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31 August 2011, Volume 14 Issue 4 Previous Issue    Next Issue

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general review

The Shifting Paradigm of Industrial Engineering in Taiwan Chien Chen-fu, Kuo Ren-tsun 2011, 14 (4):  1-10.  Abstract ( 3203 )   Save Industrial engineering (IE) has been a key facilitator in Taiwan’s industry productivity improvement and competitive advantage. However, business environment change has empowered IE to change its roles recently. In this paper, a framework of IEs paradigm shifting is presented, which explores its functions and its job scope changes in the enterprises as well. Moreover, three case studies are given to validate the framework. After all, we concluded that IE has been successfully shifting paradigm in Taiwan’s industry from productionoriented to businessoriented, and expand its business decision influence within their enterprises. References | Related Articles | Metrics

A Review of Technological Niche  Zhang Guang-yu, Zhang Yu-lei, Xie Wei-hong, Liu Yi-xin 2011, 14 (4):  11-16.  Abstract ( 3028 )   Save A literature review of research advancement in the field of technological niche is made in this paper. It presents the origin and definition, state of the art, and research trends. The advancement made by Chinese scholars is compared with that made by the foreign scholars. Generally speaking, the foreign scholars have done better than the domestic scholars. While commonly recognized theories are formed within the foreign research community, it is still at the concept exploration phase for the Chinese researchers. This implies that the research in this field is not sufficient explored in China. Thus, it is a meaningful research direction to deeply explore the technology innovation and sustainable development based on technological niche. References | Related Articles | Metrics

articles

Marketing Strategy Analysis of Newly Manufactured and Remanufactured Products in the Retailer Perspective Xiong Zhong-kai, Liu Yong, Wang Kai 2011, 14 (4):  17-22.  Abstract ( 3658 )   Save  For some products, there are both newly manufactured ones and remanufactured ones. Thus, a retailer should decide whether it should sell both types of products or just sell the newly manufactured ones. To answer this question, a Stackelberg game model is derived for it. By using this model, optimal pricing policy is analyzed for both marketing strategies. Comparison is made by using numerical simulation on the degree of consumer acceptance to the remanufactured products in considering the price, quality, and retailer’s equilibrium profit. It is shown that the retailer is more profitable under optimal pricing if it sells both types of products. References | Related Articles | Metrics

Cost Allocation of JointManaged Inventory Based on Cooperative Game and Data Envelopment Analysis Bao Xin-zhong, Liu Xiao-jun, Wang Ning 2011, 14 (4):  23-27.  Abstract ( 3135 )   Save  It is well-known that integrated supply (I/S) by thirdparty logistics is an effective way to reduce supplychain cost. For I/S, the key issue is how to allocate the joint inventory cost among the suppliers. In this paper, a study on this issue is conducted by using cooperative game theory and data envelopment analysis. Based on the analysis in considering the inputoutput contribution of each participator, a costallocation method is proposed such that the allocation is rational. An example is used to validate the results. References | Related Articles | Metrics

Pricing Model of Pollutant Emission for Small-and-Medium-Size Enterprises under Centralized Pollution Control Mode Cui Zhi-fang, Meng Wei-dong, Liu Jin-ping 2011, 14 (4):  28-32.  Abstract ( 3134 )   Save For a group of small-and-medium-size enterprises (SME), pollution can be controlled by the individual enterprises in an autonomous mode or by a specialized pollution control company in a centralized mode. The objective of this paper is to analyze the effectiveness of pollution control under the centralized mode. A game model is derived to describe the relationship between the SMEs and the pollution control company. Based on this model, the production output and profit for the SMEs, the profit for the pollution control company, and social welfare are analyzed for both pollution control modes. It is shown that, with the centralized mode, if marketoriented policy is applied the social welfare decreases and the centralized pollution control fails. However, with the centralized mode, the production output of SMEs and social welfare increase if there is government intervention by setting the upper bound of emission price. A method is presented for setting the upper bound of the emission price. References | Related Articles | Metrics

Effect of Consumer Behaviors on Word-of-Mouth Influence in Online Shopping Paradigm Sha Zhen-quan, Hu Bei-bin, Xie Xue-yin 2011, 14 (4):  33-38.  Abstract ( 3141 )   Save There is exponential growth of the cyber economy, and WordofMonth (WOM) has more and more effect on consumers purchase decisionmaking. As WOM is a consumerdominated information channel, both the propagators and receivers of WOM have nothing to do with the marketers. However, WOM has great influence on the consumer purchasing in the online shopping paradigm. In this paper, consumer behaviors, such as attitude towards complaining and internet business as well as perceived risks, are analyzed. Furthermore, the relationship between these factors and influence of WOM is analyzed by active seeking of WOM in the internet. It shows that the actively seeking of WOM is the key factor that contributes to the influence. References | Related Articles | Metrics

