Table of Content

25 February 2018, Volume 27 Issue 2

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Theory Analysis and Methodology Study

Risky Large Group Emergency Decision-making Method Based on Fuzzy-conflict Entropy

XU Xuan-hua, SUN Han-han

2018, 27(2):  1-10.  DOI: 10.12005/orms.2018.0028

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Aiming at both the ambiguity of the emergency decision-making information and preference conflict for large group cause decision-making risk, the risky large group emergency decision-making method based on fuzzy-conflict entropy is proposed. Firstly, the large group is clustered by preference and classified to form aggregation preference matrix. Then, the interval-value intuitionistic fuzzy distance in the form of intuitionistic fuzzy number is proposed in order to reduce the loss of preference information, and generalized intuitionistic fuzzy number and its transformation method with intuitionistic fuzzy number are defined. Combined with prospect theory, the intuitionistic fuzzy prospect matrix of different cluster is obtained by conversion. Furthermore, a large group fuzzy-conflict entropy emergency decision-making model is constructed, which goal is based on minimizing the decision-making risk in the process of emergency decision-making, and the constraint condition is the partially attribute weights. According to this optimization model, we can get every attribute’s weight, and then prospect matrix and attribute’s weight are aggregated to the comprehensive prospect values to rank alternatives. Finally, a case analysis and comparison illustrate the rationality and effectiveness of the proposed method.

Overhauling Opportunity Decision-making of Equipment with Complex Construction Based on Availability

GUO Xiao-wei, LI Bao-gang, TENG Ke-nan

2018, 27(2):  11-14.  DOI: 10.12005/orms.2016.0029

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To maximize the availability of equipment furthest, overhauling work is necessary, so opportunity decision becomes an important problem. Number of components, life distributions and corresponding maintenance policy are impact factors of availability to the complex equipment. Taking the combination policy of preventive maintenance and corrective maintenance, the availability expression of single equipment about overhauling opportunity is deduced in the duty cycle, and the further opportunity decision model of equipments system is presented, which considers the effect of working age of components. Lastly, an example is presented to prove that the new model is reasonable and practical.


Optimal Advertising and Bundling Decisions for Complementary Products in a Supply Chain

PAN Lin, ZHOU Shui-yin, MA Shi-hua

2018, 27(2):  15-25.  DOI: 10.12005/orms.2018.0030

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This article studies a supply chain considering of a multi-product manufacturer and a retailer. The manufacturer provides two complementary products and sales them through a retailer. The retailer can sell complementary goods by two strategies: pure component and pure bundling. We introduce inverse line demand functions by taking into account the product cross elasticity and spillover effect, and employ a Stackelberg game model to explore the retailer’s optimal advertising and bundling jointed decisions in a decentralized or centralized supply chain. And the numerical example is used to investigate the effects of product complementarities and advertising cost on the jointed optimal decisions. The research indicates that both in a decentralized or centralized supply chain, the optimal advertising expenses of complementary goods are lower when the retailer takes a pure bundling sale strategy instead of taking a pure component. And, for the retailer, when the complementarities are high or the advertising cost is low, the pure component is a dominant strategy; when the complementarities are moderately low and the advertising cost is high, the pure bundling is the optimal strategy. The results offer some guidance to the retailer’s advertising and bundling joint decisions.

Multi Criteria Decision Making Method of Poset with Weight

YUE Li-zhu, ZHANG Zhi-jie, YAN Yan

2018, 27(2):  26-31.  DOI: 10.12005/orms.2018.0031

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In view of the partial order set method that can not solve the multi criteria decision problem which contains weight, this paper proposes a multi criteria decision making method with implicitly empowering weights. First it is expressed as a poset which contains n scheme and m criteria decision problem, then forms a new poset which containsm criterions according to the weight order. The poset relationships which contain each other prove that the new poset not only contains the weighted information, but also has a stronger ability of sorting. This way it only needs weight order without concrete weight in exercising, which is suitable for the multi criteria decision making problems whose weight is difficult to determine. This paper takes the Three Gorges reservoir water quality evaluation as an example, showing that the new method is superior to the original partial order set , and it can cluster and sort 13 schemes, but the original method is hardly applied to this example.

