has been developed. The average gap to Cplex was reduced up to 1.92%. These solutions are generated in a small fraction of a second, regardless of the size of the instance.

2023

Using Supplier Networks to Handle Returns in Online Marketplaces

Authors
Pinto, C; Figueira, G; Amorim, P;

Publication
Springer Proceedings in Mathematics and Statistics

Abstract
To encourage customers to take a chance in finding the right product, retailers and marketplaces implement benevolent return policies that allow users to return items for free without a specific reason. These policies contribute to a high rate of returns, which result in high shipping costs for the retailer and a high environmental toll on the planet. This paper shows that these negative impacts can be significantly minimized if inventory is exchanged within the supplier network of marketplaces upon a return. We compare the performance of this proposal to the standard policy where items are always sent to the original supplier. Our results show that our proposal—returning to a closer supplier and using a predictive heuristic for fulfilment—can achieve a 16% cost reduction compared to the standard—returning to the original supplier and using a myopic rule for fulfilment. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.

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