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Article
Publication date: 22 February 2013

Ying‐Chieh Chen, Shui‐Chuan Chen and Ying‐Hao Chen

The purpose of this paper is to explore the system requirements model. According to the concept of loss costs of Type I and Type II errors, it can define the optimal decision…

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Abstract

Purpose

The purpose of this paper is to explore the system requirements model. According to the concept of loss costs of Type I and Type II errors, it can define the optimal decision line, and reduce overall loss costs. Moreover, it can decrease the probability of Type I and Type II error by the systems thinking, and it can effectively reduce overall loss costs.

Design/methodology/approach

The paper proposed a system demand model and constructed a decision‐making system thinking model as well as a decision‐making performance management model using the principle of system demand. Types of decision‐making errors were analyzed to set judgments on the error risk and establish a model of improvement evaluation key factors, in order to reduce decision‐making error risk and enhance decision quality. It also constructed the improved decision‐making to assess the key factors, to reduce the risk of making errors in order to improve the quality of decision‐making.

Findings

Optimistic decision‐makers (risk takers) tend to make Type II errors, whereas pessimistic decision makers (conservatives) tend to make Type I errors. Financial depressions are the time for optimistic decision makers (risk takers) and boom periods are the time for pessimistic decision makers (conservatives).

Originality/value

The concept of the loss cost of two decision‐making errors and related cost function models were proposed. Decision makers could make decisions with a more stable model, taking into consideration false alarms and the cost function of errors in order to determine the position of the decision‐making line. It could effectively reduce decision‐making error costs and increase the precision of decision‐making.

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Article
Publication date: 10 November 2020

Hao Ying, Lujie Chen and Xiande Zhao

This study aims to clarify the risk management practices of banks as supply chain finance (SCF) service providers.

1023

Abstract

Purpose

This study aims to clarify the risk management practices of banks as supply chain finance (SCF) service providers.

Design/methodology/approach

Using 4,014 evaluation and approval reports, this study constructed five risk management factors and examined their functions with secondary data. Two text-mining techniques (i.e. word sense induction, TF–IDF) were used to equip the classic routine of dictionary-based content analysis.

Findings

This research successfully identified four important risk management factors: relationship-based assessment, asset monitoring, cash flow monitoring and supply chain collaboration. The default-preventing effect of these factors are different and contingent on the type of financing contexts (i.e. preshipment, postshipment).

Practical implications

The empirical evidences provide practical implications for SCF service providers to manage risk. SCF service providers are suggested to pay more attention to cash flow monitoring when providing postshipment financing services and shift the focus to relationship building and supply chain collaboration when providing preshipment financing services.

Originality/value

The study shows that a large volume of textual materials can provide adequate clues for researches as long as they are mined with suitable analytic techniques and approaches. Based on the results, SCF service providers can identify problems of their operations and directions for improvement. In addition, the risk management vocabulary from the E&A reports can be utilized by SCF service providers to digitize their loan approving process and, further, to facilitate the decision-makings.

Details

Industrial Management & Data Systems, vol. 121 no. 2
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 15 January 2020

Xiao Song, Hao Ying, Xiande Zhao and Lujie Chen

The accounts receivable pool (ARP) is an e-invoice management system that provides suppliers with easy access to financial service. The purpose of this paper is to focus on the…

539

Abstract

Purpose

The accounts receivable pool (ARP) is an e-invoice management system that provides suppliers with easy access to financial service. The purpose of this paper is to focus on the strength and weakness of ARP mechanism and suggest efficient methods to identify creditworthy borrowers.

Design/methodology/approach

By decomposing the sales records of 348 ARP borrowers and predicting the occurrence of overdue incidences, this study first portrays the creditworthy borrowers by sales features. Then, content analysis was applied to measure the loadings of soft and hard information, and examined the effectiveness of different information structures in creditworthiness assessment.

Findings

For ARP borrowers, upward trend and low volatility reveal their creditworthiness. In order to identify creditworthy borrowers beforehand, ARP financiers who have elaborated more soft information and less hard information can perform better.

Originality/value

This study first discussed ARP finance from a critical perspective and underlines borrower assessment to eliminate the defect of loose recourse. The empirical evidence presents the sales features of creditworthy borrowers. Moreover, the results suggest an efficient approach for ARP financiers to conduct better assessment.

Details

Industrial Management & Data Systems, vol. 120 no. 3
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 25 February 2014

Yi-Cheng Huang and Ying-Hao Li

This paper utilizes the improved particle swarm optimization (IPSO) with bounded constraints technique on velocity and positioning for adjusting the gains of a…

204

Abstract

Purpose

This paper utilizes the improved particle swarm optimization (IPSO) with bounded constraints technique on velocity and positioning for adjusting the gains of a proportional-integral-derivative (PID) and iterative learning control (ILC) controllers. The purpose of this paper is to achieve precision motion through bettering control by this technique.

Design/methodology/approach

Actual platform positioning must avoid the occurrence of a large control action signal, undesirable overshooting, and preventing out of the maximum position limit. Several in-house experiments observation, the PSO mechanism is sometimes out of the optimal solution in updating velocity and updating position of particles, the system may become unstable in real-time applications. The proposed IPSO with new bounded constraints technique shows a great ability to stabilize nonminimum phase and heavily oscillatory systems based on new bounded constraints on velocity and positioning in PSO algorithm is evaluated on one axis of linear synchronous motor with a PC-based real-time ILC.

Findings

Simulations and experiment results show that the proposed controller can reduce the error significantly after two learning iterations. The developed method using bounded constraints technique provides valuable programming tools to practicing engineers.

Originality/value

The proposed IPSO-ILC-PID controller overcomes the shortcomings of conventional ILC-PID controller with fixed gains. Simulation and experimental results show that the proposed IPSO-ILC-PID algorithm exhibits great speed convergence and robustness. Experimental results confirm that the proposed IPSO-ILC-PID algorithm is effective and achieves better control in real-time precision positioning.

Details

Engineering Computations, vol. 31 no. 2
Type: Research Article
ISSN: 0264-4401

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