Table of Content

25 October 2011, Volume 20 Issue 5

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Theory Analysis and Methodology Study

Contract Design for Vendor Managed Inventory Programs with Pricing Decision

GUAN Ruo-xi, ZHAO Xiao-bo

2011, 20(5):  1-7. 

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The design of management system of university teachers’ performance related pay benefits from management science and information technology, and based on the university teachers’ career and personnel management originating from effective management automation, information transparency, fairness and efficiency. The management system can automatically generate teacher performance allowance through several main function modules of the division and processes, the setting parameters of the system and the operation.The system will achieve the optimal allocation of limited resources and rational allocation of performance related pay, which can realize the complementary and harmonious win-win situation of teacher-to-university by motivating the teachers and staff members.

A Bilevel Supply Chain Network Equilibrium Model

YAO Feng-min, TENG Chun-xian, CHEN Zhao-bo, ZHOU Yan-shan, WE ling

2011, 20(5):  8-13. 

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The supply chain network equilibrium model is researched by using the theories of equilibrium and bilevel programming in this paper. According to the characteristic of Stackelberg Game in the upper and lower level as well as the Non-cooperative Game in the same level of supply chain network, a bilevel supply chain network equilibrium model is constructed, which actually is a bilevel programming with equilibrium constraints problem. In addition, in order to realize the optimization of supply chain network on the whole, the buy back contract is introduced to coordinate the supply chain network. Finally, the method of penalty function is used to solve the model, and the rationality as well as the effectiveness of our model are illustrated by a given example.

Model of Emergencies Risk Transmission in Demand-pull Supply Chain

LIU Jia-guo

2011, 20(5):  14-19. 

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To study the mechanism of emergencies risk transmission in demand-pull supply chain, the risk transmission process is analyzed, and some models are presented using game theory. Studies show that the market capacity is positively correlated with the profit of the supplier and retailer, but the price sensitivity is to the contrary. And the influence of market capacity is more sensitive than price sensitivity’ to the profit. It proves the existence of the bullwhip effect. No matter how the cost changes, both the risk elasticity coefficients are more than 1.

A Method for Normal Stochastic Multiple Attribute Decision Making Considering Interactions among Attributes

LIU Yang, FAN Zhi-ping, ZHANG Yao

2011, 20(5):  20-26. 

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In this paper, a novel method is proposed to solve normal stochastic multiple attribute decision making problems where interactions among attributes are considered. Firstly, attribute values in the form of normal random variables are unified. Then, considering the interactions among attributes, the overall evaluation values in the form of normal random variables are calculated by aggregating the unified attribute values using normal random variables operation formulas and Choquet integral formulas. Furthermore, the ranking of alternatives is determined by comparing the overall evaluation values using the pre-defined order relations between normal random variables. Finally, the feasibility and validity of proposed method are illustrated by a numerical example.

Online Preemptive Scheduling of Two-machine Flow Shops

YANG Ming, LU Xi-wen, WANG Lei-yang

2011, 20(5):  27-30. 

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We investigate the problem of online preemptive scheduling of two-machine flow shops with the objective of minimizing the makespan. Jobs arrive independently over time and the information of a job is not known until its arrival. We present a lower bound of the problem. For the special case with only two arrival times we provide a algorithm which is -3/2 competitive.

An Improvement of the Algorithm of Avoiding Artificial Variable in LP

ZHOU Xue-Song, ZHAO Heng

2011, 20(5):  31-38. 

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We give an improvement about the algorithm of avoiding artificial variable in LP which is introduced in^[1], so that the calculate amount of the algorithm in LP is reduced.

Disruption Management for Single Machine Scheduling with Discounted Factor

WANG Jian-jun, LIU Feng, HE Ping

2011, 20(5):  39-45. 

