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29 February 2012, Volume 15 Issue 1 Previous Issue    Next Issue

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CVaRBased Overbooking Strategy for Airlines Yu Hui, Chen Jingguang 2012, 15 (1):  1-7.  Abstract ( 2424 )   Save Ticket overbooking is an effective way of profit gain for airlines. However, it is also risky. Thus, tradeoff should be made to maximize the profit and, at the same time, minimize the risk. By taking riskaversion into account in ticket overbooking problem, a mathematical model based on conditional valueatrisk (CVaR) is established. With this model, the conditions are obtained, under which an optimal overbooking strategy can be found. Results show that the optimal overbooking level depends on the distribution of arrival rate and the risk aversion level of the decisionmaker. Also, the optimal overbooking level is affected by the ticket price and unit overbooking loss. References | Related Articles | Metrics

Multi-Agent Simulation of Enterprise Capability from the Routine Perspective  by Using Evolutionary Game Model DENG Xiu-Quan, BAI Bing, GAO De-Hua 2012, 15 (1):  8-13.  Abstract ( 2868 )   Save  From the routine perspective, the issue of enterprise capability evolution is discussed. This problem is described by an evolutionary model based on evolutionary game theory. With this model, a multiagent simulation system is developed based on the Swarm platform. By simulation, the capability evolution process of an enterprise is analyzed. Results show that enterprise capability evolution is a process of the enterprises learning and variation. While the process of adaptive routine learning is a gradual process of enterprise capability evolution, the process of routine variation is the mutant evolution of enterprise capability. References | Related Articles | Metrics

Warranty Cost Analysis for Product Family Based on Fault Tree Mapping Liu Yiliu, Liu Zixian 2012, 15 (1):  14-16.  Abstract ( 2350 )   Save Currently, product warranty cost is calculated based on individual products. However, today, warranty is always offered with respect to product family rather than individual products. Thus, new method is necessary for product warranty cost calculation. In this paper, the existing models for individual products are modified to adapt to product family. In the new model, module reliability is defined through the mapping from the fault tree model to the bill of material (BOM) model by using inverse search. The warranty cost calculation for laptop computer is used to show the application of the proposed method. The results are compared with the existing method such as free replacement warranty(FRW)and prorata warranty(PRW). It shows that the proposed method is effective. References | Related Articles | Metrics

Coordination Mechanism of Economic Lot and Delivery Scheduling Problem Li Zhengdao1，2, Zhou Hong1 2012, 15 (1):  18-22.  Abstract ( 2045 )   Save   Economic lot and delivery scheduling problem (ELDSP) is a typical research topic in the field of supply chain. Up to now, most research results obtained on this topic are based on centralized decision making. However, because of the autonomous nature of supply chain, it may not be always applicable. Thus, the ELDSP is studied by using decentralized decision making in this paper. A mathematical model is developed for this problem. Based on the model, it shows that an optimal solution cannot be obtained without coordination. Thus, the profit and cost sharing contract (PCS) is adopted for coordination. With PCS, the profit of the supply chain can be flexibly distributed between the vendor and buyer. In this way, an optimal solution for the ELDSP can be found if the profit and cost sharing contract is properly designed.   References | Related Articles | Metrics

A Bee Evolutionary Particle Swarm Optimization Algorithm for Vehicle Routing Problem Kou Mingshun， Ye Chunming， Chen Zihao 2012, 15 (1):  23-27.  Abstract ( 2335 )   Save The vehicle routing problem (VRP) is discussed in this paper. There are studies that solve VRP by using particle swarm optimization (PSO) algorithm. However, with traditional PSO, it has slow convergence rate and a local optimum may be obtained. In order to improve the performance of PSO, an algorithm called bee evolutionary particle swarm optimization(BEPSO) is presented for VRP in this paper. By this algorithm, the best particle regarded as the queen crosses with the selected drones randomly. In this way, it takes the advantage of the best individuals information. At the same time, some drones are randomly generated and crossed with the queen such that diversity is enlarged. Experimental test shows that the proposed algorithm has better global search ability than the existing ones. References | Related Articles | Metrics

