Table of Content

20 January 2017, Volume 26 Issue 1

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Theory Analysis and Methodology Study

Optimization of Production Allocation and Algorithm Design Basedon Group Distributed Manufacturing

LIU Hong-wei, YUAN Dong-ping, ZHENG Fei

2017, 26(1):  1-7.  DOI: 10.12005/orms.2017.0001

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The mode of Group Distributed Manufacturing production management based on the distributed concept has become more and more important in present market, and the trend of this operation mode changing from manufacturing enterprise to the service-oriented businesses is increasingly conspicuous. However, there exists little special scheduling research about this production management mode. Therefore, in this study a mathematical model for the production allocation problem in Group level is established, which takes the dispersion of customer orders and the limitations on factory production capacity and species diversity of production into consideration. Then, the genetic algorithm is applied to solve this problem and put forward a new two-stage and non-negative integer chromosome coding method based on the order and factory to ensure the production capacity and order constraints. The PMX cross algorithm avoids the production of illegitimate chromosome. Besides, a period of order data coming from W Group Company is analyzed to justify the validity of the model and the algorithm.

An Adaptive-self Genetic Algorithm for Solving Electric Vehicle FastRecharging Location Problem with Detour Characteristic

LU Jian-yi, YANG Chao, JIE Wan-chen

2017, 26(1):  8-17.  DOI: 10.12005/orms.2017.0002

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Fast recharging station location is one of the most important aspects in electric vehicle operations management. Considering the fact that the electric vehicle users will detour from their shortest paths to refuel the vehicles, this paper studies a battery fast recharging stations location problem and builds a bilevel integer programming model to minimize the sum of building cost and deviation cost. Firstly, an A-Star algorithm is presented to generate the path sets of all OD pairs, and then an adaptive-self genetic algorithm(AGA)including local iterative search is proposed to solve this problem.Compared with genetic algorithm(GA)in two networks with different size, simulation results indicate that AGA is effective especially in the large network. Furthermore, using the ZheJiang Province as the network, this paper also analyzes the impact of battery’s driving range on building cost and intercepting value.

Study on Multi-objective Flexible Job Shop Scheduling Basedon Chaos Quantum Optimization and MAGTD

NING Tao, WANG Xu-ping, JIAO Xuan

2017, 26(1):  18-24.  DOI: 10.12005/orms.2017.0003

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In order to solve the flexible job-shop scheduling(FJSP problem in the multi objective environment, the simulation model is established aiming at minimizing the makespan and penalty, and an improved chaos quantum particle swarm optimization(IQPSO)algorithm is proposed. On the basis of the characteristics of the production delivery time in actual production, we introduce the method of initializing population with chaos mechanism. To update the quantum individual, we propose a novel method to improve the quantum rotating angle. The chaos local optimization strategy using the ergodicity of chaos mechanism is proposed. The multi-attribute decision model based on weighted grey target strategy is introduced to select the most satisfied schedule scheme. The feasibility of the proposed algorithm and the validity of solving the multi-objective FJSP are verified through the classical example and a mechanical mould job-shop scheduling.

Single Machine Scheduling Problems with Learning Effectsand Deterioration Under Group Technology

MA Wei-min, SUN Li

2017, 26(1):  25-28.  DOI: 10.12005/orms.2017.0004

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In this paper, we introduce a group scheduling model with time-dependent deterioration and position-dependent learning effects. In our models, the group setup times are linear functions of their starting times and the processing times of jobs have learning effects and deterioration. The objectives of scheduling problems are to minimize the makespan and the sum of completion times, respectively. We show that the problems remain solvable in polynomial time under the proposed model.

A Dual-mode Batch Delivery Model Based onAnticipatory Shipping for Online Retailers

XU Hao-xuan, ZHANG Jin-long, WU Xiang

2017, 26(1):  29-34.  DOI: 10.12005/orms.2017.0005

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In an environment of anticipatory shipping, this paper deals with a dynamic batch delivery problem for a B2C online retailer, in which two shipping modes of common carrier and private carrier are between the order fulfillment center and the hub. A three-echelon dynamic batch delivery model is firstly developed through mixed integer programming. Then the model is reformulated through network flow representation. By analyzing the network flow model, several optimality properties are obtained. Based on these properties, we develop a dynamic programming algorithm with polynomial running time of O(T²). Finally, this study uses a numerical case to verify and validate the effectiveness and applicability of our method.

