Table of Content

25 March 2017, Volume 26 Issue 3

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Theory Analysis and Methodology Study

Supply Chain Management with Time-Sensitive Products and Multiple Manufacturers

LIN Gui-hua, WANG Yan-ru, ZHU Xi-de

2017, 26(3):  1-6.  DOI: 10.12005/orms.2017.0051

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This papermainly studies a supply chain network with time-sensitive products and multiple manufacturers, in which each manufacturer hopes to minimize his operational cost and time consumption and, however, both the objective function and the constraints are dependent of the rivals’ decisions. Therefore,the model considered in this paper is essentially a generalized Nash equilibrium problem. In the exsiting works,the model is usually transformed into a general variational inequality problem. In this paper, based on the observation that allconstraints involved in the network are affine, we transform the model as amixed complementarity system. Compared with the general variational inequality problems, the mixed complementarityproblems are evidently much easier to solve. We make use of the well-known Fischer-Burmeister function to reformulate the mixed complementarity system as nonlinear equations and employ a semismooth Newton method to solve it. Preliminary numerical exampleindicates that the proposed approach is promising.

Low Carbon Supplier Selection Method Based on 2-dimension 2-tuple Linguistic Information and Fuzzy AHP-TODIM

WU Liang-gang, WEN Li

2017, 26(3):  7-16.  DOI: 10.12005/orms.2017.0052

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As to low-carbon supplier selecton problem where 2-dimension linguistic evaluation information is given by experts, a method based on 2-dimension 2-tuple linguistic information and fuzzy AHP-TODIM is proposed. To begin with, a modified 2-tuple linguistic model is built, based on which the definition of 2-dimension 2-tuple linguistic information(2DTL)is given and the weighted average operator of 2DTL is proposed. Secondly, indicator system of low carbon supplier evaluation is given. Finally, the 2-dimension linguistic information given by experts is transformed into 2-dimension 2-tuple linguistic information, and fuzzy AHP method is used to calculate the weights of criterias, then 2-dimension 2-tuple linguistic weighted average operator is employed to aggregate 2DTL. On this basis, TODIM method is extended to 2-dimension linguistic decision environment to obtain the ranking results of low-carbon suppliers. The validity of the method proposed is proved by an illustrative example.

The Supplier’s Chain Financing Strategy Based on Supply Chain Finance

WEN Zong-liang, CHEN Jia-yin, ZHOU Yong-wu, JI Kai

2017, 26(3):  17-26.  DOI: 10.12005/orms.2017.0053

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Accumulated capital pressure faced by the supplier due to the delay payment of the core enterprise will lead to the formulation of supplier chain financing system which consists of the suppler, the core enterprise and the bank. Based on the different scenarios of supplier’s initial capital and the credit period given by the bank, we develop three different models to capture three different cases of the supplier: no loan from the bank, loan from the bank and refund all within the credit period, loan that can’t refund all within the credit period. We identify the optimal ordering strategy of the core enterprise and the optimal produce strategy of the supplier under different conditions. We find that the supplier chain financing, to some extent, can achieve a tripartite win-win situation for the supplier, the bank and the core enterprise: through the delay payment and chain financing, the core enterprise and the supplier can release their capital pressure and also increase their profits; the bank can decrease the loan risk and expand the loan business.

Research on Cooperative Mechanism for a Distribution Center and n Supermarkets under the “Connecting Agriculture with Supermarket” Mode

LI Quan-lin, HUANG Ya-jing, E Cheng-guo

2017, 26(3):  27-35.  DOI: 10.12005/orms.2017.0054

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The “Connecting Agriculture with Supermarket” mode has become an important form of agricultural products in food circulation among cities and countries in China. Recently, supermarkets of China are developing rapidly, and some key issues such as low efficiency and unfairness ration of profit division need to be addressed. For these issues, we set up a simple cooperative game model for studying a supply chain system which contains a distribution center and n supermarkets. Firstly, the distribution center arranges the inventory resources corresponding to each supermarket through some proprietary and shared inventory capacities, and we show that such an inventory design can effectively improve the profits for this distribution center and the supermarkets. Secondly, we apply the Shapley value, the weighted Shapley value and the Owen value to allocate the profit in the supply chain to the distribution center and each supermarket, respectively. Our purpose is to provide the incentive mechanism design for the agricultural supply chain coordination. Finally, we use some numerical examples to indicate that the profit allocation strategy is not only simple but also easy to operate in practice.