A Heuristic for Urban Goods Distribution under Time-Related Disturbance  Yang Wen-chao1,2, Wang Zheng3 2011, 14 (4):  39-45.  Abstract ( 3228 )   Save For urban goods distribution, there often exists delivery time uncertainty. It is a challenging issue to deal with such a timerelated disturbance. Aiming at minimizing the effect of such disturbance, this paper conducts a study on this issue. This problem is formulated into an integer programming model. Because of the combinatorial nature, then, a heuristic that based on human experience is presented. This algorithm is tested by using the benchmark problems in the literature and the results are compared with the existing algorithms. It is shown that the proposed algorithm outperforms the others in both performance and computational efficiency. References | Related Articles | Metrics

Coordination of 3-Tier Supply Chain of Fresh Agricultural Products under Linear Time-Varying Demands Lin Lue, Lei Xiao-yan, Dan Bin 2011, 14 (4):  46-51.  Abstract ( 3624 )   Save The supply chain considered in this paper is composed of a manufacture，a distributor, and a retailer for fresh agricultural products. For such products, the demands are timevarying. A mathematical model is developed to describe the coordination for such a supply chain. Based on this model, analysis shows that the supply chain can be coordinated by using time discounting contracts by properly regulating the contract parameters. Method is presented to determine the range of the contract parameters such that winwin can be realized. Besides, sensitivity analysis is conducted with respect to deterioration rate and demand variation, respectively. Results show that the retailer is able to extend the order cycle by improving inventory control. References | Related Articles | Metrics

ANP-Based Comprehensive Performance Evaluation of Logistics Service Process Liu Wei-hua, Zhou Li-zhen, Liu Chun-ling, Ge Mei-ying 2011, 14 (4):  52-57.  Abstract ( 3302 )   Save  In order to evaluate the performance of logistics service process, its characteristic is analyzed. Then, a comprehensive performance evaluation index system is proposed. There are three layers in the system: result layer, operation layer, and strategy layer. Thus, it has three indexes at the first level. These three indexes are divided into seven indexes at the second level, which are further divided into 30 indexes at the third level. With this index system, the analytic network process (ANP) method is applied for performance evaluation. Superdecision software package is used to perform the evaluation. It provides a quantitative performance evaluation method. An example is presented to show the application of the proposed approach. Results demonstrate that the application of ANP can improve the evaluation accuracy. References | Related Articles | Metrics

Integrated Pricing and Inventory Analysis in Dual Channel Supply Chain Wang Hong1, Zhou Jing2, Sun Yu-ling3 2011, 14 (4):  58-62.  Abstract ( 4067 )   Save A supply chain with both direct internet and traditional marketing channels is discussed in this paper. For the traditional marketing channel, it is assumed that the wholesale and retail prices are fixed. Also, for such a supply chain, demand uncertainty is considered. The objective is to optimize the price and inventory for the direct channel as well as the order quantity for the traditional channel. A mathematical model is developed for this problem. Based on this model, numerical analysis is carried out to reveal the mechanism of the supply chain. It is shown that an acceptable direct marketing price exists when the market share is in a certain range. When the direct price is not lower than the wholesale price, an equilibrium solution can be found even if the market share is smaller. In a certain market share range, the whole sale can be made unchanged by increasing inventory for the direct channel and reducing the order quantity for the traditional channel. In this way, the expected profit increases for the retailer, while, for the supplier, the expected profit decreases from the retail channel, increases from direct channel with the whole profit increased. Thus, it is beneficial to the whole supply chain. References | Related Articles | Metrics

Quality Penalty Strategy in Price-Dependent Supply Chain   Chen Jing-xian 2011, 14 (4):  63-67.  Abstract ( 3208 )   Save The supply chain considered in this paper is composed of a supplier and a manufacturer. The manufacturer can use a price-dependent penalty policy to the supplier if the supplier provides non-qualified products. Thus, in the supply chain the manufacturer acts as leader. In considering internal quality loss (IOL) and external quality loss (EQL) caused by defective raw materials, a Stackelberg game model is developed for this problem by using the leader-follower game approach. Based on the model, given the expected revenue function of supply chain stakeholders, the sub-game perfect Nash equilibrium is obtained. To evaluate the performance of the proposed approach, numerical examples are presented to test the penalty strategies applied to the four frequently incurred situations. The results indicate that the price-dependent quality penalty strategy can References | Related Articles | Metrics

