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31 December 2012, Volume 15 Issue 6 Previous Issue    Next Issue

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practice & application

Simulation Research on Final Inspection Process in Auto Window Lifter Production Line Kong Fan-sen, Lu Jun-rui, Jian Zhen-hao， Shan Hong-ying 2012, 15 (6):  1-7.  Abstract ( 2304 )   Save An investigation on the window lifter production line of an auto electronic factory shows that the final inspection process is the bottleneck of the production line. The cause is that it takes too long time for the EOL testing instrument to perform inspection. In this paper, the final inspection process is treated as a twostage serial system with a single queue, single machine set, and work piece arriving in batches. Hereby, activity cycle diagram is applied to establish the corresponding production system model. Based on the model, simulation is carried out to analyze performance indexes, such as circle time, changes of work in process, EOL waiting time, and MC and EOL equipment utility rate. Then, improvement solution is presented. By doing so, the circle time is shortened from 10.4 s to 9.4 s, and EOL equipment utilization rate is increased from 88.6% to 90.1%. References | Related Articles | Metrics

Schedulability Analysis for Short-Term Scheduling of Crude Oil Operations by Using a Petri Net Model Ding Cheng-jie, Wu Nai-qi, Bai Li-ping 2012, 15 (6):  8-14.  Abstract ( 2289 )   Save Because of the complexity of short-term scheduling problem for crude oil operations in a refinery, the existing mathematical programming-based approaches often ignore some constraints in modeling the system, leading to an infeasible solution. To avoid this, the shortterm scheduling problem is studied in a control theory perspective in this paper. With this idea, a hybrid Petri net model is developed for it. Based on the model, schedulability for systems with multiple distillers is analyzed and the schedulability conditions are presented, which reveals the relationship of the number of charging tanks and their capacity, the amount of crude oil of different types in the charging tanks at the initial state, and the oil transportation rate of the pipeline. The results are verified by a practical industrial case. References | Related Articles | Metrics

Application of Bayesian Method with Bootstrap Resampling to Failure Rate Estimation of White Auto Body Wang Hai-yan1, Hou Lin-na2 2012, 15 (6):  15-19.  Abstract ( 2111 )   Save The manufacturing accuracy of white auto body takes an important part in quality control of the whole auto manufacturing. In the white auto body manufacturing process, only small number of inspection samples can be obtained. Hence, quality control methods that require large number of samples are not applicable. To solve this problem, Bayesian method combined with Bootstrap resampling technique is adopted. After defining the failure rate of white body size, for comparison, simple calculation analysis, sliding calculation analysis, and Bayesian method based on β distribution are used to analyze the failure rate, respectively. Then, Bayesian method combined with Bootstrap resampling technique is applied to estimate the failure rate. Simulation based on Matlab is used to compare the four methods. Result shows that Bootstrap resampling Bayesian method outperforms the others and it can be applied to estimate the failure rate with small number of samples. An example is given to show how the application of the proposed method. References | Related Articles | Metrics

Research on the Necessity of Setting Waiting Room in Restaurant Queue Management Han Ya-juan, Xie Hui 2012, 15 (6):  20-24.  Abstract ( 2097 )   Save To improve restaurant service quality and increase revenue, the issue of restaurant queue management is discussed in an integrated perspective of both capacity management and the psychology of waiting in line. Two cases are considered: 1) there is no waiting room, leading to loss of customers; and 2) there is a waiting room, but some customers may renege because of the waiting time. With customer perception in waiting considered, queuing theory models are developed for both cases. To maximize profit, revenue functions for the models are derived. Then, simulation analysis is done by using Matlab. It shows that there is a strategy of setting waiting room such that maximum profit can be achieved, which indicates that the traditional view of conflict between service quality and cost can be overcome by integrating perspective from both customers and the company. In addition, the number of dinner tables is negatively related to the reneging parameter, whereas the number of waiting tables is positively related to the reneging parameter. References | Related Articles | Metrics