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This research investigates the issue of revising a machine schedule, when a predictable disruption occurs after a subset of the jobs has been processed on a single machine. The paper concentrates on the case where the Weighted Discounted Shortest Processing Time(WDSPT)rule is optimal for the original scheduling problem. In such case, the original schedule is no longer optimal or feasible. The approach developed here differs from most rescheduling researches in that both the original objective and the deviation cost caused by disruption are considered. Based on ideal point method, a dynamic programming algorithm is adopted to deal with the up-rising bi-criteria scheduling problem. Finally a numerical experiment is given to illustrate the model and its effectiveness for the disruption management problem.

Adjustable Entropy Method for Unconstrained Nonlinear lp Problem

ZHAO Jian-qiang, LI Su-bei

2011, 20(5):  46-49. 

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This paper proposes a new method based on adjusting entropy to solve unconstrained nonlinear l_pproblem. An algorithm is given, which is convergent. The article compares this new method with the method based on maximum entropy to solve unconstrained nonlinear l_p problems by simulation. The result shows that the algorithm is effective.

A Multi-Covering Model and Its Algorithm for Facility Location Response for Large-Scale Emergencies

GE Chun-jing, WANG Xia, GUAN Xian-jun

2011, 20(5):  50-56. 

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In order to satisfy the multi-requirements for emergency facilities in response for large-scale emergencies, this paper mainly focuses on the covering location problem. Considering the special characteristics of large-scale emergency response, two concepts are introduced in this paper, that is, the minimum critical covering distance and the maximum critical covering distance for demand point. A multi-covering location model for facility response for large-scale emergencies is proposed based on the multi-quantity and quality service for demand. The objective of this model is to maximize the population covered by facilities as much as possible, addressing the demand uncertainty and multi-time coverage at the same time. The improved genetic algorithm is designed for solving the problem and a computational experiment illustrates how the proposed model works on this problem. the results show the effects of the proposed model and the algorithm. So, this proposed model can give some advise for the facility location decision response for large-scale emergencies.

Mixed Strategies for the Online Vehicle Routing Problem on a Special Road

MA Wei-min, DONG Dan-Dan, WANG Ke

2011, 20(5):  57-62. 

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This paper studies the vehicle routing problem with a series of unexpected congested nodes. First, an online model is formulated for the case that the congested nodes only occur on a special road. It is assumed that a congested node can only be known after the vehicle reaches it, and its recovery time is uncertain (i.e., the information about both the congested node and its recovery time is released in an online fashion). After that, two mixed strategies are proposed to address the problem. Furthermore, the competitive analysis of these two strategies and their competitive ratios are provided.

Fuzzy Dynamic LRP with Time Windows in Post-Earthquake Emergency Logistics Systems

WANG Shao-ren, MA Zu-jun

2011, 20(5):  63-72. 

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The multi-echelon Location-Routing Problem(LRP)in post-earthquake emergency logistics systems is studied. A fuzzy dynamic optimization model for LRP is developed by considering dynamic characteristics, timeliness, connectivity of road networks and uncertain demand in the system. Then the joint decision of locating distributing centers of relief commodities around the disaster area and relief distribution centers in the disaster area, as well as scheduling the routes of emergency vehicle in each period during relief process can be made. According to the characteristics of the model, an improved genetic algorithm(GA)based on dynamic programming is proposed. To overcome the premature problems of GA, stochastic selection, regrouped strategy and changing mutation probability are used, and a special real-valued coding scheme, punishment function method and demand split strategy are adopted to deal with restrictions in the model. Finally, the validity of the model and algorithm is demonstrated by a numerical example.

Ad Valorem Tax and the Cumulated Output of Exhaustible Resources——Based on the Modification of the Hotelling Model

XU Run-Fang, LIU Xin-Mei

2011, 20(5):  73-78. 

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It is very significant to enhance the cumulated output for solving the contravention between resource lack and resource low efficiency extraction. On the basis of increasing cost with cumulated output, which is a new assumption, the paper, after modifying the Hotelling model and using the optimal control method, researches the relation between ad valorem tax and cumulated output of exhaustible resources under monopoly. It is shown that the cumulated output of monopoly is lower than the cumulated output under perfect competition when the ad valorem tax rate equals zero. And the cumulated output of monopoly decreases further more when the ad valorem tax rate is more than zero. However, the cumulated output of monopoly increases when the ad valorem tax rate is less than zero.