Research on Collaboration of Location-Routing-Inventory OptimizationModel Based on the Consumers’ Low Carbon Behaviors Preference

TANG Jin-huan, JI Shou-feng, ZHANG Yang, ZHU Bao-lin

2017, 26(1):  35-44.  DOI: 10.12005/orms.2017.0006

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This paper presents a location-routing-inventory problem which is researched with regard to the consumers low carbon behaviors preference under voluntary emission reduction driven. Firstly, the market demand function and price function are derived with consumers’ low carbon behaviors preference considering, and then a multi-objective model of location-routing-inventory is constructed which can make trade-off the carbon emissions and economic cost. The Pareto sets can be obtained by solving the multi-objective model. On this basis, the carbon quotas tax is introduced, and the total revenue function can be obtained with consumers’ low carbon behaviors preference and carbon quotas tax. Finally, the emissions reduction solution and sensitivity analysis are given under voluntary emissions reduction and regulatory emissions through the numerical analysis.

Inventory Ordering and Pricing Policy for Cold Chain Itemswith Weibull Survival and Death Characteristics

WANG Xian-jie, LIU Peng-hui, WANG Shu-yun

2017, 26(1):  45-52.  DOI: 10.12005/orms.2017.0007

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An inventory ordering and pricing policy for deteriorating items which has Weibull survival and death characteristics and continuous stochastic demands influenced by price during an infinite time-horizon is discussed. In the system, the demand rate is exponential function of price while the deteriorating rate obeys three parameters Weibull distribution and replenishment lead time is a fixed variable. The objective is to maximize the system’s total average expected profit based on a continuous review(r,Q)policy. The Direct Approach-Taylor series expansion is applied which can avoid the complexity of solving stochastic differential equations to obtain the optimal strategy. Some conclusions are obtained by using the matlab and sensitivity analysis in numeric examples simulation. First, with the increase of the replenishment lead time and unit warehousing costs, the average profit is decreasing. Second, the increase of the unit processing costs affects the replenishment quantity within some limits, and eventually leads to the decline of the system average profit. Third, with a fixed shelf life time, the environment factors have negative correlation with the average profit. These discoveries are good for the improvement of the model and have certain guidance to the real problems.

Financing and Pricing Decision in a Three-stage SupplyChain under Capital Constraint

ZHOU Jian, REN Lu-lu

2017, 26(1):  53-60.  DOI: 10.12005/orms.2017.0008

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The paper is to study the relationship between financial decisions and pricing in a three-stage supply chain consisting of one supplier, one manufacturer and one retailer. Most of the current study about supply chain pricing aims to two-stage supply chains. However, supply chains are complex in the real world. Based on the previous research, we expand two-stage supply chains into three-stage, and analyze the relationship between financial decisions and pricing in hypothetical condition of risk neutral market. The study shows that supply chain financing can increase supply chain enterprise’s profit and create value when the supplier has capital constraint.

Closed-loop Supply Chain Decisions with Different MarketPowers Under Government Regulations

HU Shu, MA Zu-jun, DAI Ying

2017, 26(1):  61-67.  DOI: 10.12005/orms.2017.0009

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To investigate the influence of different market powers and government regulations on closed-loop supply chain(CLSC)decision-makings for waste electrical and electronic equipment(WEEE), two models for CLSC consisting of a manufacturer, a retailer and customers are developed with or without government regulations respectively. Based on game theory, optimal government regulation tools, optimal operation strategies and profits of CLSC members, and optimal social welfare are obtained while the market is dominated by the manufacturer or the retailer. The results show that whether it is under government regulation or not, the market power has no impacts on retail price, recycling rate, government regulation tools and social welfare, but it would influence wholesale price, collection price and profits of members. While the market is dominated by the manufacturer, the wholesale price is higher; while the market is dominated by retailer, the collection price is higher. In general, both the manufacturer and the retailer can achieve maximal profits when the market is dominated by itself. In addition, whether the market is dominated by the manufacturer or the retailer, government regulations would increase wholesale price and retail price. While the indicator of recycling rate is less than the manufacturer’s optimal recycling rate, government regulations would usually increase collection price and profits of members.