Self-Organization Evolution Model and Simulation of Virtual Manufacturing Resource Selection Ding Rong， Sun Yan-ming 2012, 15 (6):  25-31.  Abstract ( 1889 )   Save Virtual manufacturing resource selection can be seen as a selforganization evolution process of a complex adaptive system. With this viewpoint, the selforganization evolution process is reflected by the interactions between resource agents and the task agents, and between these agents and the environment. Aiming at obtaining a most satisfactory solution from the resource selection route set, a selforganization evolution model is constructed. Based on the model, information interaction mechanism between agents is designed. Then, by using Swarm platform, simulation is carried out with evolutionary genetic algorithm embedded. In this way, an optimal solution can be obtained. An example is used to test the feasibility and validity of the proposed method. Results show that the solution obtained is very useful for decisionmaker so as to make a quick and good selection of virtual manufacturing resource. References | Related Articles | Metrics

An EOQ Model of Price Increasing and Two-Level Stock-Dependent Selling Rate Luo Bing, Wang Jing-jing, Pan Xin-he 2012, 15 (6):  32-36.  Abstract ( 1960 )   Save Based on the purchase price increasing exponentially with time and twolevel stockdependent selling rate, an EOQ model is generated. The influence on ordering strategy is analyzed when agricultural and food prices increase greatly by actual survey data. The sensitivity analysis shows that the initial purchase price and purchase price factor have greater impact on ordering strategy and inventory cost than the others, while stockdependent selling rate factor and stockdependent selling point have certain influence on ordering strategy and inventory cost. References | Related Articles | Metrics

A Study on Dynamic Efficiency of China National Software Development Bases Wu Wen-qing, Zhao Li-ming 2012, 15 (6):  37-43.  Abstract ( 2328 )   Save In order to optimize software development environment and improve the quality and level of the software industry in China, it is very important to evaluate the dynamic efficiency and its impact factors. With the data from 32 China national software development bases, such a study is conducted by using Data Envelopment Analysis (DEA). Efficiency variation is assessed by Malmquist Productivity Index. It shows that although the production efficiency of China national software development bases is gradually enhancing, its efficiency is still rather low and, especially, resource efficiency is to be improved. Also, it is found that the impact of financial crisis is very little and technological progress is the key to its productivity. In terms of physiographic region efficiency, there is no difference between eastern and middle-western regions. The efficiency is also independent of the time when a base was established. References | Related Articles | Metrics

Manufacturer's Sales Channel Selection for Extended Warranty  Based on the Influence of Service Level Zhang Xu-mei1,2， Liu Xiang-yu1,2， Fu Hong-yong1,2 2012, 15 (6):  44-49.  Abstract ( 2097 )   Save A demand function for extended warranty is constructed based on consumers risk aversion level. Then, by using Stackelberg game analysis, manufacturers profit models under both direct and retail channels are built. In considering double marginal and complementary effect, the impact of extended warranty service level on manufacturers profit is analyzed by combining numerical examples. Results show that the impact of service level on manufacturers profit for both channels is consistent with the diminishing marginal utility. Due to the combination of complementary effect and double marginal effect, service level has different effect on manufacturers channel selection for extended warranty at different level. The optimal choice for manufacturers is to sell extended warranty through retail channel when service level is low, and to sell it through direct channel when service level is high. References | Related Articles | Metrics

Decision-Making and Coordination of Supply Chain with Loss-Aversion under Asymmetric Information Wang Yong, Zhu Long-tao 2012, 15 (6):  50-56.  Abstract ( 2311 )   Save A supply chain composed of a risk-neutral supplier and a loss-averse retailer is discussed in this paper. For such a supply chain, market demands are uncertain and it is assumed that the information of agents'attitude towards to the risks is asymmetric. Stackelberg game is used to analyze the agents'behavior under decentralized decisionmaking, while revenue-sharing contract is designed to coordinate the supply chain under centralized decision-making. Then, analysis is done and results show that, under decentralized decision-making, the asymmetric information of agents'attitude towards to the risks results in further efficiency loss of the supply chain with respect to “double marginal effect”. However, revenue sharing contract can eliminate the influence of asymmetric information so as to improve the loss-averse retailer's optimal ordering quantity. A numeral study shows that information sharing can obviously increase the agents'expected utilities in the supply chain. References | Related Articles | Metrics