A Study on the Scale Free Characteristics of Supply Chain Network Li Guang1,2, Zhao Daozhi1 2012, 15 (1):  28-32.  Abstract ( 2226 )   Save With the frequent adding and escaping of nodes in supply chain network being taken into account, the scalefree characteristics of such networks is studied. For this purpose, the BarabasiAlbert (BA) model is modified to describe the system. With the modified BA model, the probability distribution of an enterprise nodes link degree in the network is analyzed. Results indicate that only a minority of core firms can capture the great majority of links from other firms and the probability distribution of the link degree is inversely proportional to its link degree. Also, when the nodes of firms are synchronously increases and deleted, the link degree probability distribution of nodes in the supply chain network follows power distribution with parameterγ(1<γ≤2). The results are helpful for largescale enterprises in strategic management in the supply chain. References | Related Articles | Metrics

A Research on the Return Policy without Reason in Supply Chain Based on Consumer Status Quo Bias Jiang Hong, Qi Ershi, Yang Daojian, Huo Yanfang 2012, 15 (1):  33-38.  Abstract ( 2623 )   Save In this paper, the issue of the return policy without reason (RPWR) in a supply chain is discussed and, for the first time, consumer status quo bias is taken into account. The supply chain concerned is composed of a manufacturer and a retailer and there is a contract of buyback or salesrebate between the manufacture and the retailer. The objective is to pursue an optimal RPWR for both the supply chain and its members. A mathematical model is developed for the problem. With the model, the optimal refund for both the supply chain and the retailer under different contracts is found.  Also, the double marginal utility between the retailer and supply chain is analyzed. It is found that contradictory phenomena in some contracts can be eliminated by adjusting the contractual parameters so as to coordinate the supply chain. References | Related Articles | Metrics

SPSSbased Research on Adaptive Supply Chain Configuration Huang Hui, Liang Gongqian 2012, 15 (1):  39-43.  Abstract ( 2051 )   Save To adapt to the market changes, a supply chain should be reconfigured from time to time. The supply chain configuration is discussed in this paper and the study is conducted based on the simplified twotier supply chain. By using SPSS Clementine software, a data flow model is built for the adaptive supply chain configuration (ASCC). By using data that include information of purchase quantity, lead time, and price of order as input of the model for training, a rule set for best supplier selection can be obtained. The ASCC model is evaluated by using gains chart and lift chart, result shows that the model is effective. A set of virtual order data is used to test the ASCC model. After training, a supplier is selected with a satisfactory confidence level. References | Related Articles | Metrics

Game Analysis on Three-Level Supply Chain for Export Cargo Lin Lue, Xu Maomao, Yang Shuping 2012, 15 (1):  44-49.  Abstract ( 1986 )   Save  A threelevel supply chain composed of a domestic producer, a domestic distributor, and a foreign retailer for export cargo model is studied. The study is done for two cases: 1) it is in a bonded port area; and 2) it is in a nonbonded port area. For both cases, optimal supply chain profit is quantitatively analyzed by using backward induction of game theory. The results obtained for the two cases then are compared. It is shown that a winwin result can be obtained for all three parts if it is in a bonded port area. In other words, for this case, in the foreign consumer part, welfare increases, while, in the domestic part, it increases the unit tax rebate for the supplier and the unit value benefit for the distributor. It implies that there is profit gain for all parts. References | Related Articles | Metrics

The Selection of Reverse Logistics Modes for Used Cell Phone Products Hou Dongliang，Nie Jinquan，Zou Lülong 2012, 15 (1):  50-54.  Abstract ( 2490 )   Save The problem of how to select a reverse logistics mode for the recycling of the used cell phones is addressed in this study. A model based on analytic network process (ANP) is proposed for the investigation. To carry out the investigation, questionnaires with questions about the recycling of the used cell phones are sent to middle and higher management staff. Then, the data obtained from the returned questionnaires are assessed by using Delphi method. The feasibility and effectiveness of the proposed method are validated by simulation on the Super Decisions platform. The results show that outsourcing mode takes up to 439 percent of the recycling, joint business mode 319 percent, and self-supporting mode 242 percent. Therefore, among the three reverse logistics modes, the outsourcing mode is the best. References | Related Articles | Metrics