Research on Emergency Decision-Making Support Method forScenario Response Based on Emergency Cases

WANG Ning, GUO Wei, LU Guo-cui

2017, 26(1):  68-75.  DOI: 10.12005/orms.2017.0010

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To meet the needs of emergency “scenario-response”, provide support for oriented scenario decision-making from aspect of the specific, implementable emergency decision alternatives, enhance the science of decision-making, the paper proposes an emergency scenario decision-making support method based on emergency cases. According to the characteristics of emergency scenario revolution, we put forward the emergency’s scenario representation method, introduce the emergency decision-making scheme into the scenario representation. Then we retrieve the similar scenario from emergency cases based on scenario representation, get the emergency decision-making schemes from the similar scenarios, and divide the emergency decision-making scheme into hazard bearing body’s emergency measure vectors. We evaluate the emergency measure vectors from the aspects of income and subsequent impact. We rank the collection of emergency measure vectors and compose the decision-making scheme according to the evaluation results to support the scenario decision-making. Finally, we prove the feasibility of method through an example.

Research on the Weight of Hybrid Multiple Attribute Decision-making Problem

ZOU Shu-liang, WU Liang-peng

2017, 26(1):  76-81.  DOI: 10.12005/orms.2017.0011

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A method is proposed to entrust with the weights for the hybrid multiple attribute decision-making problem with real number, interval number and intuitionistic trapezoidal fuzzy numbers, and the weight is evaluated by three aspects. They are reliability of the attributes, role of the attribute and the decision makers’preference of attributes. Firstly we define the meaning of reliability, and calculate reliability. Then the effect of attribute to decision is calculated based on the difference between attributes. Next, the distance between the intuitionistic trapezoidal fuzzy number is employed to confirm decision makers’ preference. Moreover, the projected model is used to integrate the three dimensionalities. This approach can make the weight more comprehensive. Finally, a case is applied to demonstrate its feasibility.

Analysis of Connotation and Key Elements of Construction Supply Chain

LI Zhen, SHENG Zhao-han, MENG Qing-feng

2017, 26(1):  82-88.  DOI: 10.12005/orms.2017.0012

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Construction supply chain management is very important for the improvement of engineering performance. It is one of the important topics in engineering management. Engineering system complexity makes some theories of manufacturing supply chain management not applicable to engineering practice. Firstly, the elements of supply chain theory are identified and analyzed in engineering practice. Secondly, the paper defines and identifies the concept and connotation of construction supply chain. Then, differences and similarities between manufacturing supply chain and construction supply chain are sorted out and summarized. Based on the above studies, the paper proposes out key elements should be concerned during construction supply chain management and practice. It aims to provide a theoretical basis for improving construction supply chain management performance.

Evolutionary Game Model and Analysis of the Straw Power GenerationSupply Chain under the Government Incentives

CAO Hai-wang, DOU Xun, XUE Chao-gai, WANG Ao-dong

2017, 26(1):  89-95.  DOI: 10.12005/orms.2017.0013

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As to the supply of raw materials in the straw power generation, this paper deals with the modeling and analysis on the straw power generation supply chain under the government incentives from the perspective of evolutionary game perspective in the first time. First, the influencing factors of straw power generation supply chain are analyzed, and based on the sequential decision-making model of the straw power generation supply chain which is composed of power plant, brokers and farmers, the optimal decision-makings of three participants are obtained. Second, the decision-making and profit change of the supply chain under the government incentives is analyzed, and the importance of the government incentives is approved. Then, under the government incentives, the evolutionary game model between power plant and brokers is established and the incentive strategies are obtained. Finally, an example is taken to explain the cooperation relationship between the power plant and brokers in the straw power generation supply chain, which also verifies the proposed models and analysis. This study disclosed cooperation rules in the straw power generation supply chain, and provided the basis for enterprise decision making of power plants and brokers, as well as government regulation, so as to establish long-term cooperative relationship to promote the development of straw power generation industry.