A Decision Analysis Method for Product Purchase Based on Online Review Information

LI Yong hai

2018, 27(2):  32-37.  DOI: 10.12005/orms.2018.0032

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Online review information has an important impact on consumers’ product purchase decisions. In recent years, it has been especially needed to attach more attention to the new research on how to make a pertinent product purchase decision based on volume related online review information. The objective of this paper is to propose a decision analysis method for product purchase based on online review information. For the candidate products, their features that the customers focus on, as well as feature weights are determined through the mining of volume related online review information firstly. Secondly, the product purchase decision matrix concerning the candidate products is constructed through the consumers’ sentiment analysis. On the basis of this, the ranking result of all candidate products is determined through a given alternative ranking method which is based on stochastic TOPSIS. Finally, a data experiment, which is conducted using the online review information of three inns from the website ‘ctrip.com’, is used to illustrate the practicability and feasibility of the proposed method.

Simulation-based Optimization for Capacity Allocation of Critical Resources in the Hospital

CHEN Le-tian, GENG Na, ZHU Yan-hong, MA Lei

2018, 27(2):  38-47.  DOI: 10.12005/orms.2018.0033

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Imaging facilities are usually critical resources in the hospital. Managers are under high pressure to pursue the high utilization of these resources, which lead to long waiting time of patients. Long waiting may increase the patients’ anxiety and the potential risk of aggravating patients’ condition. By considering different waiting time target(WTT), this paper proposes a bi-level nested threshold. When non-emergency patients arrive, the nested threshold reserves a certain amount of capacity for the future-arrival emergency patients. When a patient cannot reserve the time slot within his/her WTT, the patient will leave the hospital which incurs a penalty for the hospital. The objective is to minimize the total penalty for losing the patients. By using the partial derivatives of objective function with respective to nested threshold as the descending direction, this paper uses simulation for estimating the partial derivatives and finds the good threshold by iteration. Compared with the traditional nested threshold policy in numerical experiments, the proposed bi-level nested threshold can greatly reduce the penalty for losing patients.

Supply-Chain Co-innovation and Its Profit Allocation with Restricted Alliance Structure

YANG Jie, LAI Li-bang

2018, 27(2):  48-53.  DOI: 10.12005/orms.2017.0034

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In view of the three levels supply chain co-innovation with restricted alliance structure characteristic, we analyze the profits of different supply chain innovation alliance system, which is composed of a supplier, a manufacturer and a retailer. And the average tree solution (for short “A-T solution”)of graph cooperative game is used for the profit allocation. The results show that the supply chain profit is maximum when all players in alliance, and the profit allocation is more reasonable and effective by comparing A-T value with Shapley value. The method fully stresses the special importance of player’s position in structure. In addition, the conclusion is illustrated by contrasting restricted alliance structure with different levels of profit allocation in supply chain.

Electric VehicleTraveling Salesman Problem with Recharging Infrastructure Revisit

ZHANG Peng-wei, LI Ying

2018, 27(2):  54-64.  DOI: 10.12005/orms.2018.0035

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In order to reduce environmental impact or meet environmental regulations, logistics enterprises are converting their fleets of trucks to include electric vehicles. Due to the limited driving range, recharging infrastructures are involved in the routing plan of electric vehicles as well. The recharging infrastructure revisit refers to the circumstance that an electric vehicle returns to a previously visited recharging infrastructure. Due to the recharging infrastructure revisit, some constraints of classical Traveling Salesman Problem need to be modified, particularly the subtour elimination constraints. The paper focuses on the recharging infrastructure revisit, constructs a model of electric vehicleTraveling Salesman Problem with recharging infrastructure revisit which doesn’t have to estimate the count of revisits, and designs a modified ant colony optimization by introducing a method to distinguish the tour’s feasibility and a strategy to select and reuse infrastructures. The result shows that compared to the model without revisit, the proposed model with recharging infrastructure revisit is able to obtain the optimal solution under the lower driving range, and obtain a feasible route with the fewer recharging infrastructures by allowing them to provide the charge service repeatedly.

Some Characterizations of the Optimality of D-η-properly Semi-prequasiinvex Multiobjective Optimization

HUANG Ying-quan

2018, 27(2):  65-67.  DOI: 10.12005/orms.2018.0036

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Firstly, the existence of three kinds of D-η-properly semi-prequasiinvex mappings are verified with two examples. Then, two results are obtained, that is, the local efficient solution of multiobjective optimization is the global efficient solution and the local weak efficient solution of multiobjective optimization is the global weak efficient solution under D-η-properly semistrict(strict) semi-prequasiinvexity. They are verified by two examples. Lastly, the unicities are established about the global weak efficient solution and the local weak efficient solution of multiobjective optimization under D-η-properly strcit semi-prequasiinvexity.