Empirical Analysis of Relationship between Economic Growth and Industrial Pollution 2012, 15 (1):  55-59.  Abstract ( 2252 )   Save  In general, economic growth may result in different degree of environmental pollution. Thus, it gives rise to a question: whether rapidly economic growth will certainly create severe pollution? Investigation is carried out to answer this question in this paper. With the data collected in Henan Province from 1986 to 2009, the investigation is done as follows. The correlation is verified by cointegration analysis such that correct results can be obtained. Then, generalized impulse response function (GIRF) and variance method are used to analyze the longterm dynamic mechanism between economic growth and industrial pollution. The result indicates that the rapidly economic growth can result in increasingly pollution, while pollution can hinder, with some lag, economic growth. Furthermore, economic growth in the early stage can aggravate the industrial pollution, which will severely hinder the economic growth in return. Based on the results, suggestions are given for coordination between the economy development and the environment protection. References | Related Articles | Metrics

An Empirical Research on the Relationship between Regional Logistics and Regional Economic Growth in Guangdong Province Gao Xiuli1,2，Wang Aihu1, Fang Xingchao1 2012, 15 (1):  60-65.  Abstract ( 2835 )   Save  The relationship between the regional logistics and regional economic growth in Guangdong Province is analyzed based on the annual data from 1978 to 2009. Three indices that have significant effect on the regional logistics development are chosen in the analysis. After the VAR (vector autoregression) model is developed for the problem, impulse response function is applied to analyze the interactive relationship between economic growth and logistics development. Then, cointegration and Granger causality tests are conducted to analyze the longterm relationship and the causal relationship between them. Results show that there is a longterm cointegration relationship between them. In the long run, the logistics industry promotes the economic growth. However, while the economic growth has boosting effect on the regional logistics, the regional logistics has no significant effect on the regional economic growth. The reason is that the logistics industry here is still in the early stage. Finally, suggestions on logistics industry development in Guangdong Province are given. References | Related Articles | Metrics

Time Series Method Based Forecast of Supply and Demands of Refined Oil Zhu Yuming1, Chen Wei1,2, Liu Pinli3 2012, 15 (1):  66-70.  Abstract ( 2539 )   Save   In order to make a scientific energy strategic decision, it is vitally important to accurately forecast the energy supply and demands. In this paper, time series methods are applied to forecast the supply and demands of refined oil for a province in China. The study is conducted by using data of petroleum supply and demands collected in the Province during the last 10 years. With the data, statistical error is analyzed and related statistics test is conducted by using Crystal Ball prediction software. Then, four time series methods are applied to forecast the demands for the next five years. By comparison, it shows that the result obtained by using double exponential smoothing is the best. The result is meaningful for the sustainable development of the Province. References | Related Articles | Metrics

A Research on Optimal Path of Renewable Energy Price with Maximum Social Welfare Wang Jian, Lu Zhengnan 2012, 15 (1):  71-75.  Abstract ( 2282 )   Save   Based on optimal control theory, a model is developed to describe the discounted consumption of renewable energy resources for the goal of maximizing the social welfare. With this model, by converting the truncated vertical line problem into a terminal node problem, the regeneration rate of renewable energy resources is obtained. Also, the effect of discount rate on the optimal price path is analyzed. It has the following findings:1) stronger renewable energy resources can withstand constantly sustained exploitation, and can ensure a nonnegative reserve at a fixed end time; 2) when the social discount rate is equal to the regeneration rate, the renewable energy resources keep in a constant if the optimal price path is adopted; 3) when the social discount rate is twice as much as the regeneration rate, the optimal price path increases exponentially and the growth rate is equal to the regeneration rate; and 4) in the general cases, the growth of optimal price path is exponential with the difference between the optimal price path discount rate and the regeneration rate being the growth rate.   References | Related Articles | Metrics