Research on Preference Convergence of Group Decision Making underthe condition of Uncertainty Information

YANG Lei, ZHAO Jiu-ru

2017, 26(1):  96-102.  DOI: 10.12005/orms.2017.0014

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Interaction between individual decision-making is an important factor to reach group viewpoint consistency. This paper introduces the concept of decision maker’s uncertainty viewpoint and weights influence function. Using it as a base, we constructs a dynamic opinion evolution model and achieve a matlab simulation. This paper takes the uncertainty preferences for constant, anddivides all the preference uncertainty of decision makers in the group decision into the same and different. The results of the simulation are: uncertainty information of decision-making individuals is an important factor which affects the consistency of group decision making, when uncertainty preference is large, decision-making group is more likely to get viewpoint consistency; when the uncertainty preference is small, the decision-making group is difficult to come to an agreement, eventually forming a few view clusters; when the initial concept is distributed uniformly, idea generation will ultimately evolve into the form which is determined by the point of view held by the group whose viewpoint has smaller uncertainty. Research content helps to understand the evolution law of the consensus in the group decision and provides a reference for the guidance strategies of group decision-making.

Application Research

Analysis of Effect When Store Brands are Introducedin Indirect and Mixed Channels

LI Kai, SUN Jian-hua, YAN Jian-yuan

2017, 26(1):  103-112.  DOI: 10.12005/orms.2017.0015

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The introduction of store brand has an effect on market performance of retailers and manufacturers. This paper summarizes how to use method of mathematical modeling to study store brand and then builds a mathematical model about a retailer and two manufacturers, through which we analyze the effect of manufacturer and retailer’s market performance when store brands are introduced in indirect channel and mixed channel. On one hand, store brand introduction in both channels can lead to the decline of national brand's wholesale price, retail price and manufacturer profits, which is negative for manufacturer. On the other hand, store brand introduction in both channels can result in the increase of whole channel profits, retailer profits and the retailers’ profit proportion of whole channel profits. In addition, retailer should provide store brand with high-quality and high-price, rather than low-quality and low-price. As for manufacturers, changing the sales channel is rarely adequate to compete with store brands.

Investment Timing and Capacity Choose of Shale Gas DevelopingProject under Demand Uncertainty

LIU Zi-han, GUO Ju-e, WANG Zhan-hao

2017, 26(1):  113-120.  DOI: 10.12005/orms.2017.0016

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Based on the engineering implementation perspective and combined with the inconsistency of planning capacity and actual output and production decline, we establish decision model of investment timing and drilling quantity of shale gas project under the situation of demand uncertainty, get the analytical solution of the optimal investment timing and the optimal drilling quantity. What’s more, we also discuss the uncertainty, production decline rate, drilling success rate and the drilling cost change on the influence of the optimal timing of investment and the optimal number of drilling. The results show that the optimal timing of investment is influenced by the unit effective drilling cost but has nothing to do with the optimal number of drilling, and the optimal number of drilling is affected by market demand expected growth rate and volatility but has nothing to do with the market demand. The increase of uncertainty, production decline rate, or drilling cost, will cause the investment timing delay and increase in the number of drilling. The increase of drilling success rate will have the opposite effect. We also find that investment threshold and the optimal number of drilling has the same change rule.

Study on the Policy Effectiveness Evaluation of National MajorRegional Planning Based on Key Factor

MENG Bin, CHI Guo-tai

2017, 26(1):  121-131.  DOI: 10.12005/orms.2017.0017

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By taking the national major regional planning, Yangtze River Delta, as the empirical research object, this paper selects three policy indicators: the earmarks from the national ministry of finance, the national subsidies income and the national investment in fixed assets, which are highly associated with the policy effectiveness evaluation, by Weighted Grey Relational Degree. The paper establishes Logarithmic Regression Function between policy indexes and planning indexes value-added of the tertiary industry. The predicted value of value-added of the tertiary industry in a specific year is forecasted from the historical data, which is contrasted with the actual value, for evaluating the effectiveness of the policy implementation. The first feature and creativity in this article is deleting the indexes which have small correlation with policy effect evaluation by Grey Relational Degree, in order to screen out the index which have a significant influence on the effectiveness of the major regional planning policy. Second, time weight vector is used to reflect that the grey weight of the nearer year’s index was higher of correlation and it will be more necessary to retain, which guarantees that the nearer the data, the more remarkable of the influence. Third, the effectiveness of the goal is contrasted with the realistic effect to get the policy performance. The goal effect is predicted by historical data without policy planning under natural condition. The realistic effect is measured under the implementation of planning policy at the prediction time. Empirical study shows that Central finance earmarks input, which has significantly influence on Shanghai and Zhejiang province, should be increased and national investment in fixed assets, which has less significance on Shanghai and Zhejiang province, and should be decreased.