Operation Strategy and Coordination in Supply Chain under Carbon Emission Trading Scheme

QIN Yan-hua, CAO Xi-yu, CAO Lei

2017, 26(3):  36-42.  DOI: 10.12005/orms.2017.0055

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Carbon emissions trading is an effective tool to control and reduce carbon emissions, but it also increases the enterprise operating costs, and therefore supply chain management decision-making is more complicated. The two stage supply chain composed of a manufacturer and a retailer is considered, and supply chain coordination problem based on the quantity discount contract is researched under different carbon emissions trading policy(internal members of the supply chain carbon emissions trading, external carbon emissions trading market), comparing with the situation without carbon emissions constraints. The results show that supply chain quantity discount contract can been coordinated under different carbon emissions trading policy; the optimal order quantity of the supply chain under no carbon emissions constraints is greater than the optimal order quantity of supply chain under external carbon emissions trading; the optimal order quantity and the expected profit of the supply chain under internal members of the supply chain carbon emissions trading will be increased with the increase of carbon emissions quota and ultimately equal to the optimal order quantity and the expected profit of the supply chain under no carbon emissions constraints; the expected profits of supply chain under external market emissions trading policy will be increased with the increase of carbon emissions quota.

Construction of Generalized Method of Moments of Effective Spread Estimators based on Price Ranges

GAO Yang, WANG Chao

2017, 26(3):  43-53.  DOI: 10.12005/orms.2017.0056

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This paper combines the information from daily high and low prices and constructs the new estimators for the effective bid-ask spread by the Generalized Method of Moments(GMM)based on the High-Low estimator proposed by Corwin and Schultz (2012). Then the numerical simulation studies are conducted to compare the estimation accuracy between the GMM estimators based on price ranges and other three common spread estimators in the literature, namely the Roll covariance estimator, Bayes estimator and High-Low estimator. Simulation results reveal that whether in the ideal case that the prices can be observed continuously or in the realistic unideal case and the volatility is relatively small, GMM estimators are more accurate than the other three estimators. Furthermore, an empirical study in Chinese stock markets also demonstrates that the estimated accuracy of the proposed GMM estimators is better than the other three estimators. Therefore, the proposed GMM estimators provide an effective method to measure the trading costs of financial assets.

Determination of Product Attribute Weight and TOPSIS Method Improvement Based on the User Choice

LI Bao-zhen, FENG Sheng-jie

2017, 26(3):  54-62.  DOI: 10.12005/orms.2017.0057

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Traditional TOPSIS(Technique for Order of Preference by Similarity to Ideal Solution)evaluation method is insufficient, for its weight is subjective, and updating the plan makes rank reversal. This paper tries to improve the determination of attribute weights based on objective data of the user participate in the evaluation and product attributes, through improving the standardization of data matrix and determining the absolute ideal points to eliminate the rank reversal in traditional TOPSIS method. The example based on the improved TOPSIS is applied to the different brand mobile phone comprehensive evaluation, which shows that the improved TOPSIS evaluation method has certain validity and feasibility.

Optimal Order Policy for Deteriorating Items Under the Conditions of Two-warehouse, Delay in Payments and Cash Discounts

LIU Ji-qiong, YANG Ai-feng, FENG Shuai, ZHANG Xue-mei

2017, 26(3):  63-71.  DOI: 10.12005/orms.2016.0058

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The existed two-warehouse inventory models usually do not consider combining permissible delay in payments and the cash discount. However, in fact, while the suppliers provide the vendors a permissible delay in payments, the cash discounts policy will be also carried out to encourage the vendors paying off as soon as possible. It would accelerate the suppliers’cash flows and reduce bad debt losses. Therefore, under the situation of combining policies of permissible delay in payments and the cash discount, a new two-warehouse inventory model for deteriorating items is developed. Then we provide theoretical analysis of the optimal solutions and the solving step to find the optimal order policy and the optimal timing of payments. Finally, numerical examples and sensitive analysis of parameters are presented to illustrate the developed model.