Retailer's Optimal Inventory Policy under Two-Level-Trade-Credit and Price-discount Li Zuoping, Yang Aifeng 2012, 15 (1):  76-81.  Abstract ( 2229 )   Save  The retailer's inventory policy in a supply chain environment under two'level-trade-credit and price-discount is addressed. It is assumed that the retailer has the power to make decision in the whole supply chain. In other words, the retailer can obtain the trade credit and corresponding price-discount offered by the supplier, while the retailer just offers the trade credit to its customers. An economic order quality (EOQ) model is developed to maximize the retailer's profit. Based on the model, the retailer's optimal inventory policy is determined. Moreover, a simple but efficient algorithm is presented such that it is applicable to practical applications. Finally, a numerical example is given to validate the results obtained and show the application of the proposed method. References | Related Articles | Metrics

practice & application

Analysis of Profit Gained from Inventory Impawn Financing Based on D-S Theory Yan Ying1, Ye Huaizhen1, Suo Bin2 2012, 15 (1):  82-86.  Abstract ( 2339 )   Save In inventory impawn financing services, when impawn financing is adopted by a firm, some factors, such as ordering cycle and price, are difficult to be predicted exactly. Thus, it is unable to evaluate the profit gained by the firm. To solve this problem, based on the DempsterShafer (DS) evidence theory, a quantitative analysis method is proposed. By this method, complementary cumulative belief and plausibility functions are constructed, respectively. Then, with evidence inference, the pessimistic and optimistic estimations of profit distribution are obtained for the firm who adopts inventory impawn financing. In this way, the mean value can be used as approximate profit. With a case problem, simulation is carried out to validate the proposed method. Results indicate that the proposed method is more objective than the traditionally probabilitybased method, and can get more information than methods that use interval analysis. The new method can provide evidences for decisionmakers who are either riskaverse or riskhappy.   References | Related Articles | Metrics

articles

TotalFactor Energy Efficiency Analysis of Hebei Province Based on SuperEfficiencyDEA Li Jinying, Cheng Yunxue 2012, 15 (1):  87-92.  Abstract ( 2405 )   Save  Data envelopment analysis，which grows from the concept of relative efficiency evaluation, is an effective method to evaluate decision making units with same kind of input and output. With the data set collected from 1998 to 2008, the total factors energy efficiency of Hebei Province is analyzed by using the superefficiencyDEA model extended from C2R model. In the analysis, energy consumption, labor force and capital stock are the input indexes, while GDP is the output index. Based on an empirical analysis, it is shown that although there is significant improvement in energy efficiency during 1998 to 2008, there is large distance to the expected goal. Based on the results, some suggestions are proposed to increase energy efficiency of Hebei Province.   References | Related Articles | Metrics

Credit Evaluation for SmallandMediumSized Enterprises Based on Fuzzy SVM with Dual Membership Values Song Xiaodong, Han Liyan 2012, 15 (1):  93-98.  Abstract ( 2757 )   Save  A new fuzzy support vector machine (SVM) model with dual membership values, called DFSVM in short, is developed for the credit evaluation of smallandmediumsized enterprises. In this model, each sample belongs to two credit classes according to its dual membership values. The optimal input indicator portfolios are determined by using the attribute reduction method in rough set theory. With banks credit risk aversions taken into account, samples in the two classes are handled asymmetrically in the training process. Empirical results show that the discrimination accuracy of the proposed DFSVM model is superior to the traditional discrimination models. Furthermore, an adjusted model is proposed, test shows that the adjusted DFSVM model can further reduce the banks credit risk. References | Related Articles | Metrics

An Empirical Study on the Evaluation Index System for Enterprise Two Capacity Integration Wang Na， Li Gang 2012, 15 (1):  99-104.  Abstract ( 2351 )   Save For the sustainable improvement in enterprise twocapacity integration, it needs to effectively evaluate the performance of enterprise twocapacity integration. For this purpose, a threelevel evaluation index system is developed. In this system, the core indices include ready degrees/foundation, maturity/application, and contribution/performance. To evaluate the performance, expert evaluation method, advanced screening method, the analytic hierarchy process (AHP), and clustering analysis method are integrated for analysis. As a case study, the proposed system is applied to evaluate the performance of enterprise twocapacity integration in a city. Result demonstrates that the enterprise twocapacity integration can act as guide of sustainable construction of enterprises and prevent blind construction. References | Related Articles | Metrics