Analysis of Hedging and Market Entry under Demand Risk

LIU Feng-jun, XING Wei, QIU Jiang-nan, ZHAO Na

2017, 26(1):  132-140.  DOI: 10.12005/orms.2017.0018

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Demand risk is one of the main risks faced by enterprises, which affects the production management and administrative decision of enterprises. This paper considers a product competition market consisting of multiple risk-averse enterprises, and analyses the decision-making problem about hedging and market entry. We first investigate the effect of hedging against the demand risk based on game theory. Then, we discuss the enterprises’ hedging and market entry strategies, and show three types of market equilibrium structures, respectively. Finally, we provide a numerical illustration to show our analytical results. Our study shows that hedging strategy may improve the enterprises’ ability to avoid the demand risk, which leads the enterprises to improve their outputs, and as a result, helps the firms achieve better performances. The number of enterprises with hedging strategy decreases in the total number of enterprises. When the degree of market competition or the market cost increases, there will be more enterprises choosing to adopt hedging strategy, and less choosing to enter the market.

Research on the Exchange Rate Pass-through of RMB’s Fluctuationto Chinese Export Price: Differentiation of the Effect betweenPersistent and Temporary Fluctuations

WANG Xiang-ning, ZHANG Hao

2017, 26(1):  141-147.  DOI: 10.12005/orms.2017.0019

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The change of real economy, as well as disturbance of monetary policy and financial market, respectively gives rise to persistent and temporary fluctuations of exchange rate. In order to study the impact of the two different kinds of RMB exchange fluctuations on Chinese export prices, this paper constructs a theoretical model to analyze the pricing behavior of export enterprises in the condition of the imperfect competition market. Meanwhile,Blanchard-quah decomposition is introduced to study fluctuations of exchange rate and, the nature of the two different changes of exchange rate is obtained. Based on VEC model, the empirical study shows that, persistent and temporary fluctuations of the RMB exchange bring about pass-through coefficients to Chinese export price, which respectively reaches 0.84 and 0.67 during January 1997 to December 2012. Therefore,it is of high significance to accelerate transformation and upgrade of the export sector as well as maintain the stability of monetary policy and financial market , for reducing the impact of RMB exchange rate fluctuations on Chinese export enterprises.

Optimal Asset Allocation with Inflation Risk and Heston’s Stochastic Volatility

SUN Jing-yun, ZHENG Jun, ZHANG Ling

2017, 26(1):  148-155.  DOI: 10.12005/orms.2017.0020

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In this paper,we consider the continuous time optimal investment portfolio problem under mean-variance criterion. In order to hedge the risks of interest and inflation in the market, we assume that the financial market consists of an nominal zero-coupon bond and an inflation-indexed bond,and a risky asset who’s price follows Heston’s stochastic volatility. We first establish an optimal investment portfolio problem under mean-variance criterion. Then we transform the original problem into a tractable one,and by using stochastic dynamic programming and dual Lagrangian theorem, a closed-form of the efficient policy and the efficient frontier are obtained. Finally, a sensibility analysis is provided for corresponding parameters.