Quality Control in Supply Chain with Imperfect Inspection and Customer Complaint Li Jin-fa 2011, 14 (4):  68-71.  Abstract ( 3670 )   Save When the final products get to customers, the quality is dependent on the production quality control at the supplier side and the inspection level at the distributor side. In this paper, a study of quality control in supply chain environment is conducted under imperfect inspection at the distributor side together with customer complaint. A game model is developed for this problem. Then, based on this model, equilibrium solution is obtained, which reflects the relationship between the solution properties and model parameters. Thus, by this model, it provides the interaction between the inspection level of the distributor and customer complaint when a mixed strategy is applied. With the solution obtained, quality control strategies in supply chain under different inspection level at the distributor side and customer complaint are proposed. References | Related Articles | Metrics

Vague SetBased Multi-Attribute Auction Decision Making in the State-Owned  Enterprise Mergence and Acquisition  Qin Quan-de, Wang Xiao-hui 2011, 14 (4):  72-77.  Abstract ( 2830 )   Save Auction is an effective way for enterprise mergence and acquisition (M&A). There are a number of serious problems in the stateowned enterprise mergence and acquisition (M&A). To solve these problems, the auction decision making for the stateowned enterprise mergence and acquisition (M&A) is discussed in this paper. After analyzing the cause of these problems, a set of attributes for auction decision making is constructed. Then, a general model for multiattribute auction decision making is proposed. In comparison with the existing models that are based on fuzzy sets, the proposed model is more flexible and practical by taking multiattributes into account. Based on this model, the control points are presented for the decision making process. References | Related Articles | Metrics

Solution Method of Multivariate Process Capability Indices Based on Rough Set and Quartile Method  Zhou Chi， Deng Fu-min 2011, 14 (4):  78-81.  Abstract ( 3092 )   Save The multivariate process capability indices (MPCI) are widely applied in product quality analysis. However, there is no efficient method for solving such a problem. By combining rough set and quartile method, a novel approach is proposed to solve this problem in this paper. A case study is presented and the results demonstrate the effectiveness of the proposed approach. References | Related Articles | Metrics

Incentive Policy Analysis for Intellectual Employees Based on Social Preference  Gan Wei-yu1， Xu Xi-xiong2， Yi Juan3 2011, 14 (4):  82-86.  Abstract ( 3526 )   Save In existing studies on incentive policies for intellectual employees, the economical incentive is emphasized but the employees' social preference is ignored. In this paper, incentive study for intellectual employees with their social preference considered. With the characteristics of the intellectual employees analyzed, the incentive policies are classified into three catalogues: economic, social preference, and auxiliary incentive policies. Based on this classification, the effect of social preference incentive policies on the output of the intellectual employees is analyzed. It shows that social preference incentive policies can greatly increase the enthusiasm of the intellectual employees. Thus, it is important to properly apply the social preference incentive policies. References | Related Articles | Metrics

Application of Blind Number Theory to Project Life Cycle Cost Estimation  Song Zhi-yong 2011, 14 (4):  87-91.  Abstract ( 2963 )   Save The accuracy of life cycle cost (LCC) estimation is crucial to the project investment decisionmaking. The blind number theory is applied to estimate the life cycle cost by presenting a highway construction project as a case study in this paper. Algorithms are presented for the cost estimation for a various of cost items. Results show that, by using the proposed method, high confidence level can be achieved for all the estimation items. The method can be implemented by software, which makes the computation efficient. References | Related Articles | Metrics

Multi-Attribute Credit Risk Evaluation Method for Financial Leasing over High Default Rate  Liu Wei，Zhai Wei-jing 2011, 14 (4):  92-97.  Abstract ( 3052 )   Save In considering high default rate in financial leasing, a multiattribute credit risk evaluation method is presented in this paper. This study is conducted with financial leasing for the construction machinery industry as a case. By analyzing the credit risk for this industry, an index system is developed, which contains both the financial indexes and nonfinancial indexes. Then, the risk evaluation is based on the experts’ scores on the given index set. With subjective preference of experts considered, a new method for multiattribute group decisionmaking is proposed to determine the attribute weights. Numerical results show that the feasibility and effectiveness of the proposed approach.   References | Related Articles | Metrics

Undertaking Strategy Analysis of Service Outsourcing Based on Price Signal Jiang Jun-min1， Yan Jing-dong1 ， Fan Ti-jun2 ， Li Dan-dan2 2011, 14 (4):  98-103.  Abstract ( 2934 )   Save Today, service outsourcing plays an important role in the service industry. Thus, increasing undertaking capability of service outsourcing is an important issue in China. The question is how a service outsourcing undertaker should do. To answer this question, a game model is developed for it. This model reveals the relation between relative information and undertaking environment. Based on the model, analysis is carried out. It shows that, to increase undertaking capability of service outsourcing, an enterprise should build and manage its information platform well. References | Related Articles | Metrics