Application Research

Combined Contract of Buy-back and Revenue Sharing with the Stochastic Demand Based on Trade Credit

MA Hui, YANG De-li, WANG Jian-jun

2011, 20(5):  79-85. 

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This paper considers a supply chain consisting of a supplier and a retailer. Because of the retailer’s funding constraints or risk aversion, the system cannot achieve the optimal order quantity, so it needs to take some measures to make the enterprises mutually cooperate to achieve coordination of the supply chain. Under a random demand and existing punishment of goods shortage, a model of entirely buy-back is designed to improve the order quantity of the retailer based on trade credit (i.e.suppliers allow retailers to delay payment of the loan). This model makes the supply chain system achieve the optimized profit. And the optimized order quantity and the wholesale price based on the contract is given. Furthermore, a revenue-sharing mechanism based on the model for distributing the profit and improving the operational performance of entire supply chain is analyzed. The parties of supply chain can achieve coordination through the given parameters.

Study on the Integrated Inventory Model With Controllable Lead Time Under Conditionally Permissible Delay in Payments

ZHAO Xiao-yu, JIA Tao, XU Yu

2011, 20(5):  86-93. 

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In an integrated decision making supply chain, the controllable lead time model is studied with the assumption that the lead time crashing cost is a power function of the lead time. A predetermined trade credit period is offered to the retailer by the manufacturer, with a partial payment required whenever the order is placing. Firstly, by establishing proper mathematical model, a proposition is proved to describe the optimal solution(production quantity, lead time and shipment times per production run from the manufacturer to the retailer)to minimize the total cost of supply chain without considering integer constraint of the decision variable. A solution procedure is provided, so that the decisions can be made easily. Secondly, an order-size-dependent trade credit model is presented, and a new algorithm is furnished to find the optimal decisions considering the properties of the model. Finally, numerical examples and sensitivity analysis are given to illustrate the solution procedures and management implications of the proposed model.

The Scientific Development Evaluation Model Based on Clustering and Its Empirical Study

CHI Guo-tai, CHENG Yan-qiu, CAO Yong

2011, 20(5):  94-102. 

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According to the connotation of Scientific Outlook on Development, this paper constructs the comprehensive evaluation index system for Prefecture-level cities from economy, environment, society, the All-Round Human Development and the technological development on the basis of the authoritative organization indices. It paper contrasts the evaluation model of scientific development concept based on clustering, and then the model is applied to prefecture-level cities of Liaoning province. The special and contribution of this paper lies in two aspects. Firstly, it determines the weight of indicator by comparing the result of clustering between the fact that there’s the indicator and the fact that the indicator is removed. The greater the impact on the results of the evaluation of indicators is,the bigger their weights should be. This changes the existing research in determining the weight of ignoring the impact of indicators on the results of evaluation. Secondly, the main indicators of scientific development are contribution rate of scientific and technological progress, park green area per capita, GDP million comprehensive energy consumption, the comprehensive utilization rate of industrial solid waste, green GDP per capita, Engel’s coefficient, ratio of industrial and agricultural output value, Gini coefficient, the proportion of financial expenditure and GDP, society as a whole labor productivity.

Identification of Regional Value-Chain Cluster Based on Input-Output Table: A Case Study of Shanghai

LU Rong, YU Li-ying

2011, 20(5):  103-112. 