Management Science

Improving Decision-Making on the Effect of KnowledgeTransfer in IT Outsourcing under Risk

CHEN Guo, QI Er-shi

2017, 26(1):  156-165.  DOI: 10.12005/orms.2017.0021

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By building a Stackelberg game model, we study knowledge transfer strategies of both the contractee and the contractor in IT outsourcing under risk. We analyze the influence of the risk attitude and the firm-specificity of the transferred knowledge of the contractee to the effect of knowledge transfer in IT outsourcing. The results show that, if the risk awareness of the contractee is not strong enough, the contractee should not transfer its knowledge; the contractee can partially improve the effect of knowledge transfer by enhancing its sense of risk and overall improve the effect of knowledge transfer by enhancing the firm-specificity of the transferred knowledge. Finally, we propose the strategies of the contractee to improve the effect of knowledge transfer in the long run and short run. Numerical examples are given to illustrate the effectiveness of these strategies.

A Model for Complex Product Development Performance Basedon Knowledge Management

LUO Ling, WANG Juan-ru, ZHANG Kun

2017, 26(1):  166-172.  DOI: 10.12005/orms.2017.0022

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The knowledge management significantly affects the development performance in complex product development team. This paper studies the development performance of complex product research and development teams from the perspective of knowledge management. Based on the teamwork and knowledge management perspectives, some assumptions are proposed, a quantitative model for complex product development performance is established by using cost-income method in economics, and then the main related parameters are analyzed. The results indicate that: improving the member’s acceptance ability can increase the development performance, with the marginal performance diminishing to zero; the relationship between the team size and the team development performance shows the inverted U curve; bigger team size is suitable for more grouping; the relationship between the working time allocation and the team development performance depends on the member’s acceptance ability.

Patterns Prediction and Policy Analysis of Steel Use in Societal Evolution

WANG Lin, QI Zhong-ying, PAN Feng

2017, 26(1):  173-181.  DOI: 10.12005/orms.2017.0023

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Chinese steel patterns are predicted by using dynamic material flow analysis from 2014 to 2100. The results show that per capita steel stock will increase rapidly between 2014 and 2030s, then saturate after 2035. Total stock of steel will rise rapidly first and decline gradually according to the population growth scenario of medium variance at the United Nations. Chinese steel consumption peaked in about 2015. The output of steel will be more than the amount of consumption after 2035, and reach the maximum 30 years later than the consumption peak. Considering the steel patterns in the future, the production of steel should be arranged according to the time and quantity of consumption peak appeared, cut down before the peak; the processing ability of the steel output should be improved, the research of circulation technology should be strengthened, and the resource decoupling should be realized; the international steel market should be expanded by combining with the primary industrialized countries and releasing the excess capacity.

Decision-Making Models and Effects of Deposit-RefundSystem for E-Waste in China

XIE Tian-shuai, ZHANG Ju, WANG Fu-xue

2017, 26(1):  182-189.  DOI: 10.12005/orms.2017.0024

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This paper applies game theory to a deposit-refund system for e-waste management in China, and analyzes the decision-making models and effects of the deposit-refund system. It shows that the deposit-refund system based on maximizing social welfare, under a higher environmental cost of informal recycling, can improve social welfare and reduce the amount of e-waste recycled informally. Simultaneously, e-waste would be completely recycled and properly disposed by formal recyclers if deposit-refund is high enough. It also shows that the desirable minimum deposit-refund varies with recyclers’ handling profits per e-waste, namely it decreases with the handling profit of a formal recycler and increases with the handling profit of an informal recycler. While social welfare increases with the handling profit of a formal recycler and decreases with the maximum salvage value of e-waste evaluated by consumers. Maximizing social welfare, however, would be no longer a suitable decision-making objective for the deposit-refund system when the environmental cost of informal recycling is lower.

Study on the Service Mode Decision of Core Enterprise ofProduct Servitised Supply Chain

FENG Qing-hua, CHEN Ju-hong, LIU Tong

2017, 26(1):  190-199.  DOI: 10.12005/orms.2017.0025

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In a product servitised supply chain dominated by system integrators, considering the customer utility, the optimal decision is analyzed in the situation in which the service is provided by the service provider or the service is provided by the service providers and system integrators. It is found that when the service is provided by service provider, with the increase of the service cost coefficient, the service level reduces, which leads to the customer’s net utility,customer’s requirements and benefits of supply chain enterprise decrease. When the system integrator provides services with the service provider, which can increase the customer’s requirements, it can expand the customer’s net utility, improve the benefit of system integrator and total benefits of supply chain,but reduce the service provider’s profit.