Vyacheslav V. Kalashnikov, Roberto Carlos Herrera Maldonado, José-Fernando Camacho-Vallejo and Nataliya I. Kalashnykova
One of the most important problems concerning the toll roads is the setting of an appropriate cost for traveling through private arcs of a transportation network. The purpose of…
Abstract
Purpose
One of the most important problems concerning the toll roads is the setting of an appropriate cost for traveling through private arcs of a transportation network. The purpose of this paper is to consider this problem by stating it as a bilevel programming (BLP) model. At the upper level, one has a public regulator or a private company that manages the toll roads seeking to increase its profits. At the lower level, several companies-users try to satisfy the existing demand for transportation of goods and/or passengers, and simultaneously, to select the routes so as to minimize their travel costs. In other words, what is sought is kind of a balance of costs that bring the highest profit to the regulating company (the upper level) and are still attractive enough to the users (the lower level).
Design/methodology/approach
With the aim of providing a solution to the BLP problem in question, a direct algorithm based on sensitivity analysis (SA) is proposed. In order to make it easier to move (if necessary) from a local maximum of the upper level objective function to another, the well-known “filled function (FF)” method is used.
Findings
The paper proposes and tests two versions of the heuristic algorithm to solve the toll optimization problem (TOP) based upon SA for linear programming (LP) problems. The algorithm makes use of an SA procedure for the LP problem at the lower level, as well as of the “filled” function technicalities in order to reach the global optimum when “jammed” at some local optimum. Numerical experiments with a series of small and medium dimension test problems show the proposed algorithm’s robustness and decent convergence characteristics.
Practical implications
Numerical experiments with a series of small- and medium dimension test problems show the proposed algorithm’s robustness and reasonable convergence characteristics. In particular, while ceding in efficiency to other algorithms when solving small problems, the proposed method wins in the case of medium (higher dimensional) test models. Because of that, one can expect a serious real-life impact on the TOP when the proposed methods and/or their improved versions are developed further to be applicable in practice in the near future.
Originality/value
The proposed algorithms are original and perform well when solving small and medium test numerical problems. The proposed heuristics aim at filling in a gap in a series of numerical approaches to the solution of TOP problem listed in the Introduction. To the authors knowledge, no systematic attempts to apply the SA tools to the toll assigned problem have been recently made. Moreover, the combination of these powerful tools with the “FFs” techniques brings forward some new global optimization ideas. Exactly these features build up the knowledge this specific paper offers in relation to previous relevant works.
Details
Keywords
A. Hadi-Vencheh and A. Yousefi
Nowadays, most of the organizations have focused through the world on Six Sigma to reduce the costs, improve the productivity and enhance concerned individuals’ satisfaction…
Abstract
Purpose
Nowadays, most of the organizations have focused through the world on Six Sigma to reduce the costs, improve the productivity and enhance concerned individuals’ satisfaction, especially customers’ satisfaction. Annually, these organizations define and execute thousands of Six Sigma projects which involve a great deal of investments. But are all of these projects successful and do the organizations benefit from the above advantages? The purpose of this study is to proposing a methodology to to answer this question that: How can we reduce the risk of failure in Six Sigma projects? The first step to reduce the risk of failure in Six Sigma projects is selecting optimal ones which have the most profits and the least expected risks.
Design/methodology/approach
First, the effective criteria are recognized and defined in selecting Six Sigma projects. Then, a new data envelopment analysis (DEA) model is proposed for project selection process. A real example is resolved by the presented model. Finally, the authors use linear discriminate analysis (LDA) to examine the validity of obtained results from the proposed model.
Findings
The results show that the proposed model is a suitable tool for selecting Six Sigma Projects. The findings demonstrate that the selected projects by suggested integrated DEA model are those confirmed by LDA.
Originality/value
The paper, using a real case study, provides a mathematical model to enhance decision quality in Six Sigma project selection. Applying the specific DEA model is remarkable itself, which joined to a pioneering procedure to use LDA to validity evaluation of the results.