Virtual Cellular Rescheduling under Interference of Emergency Order

HAN Wen-min, CHEN Ting, GAO Long-long, LI Zheng-yi, WENG Hong-Bing

2018, 27(2):  68-78.  DOI: 10.12005/orms.2018.0037

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In the virtual cellular manufacturing environment, to solve the problem of deviation of the original scheduling scheme caused by the interference of emergency order, this paper aims at exploring how to deal with the emergency order through the similarity degree between processes, that is, maintaining the initial process of processing order as far as possible. It also develops rescheduling methodology, which adapts to emergency order and regular order production. To deal with the interference of emergency order, this paper establishes a multi-objective non-linear integer programming model, and it requires that completion time of the emergency order, total process time of the system and similarity degree between the processes should be considered at the same time. The available machine assembly and processing time assembly are set for the part which is ready to be processed. According to the arrival of the emergency order, the assembly can adjust at any time. Because the model is a non-linear integer programming, a hybrid optimization algorithm based on the combination use of Genetic Algorithm (GA) and Ant Algorithm (AA) is presented, that is, by means of genetic algorithm to find the feasible solution assembly of the model, and then use the ant colony algorithm to solve the optimal solution of the model. Finally, taking practical production of shipbuilding as example, the hybrid optimization algorithm based on the combination use of Genetic Algorithm (GA) and Ant Algorithm (AA) is verified to be feasible and effective, in which the reconfiguration model of considering similarity degree between the processes will be solved.

Evolution Mechanism of Component Integrated Importance Measure Based on the System Reliability

DUI Hong-yan, CHEN Li-wei, ZHOU Hao, WANG Ning

2018, 27(2):  79-84.  DOI: 10.12005/orms.2018.0038

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Importance measure is an important approach to recognize and evaluate the system weakness. It is widely used in optimal design of system reliability, maintenance resources allocation, maintenance decision, risk analysis, etc. In this paper, based on the transition rates of component states, the effect mechanisms of the integrated importance measure on the system reliability are analyzed. They are used to identify the important component for improving the system reliability most. The relationships between the system reliability and importance measures are discussed and the evolution mechanisms of integrated importance measure with the transition rates change of component states are given in series and parallel systems. The integrated importance measure evaluates the change of the system reliability in unit time.

The Multi-evolutionary Game Model of Inclusive Preschool Education from thePerspective of Government Procurement of Public Service

XU Lan, WANFG Jing-xin, LI Xiao-ping

2018, 27(2):  85-93.  DOI: 10.12005/orms.2018.0039

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As a policy pursuit of our government to benefit people’s livelihood and an important move of our government to expand the scale and to improve the quality of preschool education in China, the promotion and development of inclusive preschool education can alleviate the problem of difficulty in entering kindergartens and high cost, and meet the multi-level and diversified requirements for preschool education. On the basis of analyzing the relationships among different parties in pushing forward inclusive preschool education, a model of evolutionary game theory among local governments, providers of inclusive preschool education and families with suitable children is built, and the factors affecting different stakeholders’ choice of strategies are analyzed, so that the conditions for their actions to tend towards stability are determined. It is shown that the evolutionary trend of behaviors of any one of the stakeholders is closely related to the strategies of other two stakeholders. It is of great significance for promoting inclusive education to improve the extra profit of providers of preschool education to cooperate with governments, reduce their cost for cooperation, and increase the loss while non-cooperation. At the same time, it is also of great importance to increase families’ profit and reduce their cost of participation during the promotion of inclusive preschool education.

Application Research

Empirical Research on the Establishment of Evaluation Indicators for the Evaluation of the Effectiveness of Aviation Industry Upgrading

ZHU Yu-ming, YAN Wen-qi, GUO peng

2018, 27(2):  94-105.  DOI: 10.12005/orms.2018.0040

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This paper constructs a framework of evaluation index system of aviation industrial upgrading effect based on the empirical method. On the basis of literature analysis and Delphi method, a preliminary index system for aviation industrial upgrading evaluation is established. By taking Shaanxi aviation industry as an example, we filter out the indicators which have weaker influences on Shaanxi aviation industry according to expert opinions. Then, we delete the indicators that have low component scores by using component analysis. In addition, we exclude the unimportant indicators of the two indicators having high correlation to overcome the problem of redundant information. Finally, by experience and knowledge of experts, and the contribution rate of index information amount, the eventual index system can reflect 80% of original information and its reliability is verified; and by an illustration example, the feasibility of this index system is also verified.