A Buy-sell Two-sided Matching Decision-making Method for the E-Brokerage Based on Double Reference Points

LIU Xue-peng, LIU Liang, QI er-shi

2017, 26(3):  72-77.  DOI: 10.12005/orms.2017.0059

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To solve the buy-sell two-sided matching decision-making problem for E-Brokerage, this paper constructs a transaction model influenced by double reference points based on the cumulative prospect theory. And it obtains the optimal prices and the corresponding comprehensive satisfaction degrees of each possible combination of buyer and seller. Then according to the developing phases and the variation of low and peak seasons, this paper constructs three buy-sell two-sided matching models: the profit-oriented model, the customer-oriented model and the trade-off model. At last, a numerical example is given to illustrate the feasibility and effectiveness of the proposed method.

Pedestrians’ Behavioral Characteristics and a Game Theoretical Analysis while Crossing an Unsigned Intersection

HAN Xi-shuang, ZHAI Feng-yong, LI Ping, SHI Jing-xin

2017, 26(3):  78-85.  DOI: 10.12005/orms.2017.0060

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Throagh the questionnaire analysis of spot towards pedestrians and their crossing behavior, some key factors are presented. Furthermore, pedestrian crossing related research of transportation engineering is introduced and two kinds of game theoretic model, pedestrian first move model and automobile first move model are constructed in the extensive form. Equilibrium depicts the mechanism of pedestrians’ crossing. Besides, the range of coefficients respect to different kinds of conflicts is also processed. The outcome of this paper is also meaningful for administration and construction of pedestrian related facilities.

NSGAII Based Automated Negotiation in Collaborative Product Development Project

HUANG Min-mei, YUAN Ji-jun, CAO Liang

2017, 26(3):  86-91.  DOI: 10.12005/orms.2017.0061

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The supply chain core enterprise needs to negotiate with cooperative enterprises about the schedule, budget and quality of collaborative product development project. Scientific and efficient negotiation decision method is helpful for the cooperative product development project participants to achieve a win-win objective. The framework of negotiation problem with multi-agent system is established, the multi-objective counter proposal model of the negotiation agent to both maximizes its own utility and similarity with the opponent’s proposal is constructed, and the automatic negotiation decision algorithm based on NSGAII is proposed. The positive integer and decimal mixed real number coding is used in NSGAII, and non feasible individual is removed by adding constraints in the genetic operations. The experimental results show that the algorithm can improve the success rate and the joint utility of negotiation. It also illustrates the impact of the lowest acceptable utility of negotiation agent on negotiation result.

Evolutionary Game Analysis of Knowledge Transfer in Industry Alliance Based on Cumulative Prospect Theory

WU Jie, WU Xiao-ju, LI Peng, SHENG Yong-xiang, SHI Qin-fen

2017, 26(3):  92-99.  DOI: 10.12005/orms.2017.0062

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The process of knowledge transfer is a complicated course of playing chess. Evolutionary game theory is a good way to explain behaviors of knowledge transfer actor. Considering that the evolutionary game has limitation in explaining the irrational factors and risk preference of knowledge transfer actor, prospect theory is integrated into evolutionary game theory in this study. A prospect value function is used to improve partial parameter in payoff?matrix to analyze the evolutionary stable strategy. The result shows that there are two evolutionary stable strategies in knowledge transfer process. Transfer policy is determined by the direct incomes, the cost of knowledgetransfer, prospect profit and loss. Risk losses have larger influence on transfer policy for suppliers, while potential earnings have less influence on transfer policy for recipients.