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Analysis of regional value-chain cluster is one of the important analysis tools of regional economic innovation and competitive advantages. And the identification of regional value-chain cluster is the first step of it. To fulfill the goal of identifying core sector and its closely related ones which compose a regional value-chain cluster based on input-output network, a different identification method has been chosen in this paper with the combination of method of maxima and input-output analysis. According to the results of the case study, there are five regional value-chain clusters in Shanghai, whose core sectors are Manufacture of Communication Equipment, Computers and Other Electronic Equipment(A), Chemical Industries(B), Manufacture of General and Special Purpose Machinery(C), Smelting and Pressing of Metals(D)and Oil Processing, Coking and Nuclear Fuel Processing(E)respectively. The network created by inside and outside interaction among these five value-chain clusters largely covers the core composition of economic system in Shanghai. And the following economic and technological analysis indicates that the Value-Chain Cluster C is likely to be a new star surpassing the Cluster A in the background of vigorous development of advanced manufacturing in Shanghai.

The Research of Short-term Fleet Deployment Problem for the Car Rental Industry Based on the Particle Swarm Optimization Algorithm

LUO Li, ZHANG Jing-jing

2011, 20(5):  113-121. 

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How to allocate and schedule vehicles rationally is one of the main considerations for the operations management of car rental companies. Rational allocation and scheduling is also the effective way that can increase the car rental rates and profits. In this paper, with a view to the current key operation features of domestic car rental companies, for instance, lack of historical data, short lead time for booking, short rental term,and short distance between the stores, we consider the frequent and complicated short-term fleet deployment problem. We present the formulation of a random expectation model for single-day deployment problem, use a reasonable method for model decomposition, select the particle swarm algorithm to solve the sub-models, and demonstrate the feasibility and effectiveness of this approach by a numerical example. This approach can help the managers of car rental companies make the right decisions, improve customer satisfaction, and in the same time, increase rental rates and profits.

Operational Requirement Model of Weapon Equipment Based on State Space

ZHANG Qing-jie, WANG Shu-min, GUO Qiang, ZHAO Jin

2011, 20(5):  122-127. 

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The objective of this research work analyzes the operational requirements of weapon system. This is done by structuring the state space of quantity and tactical and technical characteristics(TTC)and the general operation process, describing operational requirements expression based on jump intensity and state probability, solving the problem of mapping rule between operational mission and weapon system.

A Research on Effectiveness of Foreign Exchange Intervention Based on Self-adapting Chaos Control

ZHANG Zai-mei, XIE Chi, SUN Bo, HAN Feng

2011, 20(5):  128-134. 

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The effectiveness of central bank foreign exchange intervention has always been considered as a controversial problem in financial area for many years. Although empirical literatures study a lot about it, there is still no consistent conclusion. So the further discussion in more scientific way is necessary and significant. Aiming at the problem, this paper proposes a new approach to solve it. Based on the expanded Dornbusch exchange rate model, this paper introduces self-adaptive chaos control method to guide the intervention policies, and tries to check if the intervention can control the chaos behavior of exchange rate, and stabilize it finally. Simulation results demonstrate that, through seeking the suitable intervention degree self-adaptively, the intervention policies can stabilize the exchange rate on its equilibrium level successfully. The results of our paper provide not only theoretical support for effectiveness of intervention, but also reference for intervention policies making.

Research on Quadratic Hedging Based on Dynamic Programming

GUO Jian-hua, XIAO Qing-xian

2011, 20(5):  135-142. 

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Under the constraint of self-financing, this paper assumes that the underlying price obeys a jump-diffusion process and studies the quadratic hedging for European style contingent claims. During the hedging horizon[0,T], by using dynamic programming method, we first get the explicit expression of hedging strategies, which can minimize the terminal risk. Then, by comparison of all hedging results under different settings, the dependent relationship between the hedging position and the hedging horizon, the direct proportion relationship between the hedging position and the underlying asset’s price ,the inverse proportion relationship between the hedging position and the exercise price are acquired.

Research on Managers’ Compensation Contract Based on Value Creation and Combination of Long-term and Short-term Performance

SUN Shi-min, WANG Ang, JIA Jian-feng

2011, 20(5):  143-150. 