Dual-Channel Strategies for Retailers with Price and Service Competition Zhang Pan, Xiong Zhong-kai, Guo Nian 2012, 15 (6):  57-62.  Abstract ( 1963 )   Save The issue of retailers'dual-channel strategies with price and service competition is discussed. In a duopoly market environment, a Hotelling model is presented for this problem. Then, the equilibrium solutions of prices and service level are obtained. Based on the solutions, impact of additional Internet channel on prices, service level, and profits is examined. Furthermore, in considering the behavior of information-based free-riding, it analyzes whether retailers can open direct channel. Result shows that when the differentiation among the competing retailers is not too large, an online channel can result in increase of service level and decrease of profit. Furthermore, in considering information-based free-riding behavior, any of the three channel strategies, i.e. no Internet channel, asymmetric Internet channel, and symmetric Internet channel, is the possible equilibria. Also, multichannel retailing for all retailers is a prisoner’s dilemma. References | Related Articles | Metrics

Coordination of Closed-Loop Remanufacturing Supply Chain with Stochastic and Flexible Demands Huang Yong1, Sun Hao2, Da Qing-li1 2012, 15 (6):  63-69.  Abstract ( 2329 )   Save In this paper, a closedloop remanufacturing supply chain with pricesensitive stochastic demands is addressed. Such a supply chain can be operated under centralized decisionmaking mode with the manufacturer as Stackelberg leader and three decentralized usedproduct collection modes: manufacturer, retailer, and thirdparty collection. For such a supply chain, pricing policy and profit are analyzed under centralized and decentralized modes, respectively. Under centralized decisionmaking mode, a firstorder necessary condition for coordinating the supply chain is derived. Then, it is shown that, under decentralized decisionmaking mode, the supply chain can be perfectly coordinated by using a compound contract with total return policy, and sale rebate and penalty. In this way, winwin can be achieved. By comparison, it also shows that thirdparty collection cant be chosen by the manufacturer. Coordination sufficiency and efficiency are also analyzed. A numerical example is given to verify the proposed method. References | Related Articles | Metrics

Research on Closed-Loop Remanufacturing Supply Chain with Third-Party Collection and Government Subsidies Xin Guang-qian1, Shi Cheng-dong1 , Xie Yun2 , Yan Hou-qiang2 , Lu Hong-bin2 2012, 15 (6):  70-75.  Abstract ( 3832 )   Save By taking government subsidy as an incentive function into account, a closedloop remanufacturing supply chain with thirdparty collection is addressed in this paper. A game model is presented to describe the operation of the supply chain. With this model, operational law of the supply chain and the effect of government subsidy are analyzed. It is found that, in the case of noncooperative game, the supply chain system cannot be optimally operated. However, with cooperative game model, perfect coordination of the supply chain can be achieved by using revenue and costsharing contract. A numerical example is used to verify its theoretical correctness and validity of contract design. References | Related Articles | Metrics

Differential Pricing and Coordination of Closed-Loop Supply  Chain under Patent Protection Shen Cheng-ran, Xiong Zhong-kai，Yan Wei 2012, 15 (6):  76-81.  Abstract ( 2174 )   Save A special closed-loop supply chain is discussed. In such a supply chain, under patent perfect market, retailers’ remanufacturing of patented products is authorized by the original manufacturer. For the case that difference exists between the new products and remanufactured products, game theory models are developed under both decentralized and centralized decision-making modes. With the models, manufacturer’s optimal wholesale price and patent licensing fee, retailer’s price difference between new and remanufactured products, and their profits are then found for both decision-making modes. Impacts of different parameter changes on pricing, patent licensing fee, and profits are also analyzed. It shows that system profit under decentralized decision-making is less than that under centralized decision-making. Therefore, a revenue sharing contract is presented to coordinate the supply chain. References | Related Articles | Metrics