On the Relationship between Depression and Characteristics of Online Game and Activity Repetition Qin Hua1, Chen Baojiang1, Niu Jianwei2 2012, 15 (1):  105-108.  Abstract ( 1942 )   Save The objective of this research is to investigate and explore the relationship between depression of network game players, and the characteristics of online games and the playing times. The investigation is carried out by using questionnaires. In a questionnaire, it contains questions about demographic information, characteristics of online games, and depression instrument. Questionnaires are sent to 160 college students in Beijing and 100 valid ones are returned. By analysis, it is strongly shown that the players depression has linear relationship with six dimensions of online games characteristics. They are friendship, team work, background stories, levels, rewards, and roles. Among them, rewards, levels, and team work contribute more than the others to depression. It also shows that depression has linear relationship with activity repetition.   References | Related Articles | Metrics

practice & application

WitnessBased Simulation and Optimization of Production Lines in a Manufacturing Plant Liu Lizhuo Wang Dan 2012, 15 (1):  109-114.  Abstract ( 2160 )   Save  As a case study, this paper addresses the redesign of a pillar manufacturing production line in a plant. By using the theories of constraints（TOC）and drumbufferrope (DBR) method, a simulation system is developed for the production line based on Witness software. Then, by simulation, the factors that affect the performance of the line are analyzed. In this way, the line is redesigned and reconfigured such that the material handling process is optimized, machine utilization is improved, and production efficiency is increased. Consequently, the productivity of the line is increased by 497% without additional equipment investment.     References | Related Articles | Metrics

A Research on WIP Reduction for a Production Line of Optical Communication Components Li Xuemin1，Tian Qing2，Zhang Ziyu1 2012, 15 (1):  115-119.  Abstract ( 2350 )   Save  To reduce the cost, it is necessary to minimize the work in process (WIP) in a production line. In this paper, a case study is conducted on how to determine the WIP for an optical communication component production line. The problem is modeled by queuing models ［M/M/s］∶［∞/∞/FCFS］ and ［M/M/s］:［N/∞/FCFS］. Based on the models, analysis is carried out to optimize the WIP. Based on the analysis results, redesign is made and implemented to improve the performance of the production line. Consequently, both the WIP and production lead time are reduced by 50%. This is a significant improvement. References | Related Articles | Metrics

Scheduling of Flexible Flow Shop for Mold Manufacturing with Processing Time Uncertainty Lin Hanhua1, Chen Xindu1, Wu Lihua1, Li Liming2 2012, 15 (1):  120-124.  Abstract ( 2441 )   Save  Mold manufacturing is a nonrepeated process, but it is of single order production. For such processes, part processing time uncertainty is the main characteristics. Thus, in mold manufacturing, the operation may enter a chaotic state due to bad scheduling. In order to obtain a reasonable and feasible production schedule under processing time uncertainty, a discrete probability model is developed for a flexible mold manufacturing flow shop.  Then, a scheduling model is presented for minimizing the expectation of makespan. The problem is solved by a hybrid genetic algorithm which integrates simulated annealing algorithm into the crossover and mutation operations. The proposed method is tested by using practical cases and results show that it is effective.   References | Related Articles | Metrics

Layout Design in Cellular Manufacturing Based on Improved Particle Swarm Optimization Zhang Yongqian, Ding Kuixue 2012, 15 (1):  125-130.  Abstract ( 2230 )   Save   Traditionally, the intracell and intercell layout problems in layout design of cellular manufacturing systems are solved separately, which may result in a local optimal solution. In order to avoid the local optimal solution, these two problems are solved concurrently in this paper. This problem is formulated as an integer programming with multiple objectives. In the model, the orientation of the facilities, the intracell and intercell layout are described simultaneously. Due to the complexity of the model, an improved particle swarm optimization (PSO) algorithm is proposed. To improve its performance, the PSO algorithm is modified by adopting the crossover operator used in genetic algorithm. A simulation experiment verifies the validity of the proposed method.    References | Related Articles | Metrics

general review

Research Progress in Extension Innovation Method and its Applications Yang Chunyan1, Li Xingsen2 2012, 15 (1):  131-137.  Abstract ( 2178 )   Save   In this paper, by compared with the TRIZ, it shows that the extension innovation method has advantage in both universality and operability. After the systematic methodology and basic characteristics of extension innovation methods are introduced, the progress made in both research and applications is reviewed. Then, it is pointed out that, with further improvement, the extension innovation methods can provide operable methods for innovative activities of all fields. Thus, the extension innovation methods have its practical value for the formal and quantitative research in technical innovation and invention. References | Related Articles | Metrics