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Nowadays, managers’ compensation contract mostly takes profit as performance measure standard and is designed according to short-term performance, which easily induces managers’ short-term behavior. This paper regards value creation as performance measure standard and integrates long-term and short-term performance into managers’ compensation contract. Its conclusion concludes three aspects: In the first, managers in monopoly industries make less effort than ones in competitive industries, and the greater the proportion of monopoly earnings is, the less effort managers make, so it is necessary to introduce competitive mechanism in monopoly industries in order to motivate managers’enthusiasm. Secondly, the bigger the proportion of surplus share is, the more effort managers make, and the higher per-unit effort cost is, the less effort managers choose. Higher capable managers usually select more effort,which means that managers should be selected carefully and given better working environment,and the proportion of surplus share should be designed freely in order to improve managers’effort. Thirdly, managers’ short-term behavior in competitive industries is more than that in monopoly industries, so it is wise to design managers’ compensation contract based value creation and combination of long-term and short-term performance.

On Design and Implementation of Management System of University Teachers’ Performance Related Pay

LENG Hui, LIU Xiao-feng

2011, 20(5):  151-155. 

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The design of management system of university teachers' performance related pay benefits from management science and information technology, and based on the university teachers' career and personnel management originating from effective management automation, information transparency, fairness and efficiency. The management system can automatically generate teacher performance allowance through several main function modules of the division and processes, the setting parameters of the system and the operation.The system will achieve the optimal allocation of limited resources and rational allocation of performance related pay, which can realize the complementary and harmonious win-win situation of teacher-to-university by motivating the teachers and staff members.

Management Science

A Two-Stage Semi-Supervised Weighted Naive Credal Classification Model

QI Rui-hua, YANG De-li , LI Hui-fen

2011, 20(5):  156-161. 

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Aiming at full use of implicit information in the incomplete data sets and reducing the high computational complexity of semi-supervised classification algorithms, this paper improves naöve credal classifier, and proposes a two-stage semi-supervised weighted naive credal classification model, in which the process of semi-supervised classification is divided into two stages. Simulation results of comparative experiment with TSVM verify that this classification model is efficient.

Single-item Dynamic Lot Sizing Problem with Remanufacturing and Outsourcing

WANG Neng-min, SUN Qin-ling, SUN Lin-yan

2011, 20(5):  162-168. 

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The paper addresses the single item dynamic lot sizing problem for systems with remanufacturing and outsourcing. The demand and return amounts are deterministic over the finite planning horizon. Demand may be satisfied by manufactured new items or remanufactured items or outsourcing, but it cannot be backlogged. The objective is to determine those lot sizes for manufacturing,remanufacturing and outsourcing that minimize the total cost composed of holding cost for returns and manufactured/remanufactured products, setup costs,and outsourcing cost. We prove several properties of an optimal solution and present exact polynomial time dynamic programming algorithm, which the complexity is O(T⁴).

Research on Stability of Knowledge Transfer in Virtual Technology Innovation Team ——Based on Evolutionary Game Visual Angle

ZHANG Bao-sheng, WANG Xiao-hong

2011, 20(5):  169-175. 

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For the reason that virtual technology innovation team(VTIT)is a knowledge-intensive organization with effective integration mechanism of dominant resources and innovative works, the key to its success is the effective transfer and continuous shift of knowledge. The paper uses evolutionary game theory to study the stability, continuity and evolutionary trends of knowledge transfer and knowledge sharing in VTIT. Putting emphasis on the main factors influencing knowledge transfer, such as transfer effect, cost and loss, system factors and so on, it takes knowledge transfer utility function as breakthrough point to analyze the conditions of knowledge transfer. Finally, some countermeasures and suggestions are given to improve the knowledge transfer in the VTIT.

Dynamic Evaluation on Multi-level System

DONG Jun, GUO Fang-yuan

2011, 20(5):  176-184. 