Order Assignment in Global Supply Chain with Fuzzy Random Demands Ge Na, Wang Chuan-xu 2012, 15 (6):  80-88.  Abstract ( 2194 )   Save A global supply chain composed of suppliers, third party logistics service suppliers, and buyers with fuzzy random demands is addressed in this paper. Aiming at total profit maximization for the supply chain, with tariffs and exchange rate considered, a fuzzy random optimization model for order assignment problem is proposed. The model is solved by transforming it into a single objective optimization model for maximizing satisfaction degree. The profit for individual parties is allocated by using Shapely method. A numerical example is used to demonstrate the effectiveness of the model by comparison. It shows that, by maximizing the total profit of supply chain, the total profit can increase by at least 3.47% than that by maximizing the profit of one part or two parts. References | Related Articles | Metrics

Research on Evolution of Decentralized and Centralized Supply Chains Zhang Zhi-yong， Li Hua-juan, Shi Yuan 2012, 15 (6):  89-94.  Abstract ( 3543 )   Save The distribution proportion of decentralized and centralized supply chains indicates the maturity of supply chain development. As it is well-known, decentralized and centralized decision-making modes are common in the supply chain game. Decision makers often adjust their decision-making process to the development for themselves day by day according to the changing market. In this paper, a study is conducted for a two-level supply chains composed of manufacturers and retailers. A payoff matrix in the game between the manufacturers and the retailers are constructed. With relevant parameters and numerical examples, evolutionary stable strategies are analyzed by using a Jacobi matrix. The effects of the parameter changes on the evolutionary direction between decentralized and centralized supply chains are discussed in detail. Results show that decision-making results are significantly influenced by parameters such as profits and costs in the supply chains. References | Related Articles | Metrics

Modeling and Optimization of Regional-Market-Oriented Product  Mix in Supply Chain Environment Peng Shu-fen1,2, Li Tie-ke1,2, Wang Bai-lin1,2 2012, 15 (6):  95-101.  Abstract ( 2301 )   Save In a supply chain, for each enterprise, product mix is downstream regional market oriented. To effectively operate a supply chain, each enterprise should optimize its product mix in the viewpoint of the whole supply chain. This problem is formulated as a multiobjective optimization problem with enterprise profit, market fill rate, and product sale rate as objectives. Then, based on quantum theory, an improved particle swarm optimization algorithm is proposed to solve the problem. By this algorithm, a concept of relative optimum membership degree is defined as fitness function such that multiple objectives can be effectively treated. Numerical experiments show that the proposed method is effective. References | Related Articles | Metrics

Network Design for Supply Chain with Stochastic Demand  Based on Network Diagram Jiang Tie-sheng, Li Bo 2012, 15 (6):  102-107.  Abstract ( 1921 )   Save A network diagram is used to represent the basic structure of a supply chain network such that the network design of a supply chain is simplified to determine the capacity and flow for each node. Based on the equilibrium conditions of the supply chain network and the simplified stochastic factors, the issue of optimal decisionmaking for both the manufacturing center and distribution center with stochastic demands is discussed. The optimality conditions are described by using variational inequalities. Then, a comprehensive supply chain network design model with stochastic demands is built. Analysis through numerical examples is used to illustrate the effectiveness of the model. References | Related Articles | Metrics

IT Investment Strategy of Multi-Oligopolies with Sequential Entrance for  B2B  E-Commerce Website Xie Zhao-xia1, Li Li2, Yang Wen-sheng2 2012, 15 (6):  108-113.  Abstract ( 2061 )   Save In a competitive environment, it is important to adopt an information technology (IT) investment strategy of B2B e-commerce websites such that it is competitive. It is assumed that one oligopoly enters first and then the others follow late. In considering IT cost reduction and competition intensity, an IT investment strategy model is developed. Then, the effect of IT cost reduction and competition intensity on IT investment strategy is analyzed. Results show that, as the IT cost decreases, the first entrant tends to adopt a defensive strategy, while the late entrants are willing to adopt an offensive strategy. With the increase of competition intensity, both the early entrant and late entrants adopt an offensive investment strategy. These results are helpful to IT investment strategy for B2B e-commerce website. References | Related Articles | Metrics

