Suyuan Wang, Huaming Song, Hongfu Huang and Qiang Huang
This paper explores how the manufacturer’s strategic choice (acquisition or investment) impacts product quality in a supply chain comprising two complementary suppliers and a…
Abstract
Purpose
This paper explores how the manufacturer’s strategic choice (acquisition or investment) impacts product quality in a supply chain comprising two complementary suppliers and a common manufacturer.
Design/methodology/approach
The manufacturer faces six strategic choices to improve product quality: acquiring or investing in the high-capable supplier, the low-capable supplier, or both. As the Stackelberg leader, the manufacturer determines which strategy is adopted, while suppliers are separately responsible for components’ quality and wholesale prices. The authors use game theory and calculate the model with Mathematica.
Findings
The authors develop analytical models to analyze how acquisition costs, investment proportions, component importance and quality improvement coefficients influence decision-makers. The results show that the highest quality may not benefit the manufacturer. Investing in or acquiring a low-capable supplier is better than a high-capable supplier under certain conditions. If the gaps between two suppliers’ quality improvement coefficients and the importance of two components are dramatic, the manufacturer should choose an investment strategy.
Originality/value
This study contributes to the complementary supply chain management by comparing two kinds of strategies-acquisition and investment, with a high-capable supplier and a low-capable supplier.
Details
Keywords
Suyuan Wang, Huaming Song and Canran Gong
Companies face the critical reliability problem of products due to the development of outsourcing. This study intends to provide some feasible solutions for a company to improve…
Abstract
Purpose
Companies face the critical reliability problem of products due to the development of outsourcing. This study intends to provide some feasible solutions for a company to improve the reliability level of products.
Design/methodology/approach
The paper considers the reward and reliability decisions regarding a product made with two complementary components from two different suppliers: high-capable and low-capable. Two kinds of reliability improvement incentives (normal incentive and cost-sharing incentive) through which a manufacturer provides a reward and shares the reliability improvement cost with a supplier are discussed. As the Stackelberg leader, the manufacturer determines the strategy, while the suppliers are responsible for determining its reliability. Using a game-theoretic framework, four different contract scenarios are addressed. We develop analytical methods to better understand how the manufacturer decides the incentive mechanism to be used for the suppliers.
Findings
The results show that cost-sharing contracts do not always lead to a higher reliability level and more enormous profits. Setting a target reliability level is better for the manufacturer. The cost-sharing contract is beneficial for a high-capable supplier even though it does not directly participate in that kind of mechanism. A low-capable supplier gains more profit when the manufacturer provides incentive mechanisms that do not specify a target reliability level.
Originality/value
This paper investigates the reliability improvement mechanism used for complementary products and focuses on identifying the optimal decisions when demand is influenced by the gap between the product's failure rate and the standard failure rate.
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Dongmei Han, Wen Wang, Suyuan Luo, Weiguo Fan and Songxin Wang
This paper aims to apply vector space model (VSM)-PCR model to compute the similarity of Fault zone ontology semantics, which verified the feasibility and effectiveness of the…
Abstract
Purpose
This paper aims to apply vector space model (VSM)-PCR model to compute the similarity of Fault zone ontology semantics, which verified the feasibility and effectiveness of the application of VSM-PCR method in uncertainty mapping of ontologies.
Design/methodology/approach
The authors first define the concept of uncertainty ontology and then propose the method of ontology mapping. The proposed method fully considers the properties of ontology in measuring the similarity of concept. It expands the single VSM of concept meaning or instance set to the “meaning, properties, instance” three-dimensional VSM and uses membership degree or correlation to express the level of uncertainty.
Findings
It provides a relatively better accuracy which verified the feasibility and effectiveness of VSM-PCR method in treating the uncertainty mapping of ontology.
Research limitations/implications
The future work will focus on exploring the similarity measure and combinational methods in every dimension.
Originality/value
This paper presents an uncertain mapping method of ontology concept based on three-dimensional combination weighted VSM, namely, VSM-PCR. It expands the single VSM of concept meaning or instance set to the “meaning, properties, instance” three-dimensional VSM. The model uses membership degree or correlation which is used to express the degree of uncertainty; as a result, a three-dimensional VSM is obtained. The authors finally provide an example to verify the feasibility and effectiveness of VSM-PCR method in treating the uncertainty mapping of ontology.
Details
Keywords
Francois Quesnay, known as the “Confucius of Europe”, was profoundly influenced by traditional Chinese culture to form his thoughts, which contained strong Chinese…
Abstract
Purpose
Francois Quesnay, known as the “Confucius of Europe”, was profoundly influenced by traditional Chinese culture to form his thoughts, which contained strong Chinese characteristics. This paper aims to examine economic thought of Francois Quesnay from the perspective of the construction of socialist political economics with Chinese characteristics.
Design/methodology/approach
Moreover, his thoughts also profoundly influenced subsequent economists, such as Adam Smith and Karl Marx. It can be said that Francois Quesnay was at the intersection of Chinese, Western and Marxist thought systems, so it is quite important to examine his thoughts critically and conduct source-tracing in China.
Findings
Hence, in the process of constructing and developing socialist political economy with Chinese characteristics, there is an urgent need to focus on exploring the value of excellent traditional Chinese culture at the theoretical level and combining the development and dissemination of the history of thoughts and the historical position of Chinese reality to realize the innovation and development of socialist political economy with Chinese characteristics.
Originality/value
Meanwhile, while absorbing nutrition from excellent traditional Chinese culture, it is necessary to establish scientific coordinates rather than use the discourse systems and paradigms of Western economics to interpret ancient Chinese economic thoughts. It is necessary to adhere to, inherit and develop Marxist political economy and absorb nutrition from Chinese excellent traditional culture to construct socialist political economy with Chinese characteristics.