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This paper is to solve the dynamic evaluation problem on multi-level system. Firstly, it uses' infinite irrelevance methed to screen indicators to remove duplicate information. Then,it pretreats indicators through uniformization method and dimensionless method. Thirdly, “vertical and horizontal layer by layer” scatter degree method is used to calculate evaluation values of the evaluation objects at different time. Finally, TOWGA operator is used to aggregate evaluation values at different time. Thus, dynamic evaluation values of multi-level system are sorted. This method is very objective and suitable for dynamic evaluation on economic management system. The example of evaluating the benefit of power enterprises illustrates the practical value.

Research on Business Efficiency of China Retail Chain Enterprise Based on Data Envelopment Analysis

JIANG Xiang-yang, REN Pei-yu, LI Yun-yao, LIU Dao-bo, ZHANG Yong-pan

2011, 20(5):  185-192. 

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This paper analyses business efficiency for China retail chain listed companies in 2005~2008 using DEA method. The results show that total factor productivity of retail chain enterprise has changed greatly under the existing resources and technical conditions, mainly due to the technology progress, but not because of the enhancement of technical efficiency. mode of many enterprises' management is still relatively extensive, and management can not keep up with the pace of retail expansion. It is imperative to improve the quality of employees, reasonable allocation of resources and promote the management level for improving business efficiency of retail chain enterprise.

Stock Material Classification for Coal Mine Based on Multiple Criteria ABC Classification

YANG Juan, GUO Hai-xiang, YANG Wen-xia, ZHU Ke-jun

2011, 20(5):  193-199. 

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ABC classification based on only single measurement such as annual dollar usage easily ignores other criteria also recognized important in stock material classification. In this paper, multiple criteria ABC classification is applied to classify stock materials into different groups for zhengzhou materials supply and marketing company. Different classification results are presented respectively considering two criteria(monthly dollar usage and lead time), three criteria(monthly dollar usage, monthly average unit inventory cost or monthly average unit cost and lead time)and five criteria(monthly average usage amount, lead time, the number of suppliers, monthly average unit stock cost, monthly average sale cost). In addition, lead time is calculated respectively with its maximal, minimal, average. Compared with the local manager’s experience, the result proves that the matching effect is the best while using two criteria(monthly average dollar usage and lead time ) and lead time minimal to measure inventory material. The result may be applied to classify materials into different groups by adding the criteria according to the specific situation.

Contract Selection Model with Competing Retailers

SUN Rong-ting, SUN Lin-yan, LI Gang

2011, 20(5):  200-205. 

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Contracts used to coordinate supply chain with competing retailers were always too complex to apply in practice because of the high learning cost. This article studies the coordination problem of a supply chain consisted of one supplier and two competing retailers. A contract selection model which is different with others is built in this paper. The supplier offers an wholesale-price or quantity-discount contract to the retailers who could choose freely. This new contract could coordinate this supply chain and make the decentralized suppy chain’s profit equal to centralized case which could be testified through a numerical case.

Ripple Effect of Real Estate Sales Prices Volatility among Chinese Eastern, Central and Western Cities ——Taking Nine Cities on Behalf of China’s Eastern, Central and Western Cities for Example

HUANG Fei-xue

2011, 20(5):  206-215. 

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This study’s objective is to solve the problem of ripple effects of real estate sales prices volatility among Chinese Eastern, Central and Western Cities. Granger causality test, cointegration integration, and a two-stage procedure of non-parametric testing and business cycle dating techniques are applied to nine cities on behalf of China’s eastern, central and western month data from July, 2005 to March, 2010. Empirical results show that: (1)housing price fluctuations among nine Chinese cities do have ripple effect. We divide the cities into three layers: Shenzhen, Shanghai and Hangzhou of the east as the first layer; Wuhan, Hefei and Taiyuan of the center as the second; and Xi’an, Chengdu, and Lanzhou of the west as the third one. (2)The ripple effect is from eastern cities, then to central cities, and at last to western cities. Housing prices of eastern cities should be the main regulatory objects; (3)Central cities should be our concern and intense fluctuations of housing prices of western cities should be avoided. So, the government should make differential regulatory policies for cities in different layers, which is a more efficient way to control the whole system of housing prices.