Use of Hybrid Fuzzy c-means and Probabilistic Neural Network Based on Improved Particle Swarm Optimization in the Prediction of Financial Distress

WU Chong, LIU Jia-ming, GUO Zhi-da

2018, 27(2):  106-114.  DOI: 10.12005/orms.2018.0041

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In order to investigate the role of probabilistic neural network (PNN) in the prediction of financial distress, and to overcome the difficulties caused by the smoothing parameter estimation and the high space complexity of the existing PNN, a novel adjustable parameter particle swarm optimization is proposed to optimize the smoothing parameter of PNN. Besides, an improved fuzzy c-means based on adjustable parameter particle swarm optimization is employed to achieve the instance selection for financial distress prediction, and then the combination of adjustable parameter particle swarm optimization and improved fuzzy c-means method are employed to help to overcome the shortcomings of PNN. The method hybridizing fuzzy -means and PNN based on improved PSO is proposed in the prediction of financial distress. An empirical study of listed companies in China is conducted, and the evaluation of the proposed model is validated. The results showed that the proposed method has a superior capacity in financial distress prediction compared with other artificial intelligent methods, such as neural network, decision tree, and support vector machine. In addition, the proposed method also improves the long-term financial distress prediction performance.

Balance of Ambidextrous Innovation and Organizational Performance: A Study Based on Multi-agent Simulation

SONG Yan-shuang, LIU Ren-jing

2018, 27(2):  115-123.  DOI: 10.12005/orms.2018.0042

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Using multi-agent simulation approach, this paper explores the functional mechanism of the balance of ambidextrous innovation on organizational performance, and examines the interaction effects of the balance of ambidextrous innovation and some contextual factors, namely interpersonal learning speed, task complexity, personnel turnover and environmental disturbance. The results of simulation experiments show that an inverted U-shaped relationship exists between the balance of ambidextrous innovation and organizational performance when the environment is stable, task complexity is moderate, and interpersonal learning speed is moderate. When task is too complicated or too simple, the characteristics of the task itself weaken the influence of the balance parameters of ambidextrous innovation on organizational performance, and the corresponding performance levels of different balance patterns have no significant differences. When interpersonal learning speed is slow, it enhances the exploration, and thus organization that has a tendency of exploitative innovation can achieve a higher level of performance. However when learning speed is too fast, organization that has more tendency of exploratory innovation performs better. When there exists personnel turnover and environmental disturbance, organization that carries out more exploitative innovation can enhance its ability of knowledge restructuring and integration, thereby improving its adaptation to the dynamic change of the environment.

Social Interaction, Investor Sentiment Contagion and Asset Bubbles: An Empirical Study Based on the Stock Forum Discussion

LUO Kan, WANG Chun-feng, FANG Zhen-ming

2018, 27(2):  124-132.  DOI: 10.12005/orms.2018.0043

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In the capital market, investors are not independent of each other, but they learn from each other and communicate with each other. With the rapid development of the Internet, this kind of social interaction becomes more frequent and widespread. As a result, the influence of social interaction on asset prices cannot be underestimated. In this paper, we put forward three theoretical hypothesis through theoretical modeling. Firstly, under the condition of the existence of social interaction, investor interaction will increase the degree of market sentiment contagion, and then will increase the asset bubbles. Secondly, when investor sentiment is high, the strength of investor interaction significantly positively influences the bubble, and vice versa. Affected by social interaction, investors active trading will increase the degree of investor sentiment contagion, and then will increase the asset bubbles. Afterwards, we construct social interaction and investor sentiment index based on stock forum discussion, to verify the correctness of the theoretical hypothesis proposed in this paper based on Chinese stock market.