Opinion Convergence Analysis of Interaction among Different Subgroups  in Dynamic Group Decision Making Yang Lei, Guo Min 2011, 14 (4):  104-109.  Abstract ( 3097 )   Save  According to sociological theory, in group decision making, subgroups and interaction among the subgroups widely exist. Members from different subgroups always exchange opinion and learn from each other, influencing the opinion evolution. This paper studies the impacts of interaction among subgroups on the opinion convergence and its stability in the dynamic group decisionmaking. The rules of opinion interaction among individuals within the same subgroup and between different subgroups are setup. Then, a model is presented to describe the dynamic opinion evolution in considering the interactions. With the model, simulation analysis is carried out. Results indicate that the interaction among subgroups promotes achievement of opinion consensus. The higher the mutual confidence level among the subgroups is, the faster the opinion converges, and the higher the stability is. Also, the larger the number of the pieces of opinions flows among the subgroups, the faster the decision making process converges. References | Related Articles | Metrics

Knowledge Compatibility Analysis of Knowledge Induction in Injection Mould Modification Chen Chen1, Chen Qing-xin 2， Mao Ning2, 2011, 14 (4):  110-113.  Abstract ( 3097 )   Save  As a kind of knowledge, a scheme of injection mould modification is represented hierarchically. Then, such knowledge is structuralized, which is shown to be information system homomorphism. Based on theories of information system homomorphism, the relation between feature reduction and information system homomorphism invariance is analyzed. Results show that feature reduction of the injection mould modification knowledge at different scheme levels is compatible with the feature decision tables. Thus, the structuralization of the injection mould modification knowledge is useful for knowledge representation and induction in mould modification. References | Related Articles | Metrics

S&T Resource Input-Output Effectiveness Analysis of Universities in Guangdong Province Li Li1, Sun Jian-qiang2 2011, 14 (4):  114-118.  Abstract ( 3891 )   Save Based on statistics data from 2000 to 2009, data envelopment analysis (DEA) is applied to analyze the science and technology (S & T) resource input-output effectiveness of universities in Guangdong Province. Results show that the overall effectiveness during 19992007 is satisfactory, while it is not good enough in the sense of DEA for some years. Also, the effectiveness for different indexes varies greatly with different trends. In general, the pure technology effectiveness is higher than that for the other indexes. Based on the analysis, it is found that inputoutput effectiveness can be improved by  increasing research funding. References | Related Articles | Metrics

practice & application

Ant Colony-Based Labor Allocation Method for Small-and-Medium-Size Manufacturing Workshops Zhang Bi-xi，Zhang Wan-li，Song Jing 2011, 14 (4):  119-123.  Abstract ( 2950 )   Save There are small-and-medium-size manufacturing workshops that are operated manually. The operations of such manufacturing workshops are characterized as frequent order insert, variety of product types, small batch, and varying batch size. To operate such workshops well, it is necessary to design the production lines by considering the labors’ capacity attributes. The swarm intelligence method is adopted to design the production lines and labor allocation for such systems. In considering the features of different production operations and the labors’ capacity attributes, a modified ant colony algorithm is proposed for the problem. Numerical results are presented to show the effectiveness of the proposed method. References | Related Articles | Metrics

Balance Analysis and Improvement of an LCD Shell Production Line Hou Lin-na1,2，Wang Hai-yan3，Jia Wei-wei2 2011, 14 (4):  124-128.  Abstract ( 3494 )   Save  In order to increase the productivity, balance analysis is carried out for an existing LCD shell production line in a company at Suzhou. By using process analysis, the 5W1H inquiry technology, ECRS methods, and other principles for production process optimization, the line is redesigned. To demonstrate the improvement made, simulation is made by using Flexsim simulation software. The results indicate that there is a significant improvement on work load balance for each station, waiting time, material delivery time and distance. References | Related Articles | Metrics

Heuristic for Two-Sided Stochastic Assembly Line Balancing Song Lin ，Zhang Ze-qiang，Cheng Wen-ming，Yu Qing-liang 2011, 14 (4):  129-134.  Abstract ( 3460 )   Save The two-sided stochastic assembly line balancing problem of Type I (TSALBP-I) with the uncertainty of task times considered is discussed in this paper. It is assumed that the task times are distributed according to normal distribution. Based on this assumption, a mathematical model is presented for the problem and then a heuristic algorithm is proposed. By this algorithm, in selecting and assigning tasks to workstations, it sets a higher priority to the task that has operation position constraint. Different solutions can be obtained by changing the pre-determined limit probability under different cycle time. The effectiveness of the proposed algorithm is demonstrated by numerical results for a set of benchmark problems. References | Related Articles | Metrics