Evolutionary Game Model on Cooperation of Chinese Photovoltaic Equipment Developed Based on Multi-agent Participation

GUO Ben-hai, LU Dong-dong, CHEN Wei

2017, 26(3):  100-107.  DOI: 10.12005/orms.2017.0063

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For the cooperative development of photovoltaic equipment in China, based on replicated dynamic method of evolutionary game, we build the tripartite evolutionary game model for three game agents——photovoltaic enterprise, equipment manufacturer and local government. According to this model, we finally analyze the evolutionary stable strategies. The results prove that to achieve more innovation of value enhancement is the basis of multi-participators’ cooperation, and to determine the reasonable profit distribution proportion is the key to make the co-development of photovoltaic equipment possible. Meanwhile, the penalty mechanism should be built to inhibit an act of betray, and the effective motivation from the government should be given to reduce the cost of co-development.


Hesitant Fuzzy Language Decision Making Method Based on 2-tuple

GE Shu-na, WEI Cui-ping

2017, 26(3):  108-114.  DOI: 10.12005/orms.2017.0064

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Hesitant fuzzy linguistic term sets are suitable to deal with the situations where people have hesitancy in providing their linguistic assessments. In order to reduce the loss of information in decision making, an approach based on hesitant fuzzy 2-tuple sets is proposed for multi-attribute decision-making problems. We first introduce the notion of hesitant 2-tuple sets, and develop some operators for hesitant 2-tuple sets. By applying these operators, we get the evaluation information corresponding to each alternative, then the alternatives are ranked by the score function. Finally, an illustrative example is given to demonstrate the practically and effectiveness of the proposed method.

Application Research

Analysis of the Low Carbon Economy Efficiency in China: Based on a Method of Three Stage SBM-DEA Model with Undesirable Outputs

CHENG Xiao-hong, YI Guo-dong, LIU Xiang

2017, 26(3):  115-122.  DOI: 10.12005/orms.2017.0065

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This paper proposes a three-stage SBM-DEA approach to estimate the performance of low carbon economy efficiency(LCEE)in China during the period 2000~2012. The three-stage SBM-DEA approach is non-radial and non-oriented and can eliminating the impacts of external environment and random factors. The results indicate that the scores of LCEE in most provinces in China are small and see continuing decrease until 2006, when the LCEE show upward trends. Comparing to the one in the first stage, the performances of LCEE in the third stage are smaller, which illustrates that the external environment variables indeed impact the performance of LCEE. The Eastern area shows the best performance of LCEE, and followed by the Central and Western areas. Moreover, based on the analysis of input and output slacks, as well as the external environment variables which reflect the economic features of a province, it can be found that improving the resources-allocation efficiency among the Eastern, Central and Western areas is critical to improve LCEE. In addition, factors market reform should be implemented to promote technology and management advantages of improving LCEE in the Eastern area flow into the Central and Western areas, so as to improve their LCEE.

Online Product Information Disclosure Strategies with False Failure Returns

ZHANG Tao, LI Gang, LUO Mei-ling, HUANG Feng-feng

2017, 26(3):  123-130.  DOI: 10.12005/orms.2017.0066

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The uncertainty faced by consumers usually results in false failure returns when they purchase products online. For the online retailer, making a proper information disclosure strategy and providing a reasonable money back guarantee are effective measures to promote sales and increase profit. Based on consumer utility theory and game theory, this paper conducts a stylized model, which shows how the firm influences customers’ uncertainty and return probability by disclosing product information. By analyzing firm’s optimal information strategy in monopolistic and duopolistic cases, this paper suggests firm’s strategy is determined by product characteristics, which are related to product value and return cost. This paper generates implications of product information disclosure for online retailers.

