Xumei Zhang

Supply chain coordination with information sharing: The informational advantage of GPOs

This paper explores the potential of group purchasing organizations (GPOs) in facilitating information sharing and coordinating horizontal competition. We consider a supply chain composed of one GPO and two manufacturers competing in quantity. The GPO sources and prices a common component for the manufacturers. Each manufacturer has some private information about the uncertain demand, and can choose a part to share with the GPO. Through benchmark analysis, we identify the manufacturers’ horizontal competition and information incompletion as two determinants of supply chain inefficiency under individual purchasing. Then, we investigate the impacts of the GPO on the supply chain with wholesale price contracts and show that double marginalization induced by the GPO is another determinant of inefficiency. For this, both manufacturers have no incentive to share information and group purchasing damages the supply chain. We also show that under group purchasing, information sharing partially from the lower-precision manufacturer rather than both can benefit the supply chain. Next, we present a forecast-sharing-based compensation contracting scheme, under which, the GPO can make perfect supply chain coordination in both quantities and information sharing, and all members in the supply chain can reach win–win results. Finally, we illustrate the GPOs informational advantage by numerical examples.

The pricing of product and value-added service under information asymmetry: a product life cycle perspective

Facing fierce competition in the global manufacturing industry, manufacturers have begun developing value-added services to increase their competitiveness. One type of sales strategy that has become prevalent is for companies to offer consumers, a relatively low price for value-added services when consumers buy the services simultaneously with the product and a relatively high price for the same value-added services in the future. Considering the degree of information asymmetry about service quality and the changes of it in a product life cycle, this paper examines the pricing of product and value-added service. Four types of pricing strategies are proposed that depend on the time that consumers choose to buy the value-added service. In addition, the results of our study show that a manufacturer choosing a pricing strategy should consider the degree of information asymmetry and consumers’ initial expectations regarding the value-added service quality. When consumers’ initial expectations regarding the value-added service quality are high, the manufacturer should choose one of the four pricing strategies that encourage consumers to buy the service simultaneously with the product. When consumers’ initial expectations regarding the value-added service quality are low, the optimal strategy for the manufacturer depends on the difference in the degree of information asymmetry.

Hybrid particle swarm optimisation with k-centres method and dynamic velocity range setting for travelling salesman problems

The particle swarm optimisation (PSO) does well in the continuous optimisation problems. To solve travelling salesman problem (TSP) with the PSO, priority coding method is presented to code the solution of the TSP. Then a method based on dynamic setting of velocity range is proposed for the PSO to remove the side effect which results from inconsistency of the search space and the solution space under the priority coding method. The experiment shows: the descending velocity range could achieve this goal and the descending rate of velocity range should match up with that of the priority range in position vector. In addition, a new approach based on cluster analysis on the swarm with the k-centres method is proposed for preventing the PSO from local optimum during solving the TSP. Through this mechanism, the diversity of the swarm could be reserved as the computation goes on, which could improve the performance of the PSO.

Price and Service Competition in the Supply Chain with both Pure Play Internet and Strong Bricks-and-Mortar Retailers

In the traditional retail industry, some supermarket chains and department stores have been maintaining strongpositions as the market comes to maturity. They can make use of the strong positions to squeeze their suppliers andobtain extra earnings. This situation may be challenged by the rapid development of e-commerce. Consumers’purchase habits have been changing and many manufacturers are starting to sell goods through electronic retailers, inaddition to their traditional distribution channels. This paper analyzes price and service competition in the dualchannelsupply chain with both pure play Internet and strong bricks-and mortar retailers, investigates the influence ofretailer power and proposes some competitive strategies for traditional retailer under e-commerce environment. Thedemand model is proposed based on consumer utility theory, and Stackelberg theory is used to analyze the gameprocess in which the manufacturer is the leader and the two retailers, acting simultaneously, are the followers. Theequilibrium price and service decisions of the supply chain members are reached. The analysis of the competitivestrategy is divided into two parts. Firstly, the influence of the retailer power on members of the supply chain isexamined. We find that although the traditional retailer can use its power to depress the wholesale price, this strategycannot help the traditional retailer increase its profit. Secondly, other competitive strategies of the traditional retailerare analyzed and the traditional retailer is found to be able to improve its operating status through adjusting prices andservices via specific actions.