A Quantitative Analysis of Enterprise Profit under Inventory Impawn Financing Business with Market Uncertainty Yan Ying1,2, Shuai Bin2, Gan Mi2, Chen Si2 2012, 15 (6):  114-118.  Abstract ( 2149 )   Save In inventory impawn financing business, some factors, such as ordering cycle and price, are difficult to predict accurately, which make the quantitative evaluation of firm profit complicated. To solve this problem, an enterprise profit model under inventory impawn financing business is developed. With this model, two types of experts’ opinions for uncertain parameters are fused by using evidence theory such that probability distributions of uncertain parameters are derived. Then, probability distribution of enterprise profit under inventory impawn financing business is analyzed by using Monte Carlo simulation. Results indicate that the proposed method is useful and effective. The method is also more practical than an interval analysis approach and can provide quantitative evidences for decisionmakers who are risk-averse or risk preferential. References | Related Articles | Metrics

An Improved Ant Colony Algorithm for Solving Production-Transportation Lot-Sizing Problem Li Ying-jun, Chen Zhi-xiang 2012, 15 (6):  119-125.  Abstract ( 2135 )   Save Aiming at the implementation of joint decision of production and transportation, production-transportation lot-sizing problem is discussed, which is a multi-item-and-multi-period capacitated lot-sizing and transportation problem. This problem is then formulated as a 0-1 mixed integer programming problem. In this model, the transportation cost is decided by the numbers of containers. However, if demands exceed the transportation capacity, it can be outsourced, but with higher freight rate. After analyzing the properties of the model, an improved ant colony algorithm (ANT) is proposed. By this algorithm, different value of pheromone and heuristic information is set as 0-state or 1-state. Then, the 0-1 setup matrix, production matrix, and transportation plan can be obtained accordingly. A numerical example shows that integrated production and transportation can effectively reduce the procurement cost and further reduce the total cost. Comparison with other methods shows that the searching optimization probability of the proposed ANT is 100%, the average evolved generations is 10, the average time is 1 second. The ANT is more stable and better for seeking efficiency than other algorithms. References | Related Articles | Metrics

Study on Dynamic Incentive Model for Managers Liu Hong-yan, Zhang Yu-xi 2012, 15 (6):  126-131.  Abstract ( 1814 )   Save By using a principal and agent theory, a model of dynamic optimal incentive contract for managers is developed based on companies future performance achieved by managers longterm and shortterm effort. Conditions for achieving effective reputation and ways to enhance incentive effect are presented. It is shown that incentive strategy and managerial effort have great impact on companies future performance. The rationality and applicability of the model are illustrated by practical cases. References | Related Articles | Metrics

An Analysis of Swift Trust in Disaster Relief Teams Based on the Fuzzy Cognitive Maps Li Hai-yan1, Feng Chun1， Zhang Yi2 2012, 15 (6):  132-138.  Abstract ( 2038 )   Save Swift trust in disaster relief team can solve the problem of poor coordination in rescue such that the efficiency and effectiveness of the rescue can be improved. Thus, swift trust in disaster relief team is a hot topic in disaster management. Swift trust and the relationship between it and the factors that have effect on it are analyzed in the light of organization and individual levels. By introducing fuzzy cognitive map (FCM) theory, whole fuzzy cognitive map of swift trust in disaster relief team is built. Then, based on the dynamic characteristics of swift trust, analysis is carried out by using the reasoning mechanism of FCM. Results show that swift trust in disaster relief team is a high level of initial trust. There are two trends in its development: one is the stable development, and the other is a process of trust declining and trust repairing/ reconstruction. References | Related Articles | Metrics