Volatility Risk Premia: Evidence from the Hong Kong Warrant Market

WU Xin-yu, ZHOU Hai-lin, LI Xin-dan

2018, 27(2):  133-137.  DOI: 10.12005/orms.2018.0044

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The volatility risk premia contain important information about investor risk aversion, which has been the focus of much attention in financial econometrics literature. In this paper, we consider estimation of the volatility risk premia for the Hong Kong warrant market based on the non-affine GARCH diffusion stochastic volatility (SV) model. Using the Hong Kong Hang Seng Index and index warrant data, we develop the efficient importance sampling-based maximum likelihood (EIS-ML) method for estimating the model parameters (objective and risk-neutral parameters). Consequently, it allows us to infer the volatility risk premia. Empirical results demonstrate that, in the Hong Kong stock market, the volatility risk is priced by the market investors. In other words, there exists volatility risk premia in the market, and the volatility risk premia are positive in most cases, which implies that investors generally act risk seeking in the Hong Kong stock market.

Optimal Hedging Model and Empirical Study of Options Portfolio

YU Xing, ZHANG Wei-guo, LIU Yong-jun

2018, 27(2):  138-146.  DOI: 10.12005/orms.2018.0045

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The investors in practice are flexible to choose options portfolio with different maturity dates or strike prices to hedge risk. This paper proposes the optimal dynamic hedging of options portfolio under quadratic utility function. Unique existence of the optimal solutions to the models are proved and the expressions of optimum positions of option are formed under two cases of reversible and irreversible covariance matrix. Empirical analysis of different option portfolios on Shanghai 50ETF are implemented under four market conditions (i.e. first rising then falling, first falling then rising, falling and rising). The research results indicate that it has better effects using options portfolio with different maturity dates and strike prices. The research in this paper provides reference for the selection of options portfolio in hedging and hedging researches of extendible option.

Bank Deposits Reinsurance Pricing Based on the Mixed Fractional Brownian Motion

ZHAO Ming-qing, YUE Jin-zhi

2018, 27(2):  147-151.  DOI: 10.12005/orms.2018.0046

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On the premise of the underlying asset following a mixed fractional Brown motion, the paper gives the pricing formula of surplus reinsurance, and makes an empirical analysis. The results show that the reinsurance rates are generally lower than those of the original insurance premium, and premium and volatility are positive correlation. Therefore, the deposit insurance pricing model is compared with the actual situation.

Research on Implementation of Local Government Environmental Regulation under Chinese Fiscal Decentralization —Based on the Pollution Charge

PAN Feng, WANG Lin

2018, 27(2):  152-158.  DOI: 10.12005/orms.2018.0047

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Under the background of Chinese fiscal decentralization, the implementation of local government environmental regulation is studied in the case of pollution charge. The binding character of regulation is described by dynamic game analysis between local government and enterprise. The equilibrium model of regulation implementation is established based on the Peltzman model, and the formation mechanism of equilibrium is discussed. The influence of institutional factors, the environmental regulation policy, the cost and technology of pollution control to the regulation implementation are analyzed based on the equilibrium model. The results show that local government will maximize his utility by adjusting the intensity of regulation implementation, so as to achieve the state of equilibrium. The indifference curve and the equilibrium of regulation implementation are affected by the institutional factors of Chinese fiscal decentralization. Although more stringent environmental regulation policy is formulated by the central government can improve investment of pollution control in theory, which will be harmful to the implementation of local government environmental regulation. The implementation of environmental regulation will be promoted by reducing cost of pollution control, but the influence of pollution control technology to the implementation of environmental regulation will be different under different conditions.

Ground Source Heat Pump’s Life-cycle Energy Conservation and Technical Economy Analysis Models with Their Application

XU Hui, LIN Li-qiong, TAN Zhong-fu

2018, 27(2):  159-167.  DOI: 10.12005/orms.2018.0048

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Ground source heat pump(GSHP)is a renewable heating technology driven by clean energy. This paper aims at analyzing the influence GSHP has on energy conservation, emission reduction and the technical economy efficiency, emphasizing the applicability of the GSHP system, and thus encouraging GSHP to be a substitution for the traditional boiler heating in winter. First, based on the investment and application of GSHP in Beijing’s residences, this paper presents an energy conservation and technical economy efficiency analysis model with life cycle theory for GSHP to compare the efficiency of GSHP system with traditional boiler heating. The calculating results show the difference between two heating technologies in energy conservation and emission reduction and the technical economy efficiency of the users is also considered synthetically. Then, the sensitivity analysis methods are introduced to reflect the sensitivity factors and the impact degree of the environment and technical economy efficiency on using GSHP system in residential buildings. Finally, the paper proposes advice on popularizing the GSHP technology and predicts the promotion effects. Besides, under the “12-th five-year plan” policy, the energy-conservation and environment-protection contribution GSHP makes is also analyzed.