Relational mechanisms, market contracts and cross‐enterprise knowledge trading in the supply chain

Purpose – The purpose of this paper is to study the effects of relational mechanisms and market contracts on cross‐enterprise knowledge trading in supply chain and to examine the role of market contracts. Relational mechanism is categorized into indirect and direct relational mechanism in this paper. Cross‐enterprise knowledge trading is categorized into explicit and tacit knowledge trading. The indirect relational mechanism is mainly expressed by knowledge brokers, while the direct relational mechanism consists of shared goals and trust.Design/methodology/approach – Multiple regression analysis was performed on questionnaire data from 256 Chinese manufacturing enterprises in supply chain in order to assess the relationships between relational mechanisms, market contracts and cross‐enterprise knowledge trading.Findings – The results show that knowledge brokers and market contracts have significant and positive effects on explicit knowledge trading, but the effects on tacit knowledge trading are not signif...

Evaluation of reliability of distribution service

The reliability of a distribution service is defined, factors that may influence it are analyzed, an evaluation method is suggested based on the theory of Markov processes; and the reliability of distribution is obtained when the distribution center operates steadily. The evaluation method proposed in this paper is applied to a case study to provide some theoretical and empirical approvals for distribution centers that want to evaluate and improve reliability of the distribution service.

The collaborative distribution strategies in a dual-channel supply chain with electronic and retail channels

In dual-channel supply chain, when the electronic channels controlled by the manufacturer and retailer channels owned by the retailer are mutually independent, there will be conflict of their interests. We consider the manufacturer chooses cooperation with the retailer in the electronic channels, and all orders of electronic channels are distributed by the retailer, which shares the electronic channelspsila revenue with the manufacturer, and a Stackelberg game model is proposed. To a simplified parameters case, we find that the manufacturerpsilas wholesale prices in dual-channel supply chain, which the electronic channels are independent from retailer, and the manufacturerpsilas income sharing proportion have effect on the cooperation choice between the manufacturer and the retailer. To a general case, by numerical examples we get that the cooperation of the manufacturerpsilas electronic channels and the retailer is the optimal strategy under certain conditions.

Study on the operation mode of knowledge market supporting knowledge share in supply chain

Based on Davenportpsilas theory of internal knowledge market, knowledge market in supply chain is presented for the purpose of facilitating the flow and share of knowledge. And the operation mode of knowledge market in supply chain is built from the aspects of components, trade patterns and trade rules. The components are composed of knowledge demanders, suppliers, broker and trade environment; the trade patterns include spontaneous trade (enterprise to enterprise), core enterprise as an organizer (enterprise to core enterprise) or outsourcing (enterprise to the third party). At last, the problems and the prospect of knowledge market in supply chain are discussed in this paper.

An Empirical Study Of The Key Factors Affecting Consumers' Purchase Decision On Life Insurance

Factors affecting the intention and premium of purchasing life insurance are investigated in this paper. Results of factor analysis and structure equation model indicate that the extent of worrying about future, economical condition, cognition about life insurance and adventure activities preference have significant positive effects on the intention of purchasing life insurance; economical condition has significant positive effect on the premium of purchasing life insurance; health status has significant negative effect on the premium of purchasing life insurance. Among these factors, Cognition about life insurance has the biggest effect on the intention of purchasing life insurance; economical condition has the biggest effect on the premium of purchasing life insurance. Based on the theoretical results, there are some credible marketing policies for life insurance trade.

Integrated DNC: A case study

With the development of CNC, communication and CIM technology, the connotation and functions of DNC have been greatly enlarged. In order to describe the features and development of contemporary DNC, a new concept, integrated DNC, is presented in this paper. The connotation of integrated DNC and other relative concepts are discussed. Four control architectures of integrated DNC are proposed, including bi-hierarchies, tri-hierarchies, quadri-hierarchies and acrossshops architectures. A case study of integrated DNC is introduced.