Application of Systematic Layout Planning to Production Shop Design: A Case Study Xue Shun, Xu Zhi-pei, Hong Hao, Cui Ping, Liu Xiao-hui 2011, 14 (4):  135-138.  Abstract ( 4763 )   Save As a case study for building a production shop in a company, the systematic layout planning (SLP) method is used to design the shop. By analyzing both the material and non-material flow with necessary constraints and interactions taken into account, three candidate facility layout solutions are proposed. Then, the best one is selected by using analytic hierarchy process technique. It is shown that the result is satisfactory. References | Related Articles | Metrics

System Optimization of the Padlock Body Production Based on Value Stream Mapping Ni Ji-zi, Kan Shu-lin, Shen Jun 2011, 14 (4):  139-144.  Abstract ( 3488 )   Save Investigation is made to improve the process of the production line of a padlock body. With massive data collected, value stream mapping method is applied to analyze the process. Special attention is paid to reduce the wastes of overproductions and high level of inventory. Based on lean thinking, a future state value stream diagram is drawn. Then, the production process is redesigned such that the balance of the line, quality control, and production planning are improved. Furthermore, the operation of the production line and inventory are controlled by using KanbanSupermarketbased methods. Consequently, both product through time and WIP are reduced by 92.8%. References | Related Articles | Metrics

Knowledge Flow Analysis for Ignition Coil Production by Using Value Stream Mapping Wang Dao-ping1， Zhang Xue-long1,2， Huang Jia-yuan2 2011, 14 (4):  145-150.  Abstract ( 3255 )   Save It is known that there is significant profit gain if the production knowledge is well-managed. The objective of this paper is to analyze the knowledge flow for the production process of an ignition coil in a company. By using the value stream mapping technique, the current and future state diagrams of the knowledge flow are drawn, which reveal the existing flaws in knowledge management for the production process. Then, based on the knowledge flow analysis, the production process is redesigned such that the process is continuous and the level of knowledge coding is increased. Consequently, information barrage is eliminated, line balance is increased by 223%, and knowledge flow cycle is shortened by 20 days. This is a significant improvement. Although the analysis is done for a case problem, the method can be applied to other production processes. References | Related Articles | Metrics

On the Highway Station Location for Emergency Medical System Wang Guo-li1， Hu Dan-dan1,2， Yang Chao1 2011, 14 (4):  151-153.  Abstract ( 3497 )   Save Accidents on the highway happen from time to time and an emergency medical system for that is helpful. An emergency medical system contains a number of stations on the highway. A study of the highway station location problem for such a system is conducted in this paper. With uncertainty considered and αrobust constraints, a binary integer programming model is formulated for this problem by combining stochastic optimization with robust optimization. With this model, the αrobust constraints ensure that the relevant regret value of the number of accidents within the area covered by one individual medical station is no more than α in every single scenario. Thus, the expected response time can be minimized. A realworld case problem is used to demonstrate the effectiveness of the proposed method.   References | Related Articles | Metrics

Critical Operation Safety Factor Analysis for Third Party Logistics Li Jian-li1，2, Zhen Hong2, Xu Kai2 2011, 14 (4):  154-159.  Abstract ( 3203 )   Save  By analyzing the operations of third party logistics (3PL), an index system for operation safety evaluation is built. Then, based on the grey system theory, a comprehensive grey incidence degree model is developed. With this model, effect of 19 factors on safety of the five operations is analyzed. By this analysis, the correlation degree between various factors and the total failure rate is obtained. This clearly shows the critical factors that cause a failure for a single operation and for the five operations as whole. The proposed method is helpful in operating a third party logistics company.   References | Related Articles | Metrics

Airline Revenue Management with Strategic Passengers Peng Qing1, Li Hao2 2011, 14 (4):  160-165.  Abstract ( 3065 )   Save The airline dynamic pricing problem with a finite population of strategic passengers is discussed in this paper. When a ticket booking request is received by the airline, it needs to decide whether this request should be offered or not, and if so what is the price. A dynamic programming model is proposed for this problem to maximize the revenue. With the solution obtained by the model, properties and guidelines are discussed. Based on the analysis, optimal pricing policies are presented. Numerical experiments are given to show the application of the proposed approach. References | Related Articles | Metrics