An Evaluation Method of Self-determination for Better Action Conforming to Natural Rules Based on Evaluated Objects’ Advantage Identification

LIU Hong-tao, ZHAO Xi-nan

2017, 26(3):  131-137.  DOI: 10.12005/orms.2017.0067

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Aimed at multi-indexes society business colony, a new evaluation method of self-determination for better action conforming to natural rules based on the perceptive of evaluated objects’ advantage identification is suggested. According to the principle of respecting evaluated objects’ differences in advantage structure, the process of evaluation can be divided into three parts which are the identification of individual advantage, the model recognition of group behavior match better conforming to natural rules and the weight determination of the typical model. Firstly, without prejudice against common value, the individual advantage characteristic structures which are the most beneficial to determine each one’s value are identified. Secondly, the model of the evaluated group behavior is obtained by cluster analysis. At the same time, the weight of each model can be got by the numbers of the evaluated objects it has and the distortion degree of its judgment and then we can get the overall evaluation value. Finally,a numerical example is investigated to illustrate the feasibility and effectiveness of the proposed method.

Risk Hedging Strategies Based on Value-at-Risk

HUANG Jin-bo, ZHENG Jun, DING Jie, ZHOU Hong-tao

2017, 26(3):  138-147.  DOI: 10.12005/orms.2017.0068

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In this paper, we research the risk hedging strategies based on Value-at-Risk under normal distribution and arbitrary distribution settings respectively. Under the assumption of normal distribution, this paper discusses the properties of the hedge ratio of minimum variance strategy and minimum VaR strategy thoroughly and find that the mean and variance of portfolio return induced by minimum VaR strategy are smaller than minimum variance strategy. Without any distribution assumption, this paper constructs a new VaR hedging model which firstly estimates VaR by nonparametric kernel estimation method and then embeds the VaR kernel estimator into minimum VaR fomula. By this way, we achieve the goal that risk estimation and risk hedging are implemented simultaneously. The empirical results are very robust to show that the kernel estimation method can reduce risk more effectively than minimum variance strategy and minimum VaR strategy under normal distribution setting.

Risk Transmission Effect between Chinese Stock Index Futures Market and Stock Market ——Based on the Method of B-CAViaR

DONG Shan-shan, FENG Yun

2017, 26(3):  148-156.  DOI: 10.12005/orms.2017.0069

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We employ CAViaR model to estimate the value at risk of CSI300 stock index futures and spot index value, and study risk conduction mechanism between Chinese stock index futures market and stock market in view of daily trading behavior, based on the intraday and inter-day data. The results show that the risk of futures market’s intraday autocorrelation characteristic is significantly higher than that of the spot market, but there is no significant different between inter-day autocorrelation, and the risk of futures spillover to the spot market only take place in the intraday process of information transmission. Compare to the cash market, the leveraged and rotary futures trading facilitate intraday speculation and arbitrage, so the efficiency of information transmission is higher in the futures market than that in the cash market.

The Risk Assessment and Countermeasures of Transformation and Uupgrading on Logistics Park

TAO jing-hui, WANG dan

2017, 26(3):  157-164.  DOI: 10.12005/orms.2017.0070

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Industry is in a critical period of transformation and upgrading in mainland china, and therefore, it is of vital significance to research the risk assessment and put forward the targeted countermeasures about the transformation and upgrading of logistics park. For the associated risk factors under the background of the above, this paper firstly constructs the evaluation index system, and applies principal component analysis to reduce the evaluation index dimension, then employs fuzzy comprehensive evaluation method to calculate the risk value of many factors, induces the main risk factors in the process of transformation and upgrading, and analyzes the causes of major risk factors. Finally, the prevention countermeasures are discussed in view of the main risk factors.

Study on Quality Control of Co-product in Rare Earth Separation

MA Yue-feng, LU Hu-sheng, ZHEN Jian-jing

2017, 26(3):  165-171.  DOI: 10.12005/orms.2017.0071

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Against the background of rare earth separation enterprises, this paper summarizes the feature and quality attribute of co-product first. Then the exponentially weighted moving average(EWMA)control chart of the single product and the multiple residual T² control chart of the co-product are drawn respectively. The comparative analysis results of the two control charts show that the multiple residual T² control chart of co-product can reduce the probability of false alarm compared to EWMA control chart. Finally, based on the abnormal patterns of multiple residual T² control chart, this paper classifies the abnormal patterns using support vector machine model(SVMM), finds out the classification rules, constructs PSO-SVM classifier and optimizes the SVM parameters by the method of Particle Swarm Optimization Algorithm. The results show that the PSO-SVM classifier can greatly improve the classification accuracy. Pattern recognition can be used to diagnose the causes for the abnormality of the co-product multiple residual T² control chart and improve the level of process quality management.


