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A gray market emerges when some distributors divert products to unauthorized distributors/retailers to make sneaky profits from the manufacturers' differential channel incentives, such as quantity discounts. Traditionally, manufacturers rely heavily on internal audits to periodically investigate the flows of products and funds so as to deter the gray market; however, this is too costly given the large number of distributors and their huge volumes of orders. Owing to the advances in data analytics techniques, the ordering quantities of a distributor over time, which form multivariate time series, can help reveal suspicious product diversion behaviors and narrow the audit scope drastically. To that end, in this paper, we build on the recent advancement of representation learning for time series and adopt a sequence autoencoder to automatically characterize the overall demand patterns. To cope with the underlying entangled factors and interfering information in the multivariate time series of ordering quantities, we develop a disentangled learning scheme to construct more effective sequence representations. An interdistributor correlation regularization is also proposed to ensure more reliable representations. Finally, given the highly scarce anomaly labels for the detection task, an unsupervised deep generative model based on the learned representations of the distributors is developed to estimate the densities of distributions, which enables the anomaly scores generated through end-to-end learning. Extensive experiments on a real-world distribution channel data set and a larger simulated data set empirically validate our model's superior and robust performances compared with several state-of-the-art baselines. Additionally, our illustrative economic analysis demonstrates that the manufacturers can launch more targeted and cost-effective audits toward the suspected distributors recommended by our model so as to deter the gray market. History: Accepted by Ram Ramesh, Area Editor for Data Science & Machine Learning. Funding: This work was supported by the National Natural Science Foundation of China [Grants 72031001, 72301017, 72371011, and 72242101]. Supplemental Material: The software that supports the findings of this study is available within the paper and its Supplemental Information (https://pubsonline.informs.org/doi/suppl/10.1287/ijoc.2022.0155) as well as from the IJOC GitHub software repository (https://github.com/INFORMSJoC/2022.0155). The complete IJOC Software and Data Repository is available at https://informsjoc.github.io/. [ABSTRACT FROM AUTHOR]

We propose a preference-learning algorithm for uncovering Decision Makers' (DMs') contingent evaluation strategies in the context of multiple criteria sorting. We assume the preference information in the form of holistic assignment examples derived from the analysis of alternatives' performance vectors and textual descriptions. We characterize the decision policies using a mixture of threshold-based, value-driven preference models and associated latent topics. The latter serve as the stimuli underlying the contingency in decision behavior. Such a probabilistic model is constructed by using a flexible and nonparametric Bayesian framework. The proposed method adopts a hierarchical Dirichlet process as the prior so that a group of DMs can share a countably infinite number of contingent models and topics. For all DMs, it automatically identifies the components representing their evaluation strategies adequately. The posterior is summarized by using the Hamiltonian Monte Carlo sampling method. We demonstrate the method's practical usefulness in a real-world recruitment problem considered by a Chinese IT company. We also compare the approach with counterparts that use a single preference model, implement the parametric framework, or consider each DM's preferences individually. The results indicate that our approach performs favorably in both interpreting DMs' contingent decision behavior and recommending decisions on new alternatives. Furthermore, the approach's performance and robustness are investigated through a computational experiment involving real-world data sets. History: Accepted by Ram Ramesh, Area Editor for Data Science and Machine Learning. Funding: J. Liu received financial support from the National Natural Science Foundation of China [Grants 72071155 and 71701160]. M. Kadziński received financial support from the Polish National Science Center under the SONATA BIS project [Grant DEC-2019/34/E/HS4/00045]. X. Liao received financial support from the National Natural Science Foundation of China [Grant 71872144]. Supplemental Material: The software that supports the findings of this study is available within the paper and its Supplemental Information (https://pubsonline.informs.org/doi/suppl/10.1287/ijoc.2023.1292) as well as from the IJOC GitHub software repository (https://github.com/INFORMSJoC/2021.0328) at (http://dx.doi.org/10.5281/zenodo.7608750). [ABSTRACT FROM AUTHOR]

Personalized points-of-interest (POI) recommendation is very important for improving the service quality of location-based social network applications. It has become one of the most popular research directions in the industry and academia. However, the realization of high-quality personalized POI recommendation faces three major challenges: (i) the interest drift issue caused by the spatiotemporal dynamics of user check-in behavior, (ii) how to integrate as much heterogeneous information as possible to alleviate data sparseness and cold start issues, and (iii) how to use implicit feedback to model complex high-order nonlinear user-POI interactions. To jointly address all these challenges, we propose the TGVx recommendation framework and establish a dynamic personalized POI deep recommendation model, where T and G respectively represent time and geographic factors, V represents out-of-town visitors, and x represents time slot number. TGVx is composed of x parallel TGV models where the TG module mines high-order nonlinear user-POI interaction relationships and integrates multisource heterogeneous information, and the V module transfers the check-in records of out-of-town visitors in hometowns and generates pseudo check-in records in the target city. Technically, we design a new unsupervised deep learning network T-SemiDAE for the TG module. We built a POI-word heterogeneous network for the V module and used graph embedding technology to match the most similar POIs across cities and transfer check-in records. The experimental results on the actual datasets show that the TGVx model is always better than other advanced models in terms of accuracy and diversity for local and out-of-town recommendation scenarios. Compared with the best baseline model semi-deep auto-encoder with a conditional layer the average improvement rates of accuracy and diversity of TGVx are 17.1% to 58.6% and 2.25% to 28.86%, respectively. In theory, our research effectively uses data science and analysis methods to design a recommender system. In practice, our research is motivated by practical problems, and the research results have high practical promotion value. History: Accepted by Ram Ramesh, Area Editor for Data Science & Machine Learning. Funding: This work was supported by the National Natural Science Foundation of China [Grants 71831003, 72293563, and 72172025], the Dalian Science and Technology Talent Innovation Support Policy Project [The High-level Talent Innovation Team Project 2022RG17], and the Liaoning Provincial Department of Education [Basic Scientific Research Project LJKMZ20221582]. Supplemental Material: The software that supports the findings of this study is available within the paper and its Supplemental Information (https://pubsonline.informs.org/doi/suppl/10.1287/ijoc.2023.1286) as well as from the IJOC GitHub software repository (https://github.com/INFORMSJoC/2021.0010) at (http://dx.doi.org/10.5281/zenodo.7407123). [ABSTRACT FROM AUTHOR]