Management Science

Is it Always Beneficial to Implement BOPS？ A Comparative Research with Traditional Dual Channel

LIU Yong-mei, ZHOU Di

2018, 27(2):  168-177.  DOI: 10.12005/orms.2018.0049

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Based on the “Buy-Online-and-Pick-up-in-Store” policy proposed by some corporations that actualize channel-integration strategy, this paper constructs and compares the BOPS model with traditional dual channel in both centralized and decentralized contexts. Moreover, this paper explores whether it is always beneficial for companies to introduce BOPS on the basis of dual channel, and analyzes the impact of traditional-consumer proportion and degree of consumers’ service sensitivity. The results show that, first, whether corporations adopt the BOPS mode or not depends on the size of BOPS-consumer and consumers’ service sensitivity degree; second, it is more favorable for BOPS manufacturers when consumers’ real motive of BOPS behavior is to experience the offline service; and finally, corporations should not only consider the production and service cost but also have a precise understanding and orientation of consumers’ service sensitivity when making the price and service strategies.

Research on Optimal Model of Control Right of Venture Enterprises

CHEN Tao, DANG Xing-hua, JIA Dou-jie

2018, 27(2):  178-185.  DOI: 10.12005/orms.2018.0050

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It is a common phenomenon that entrepreneur and venture capitalists have conflict with control rights. In order to solve this problem,in this paper, we analyze the control mode between entrepreneurs and venture capitalists and the process of the strategies they select in controlling the game, and by applying the method of replicator dynamics, we find that: (1)the result is that joint control or camera control is stable strategy when entrepreneurs and venture capitalists choose whether to fight for control. (2)when the successful probability of the project, and residual claims the venture capitalist to obtain increase, they converge in the control, whereas they decrease, they converge in the camera control; when the probability of success of the project is more than 50%, the reduction in the fixed income converge in the joint control, start-up enterprises’ increased output converges in the joint control, and if not, it converges in the camera control. Finally, the model conclusions are tested by the CV Source database sample data, and the results are in agreement with the main conclusions of the theoretical model. The conclusion is of certain practical significance for guiding the rational choice of the mode of control right of the enterprise in China.

Study on the Impact of Search Cost on B2B Transaction ——Analysis Based on Upstream Firms Searching

LI Zhi-wen, MA Zhi-qiang, XIONG Qiang, TIAN Gang

2018, 27(2):  186-192.  DOI: 10.12005/orms.2018.0051

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Searching a trade partner is the first step for firms to develop B2B transactions. Information and communication technology nowadays has simplified the searching process, search cost of firms has been reduced substantially, and transaction efficiency has been improved largely. This paper based on the consideration that upstream firms conduct the search analyzes the impact of search cost reduction on B2B transaction volume as well as the firm profits. Search cost reduction triggers two kinds of effect: entry effect and matching effect. Entry effect promotes more and more firms to enter into the market and trade; matching effect incites firms to unceasingly search for their optimal trade partner. The findings of this paper are partially in conflict with the intuition. Particularly, taking the two effects together, B2B transaction volume does not constantly increase with the reduced search cost. B2B transaction volume shows both trends of declining and increasing, overall a slowing-downs growth with the reducing search cost; another conclusion against the intuition is that search cost reduction may not intensify the competition among firms, and it does not necessarily lead to a more competitive industry.

Optimal Investment of DC Pension under the Inflation and Minimum Guarantee

WANG Chuan-yu, FU Chun-yan, SHENG Guo-xiang

2018, 27(2):  193-199.  DOI: 10.12005/orms.2018.0052

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This paper mainly studies the optimal investment problem of DC pension under the inflation and minimum guarantee. First, we use the Ito formula to derive the stochastic differential equation for the real stock price discounted by inflation. And then, introducing European call options and considering the problem of maximizing the expected utility of terminal wealth discounted by inflation at retirement under the minimum guarantee, we use the martingale method to derive the explicit solution of the optimal investment strategy of DC pension at retirement and any time before retirement. In the end, we analyze the impact of the minimum guarantee on the optimal investment strategy of DC pension through using the Monte-Carlo method.