Forecasting Model Based on Impulse Response Grey and Its Application

WANG Chuan-hui, GONG Wei-feng , FANG Zhi-geng, LI Yu-mei

2017, 26(3):  172-177.  DOI: 10.12005/orms.2017.0072

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In view of the problem of external shock response of the system, we establish a grey prediction model including functional analysis factors in combination with functional theory and grey system theory. And a grey forecasting model of Bayesian network inference is also established for shock response and system control by applying Bayesian networks inference technique. These modelcan be used to analyze the the dynamic inference problem of the functional analysis factors of shock response evolution. On the basis of the changes of functional analysis factors, we can predict and revise the system development trend. In 2013,the new policy affected the real estate economy, so the development trend of the real estate economy is has changed. Based on the present session information of real estate economy, the historical trend has been revised using the grey forecasting model of Bayesian network inference. The deviation between the predicted results and the actual results is only 3.81 percent, which is more accurate than the prediction results of other models. The established models are applied to predicting the development of the real estate economy by recent external impulse response emphasis on the development and utilization of recent data.

Management Science

Batch Production Planning for Mixed Flow of No-wait Assembly Lines

MENG Qiu-nan, BAI Xue, ZHAO Cong

2017, 26(3):  178-186.  DOI: 10.12005/orms.2017.0073

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In mixed flow of no-wait assembly lines, it is a challenge to deliver orders timely and supply parts needed by the second stage accurately in batch production. A mathematical model of two-stage batch planning is presented aiming at minimization of both WIP inventory cost and earliness/tardiness penalty of orders. A bi-objective ant colony optimization algorithm(BOACO)is then developed wherein an operator of preferring to different targets for each of ants, feasible solutions and mechanism of updating pheromone based on the batch are formulated to improve the local and global search ability of BOACO significantly. The experiments are conducted to compare BOACO and NSGA-II. The result shows BOACO outperforms NSGA-II within the same computation time. Therefore, the proposed method of batch production planning provides support for enhancing the performability of production planning in multiple batch production lines of two stages.

Research on the Influence of Crisis Enterprise Network Interaction on the Effect of Trust Restoration

SUN Hua-mei, ZHANG Chen-guang

2017, 26(3):  187-190.  DOI: 10.12005/orms.2017.0074

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In recent years, various industries have been exposed to the product harm crisis events. Once the event occurs, it is easy to cause enormous damage to the brand and corporate reputation. Based on this background, this paper explores the relationship between enterprise network interaction and the effect of consumer trust and repair after the crisis. The results of empirical analysis show that the enterprise network interaction has a positive effect on the effect of consumers’ trust restoration after the product harm crisis. At the same time, the assumption of the intermediary role of risk perception and the negative emotions of consumers in the model has been verified. In addition, the study analyzes the regulation effect of product harm crisis types on the relationship between the enterprise network interaction and trust restoration effect. The study provides an effective solution for the enterprise to deal with the product harm crisis.

Maintenance Optimization Model Based on Product Quality Control

YANG Xiao-mei, ZENG Jian-chao

2017, 26(3):  191-199.  DOI: 10.12005/orms.2017.0075

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According to the relevance of product quality and machine degradation state, a maintenance policy is designed by integrating periodic inspection and product quality control. In this policy, the machine is inspected periodically and x-bar control chart is used to detect the abnormal shift of the product quality. Combining the inspect result of the product quality shift and machine degradation state, the corresponding maintenance activity is chosen. Based on this policy, a maintenance optimal model can be derived by using renewal theory and statistical process control methods. Then, genetic algorithm is used to solve this model. The experimental results validate the feasibility and availability of this model.