Showing papers in "Journal of Management Sciences in China in 2004"

Classification & research advancement of comprehensive evaluation methods

Abstract: This paper first summarizes and classifies the comprehensive evaluation (CE) methods in different fields, and analyses the principles, virtues, shortages and their application fields of each method. It explores the newly research development of CE methods. There are three major problems in existing methods: The first is the non_consistency about the evaluation conclusion when using different CE methods; the second is the lacking of special treatment in practice; the third is the disjoint between theory researches and practical applications. Based on this, the paper puts forward the new idea that the combined evaluation based on methods integration is to set up an I~3DSS that supports the consistent evaluations.

Role-based multi-agent workflow systems

Abstract: Many workflow-modeling tools have been developed, but most of them describe business process in terms of activity, product, goal or decision-making. Little attention is paid to roles and interactions among them. However, the success of an enterprise depends on its people and their accountabilities in the final analysis. In this paper, role-oriented workflow modeling is analyzed from the perspective of roles and their interactions. Then how to represent the role-oriented workflow models is discussed, which provide a new method for workflow management. Furthermore, with reference to the architecture of WFMC, role-driven approach to workflow management systems described by multi-agent systems (MAS) is proposed based on the analysis of the relationship between agents and roles, between MAS and workflow systems. A prototype is realized based on the approach.

On dynamics of discrete model based on investment competition

Abstract: First, a discrete nonlinear dynamics model is set up based on investment competition for homogeneous enterprises in this paper. Then, the stability of fixed points and all kinds of bifurcations as well as chaos behaviors of this model are studied. Moreover, the economic meaning that the nonlinear dynamics characters of this model is discussed. The results show that chaos is generated by quasi-periodic transition and double-periodic bifurcation with parameter increasing in this model. The nonlinear dynamics behavior can effectively explain a kind of social economy phenomenon that investment competition results in economic scale growth for a enterprise and down for another for homogeneous enterprises.

Study on method of evaluating customer profitability based on data mining

Abstract: This paper discusses the customer profitability in CRM. It uses the data mining technique in order to supplement the lack of the operational method in evaluation of customer profitability. Then the process of the evaluation and the decision-tree model of classification are proposed.

Research on model of supply chain inventory coordination and optimization

Abstract: The traditional inventory management dominantly pays attention to the internal inventory control of business, and is neglectful on supply chain coordination and partnering. The local optimization management mode results in impeded logistics, cost increase, lack of business and supply chain competitiveness. Supply chain coordination and partnering become significant means to improvement of supply chain performance, enhancement of business competitiveness. This paper makes some beneficial approaches to the inventory coordination and its value of the two_stage supply chain under indeterminate supply and demand through model research. Under period review replenishment, the paper introduces concept of effective inventory level, which represents upstream shortage's influence on downstream inventory, models the inventory of suppler and buyer, and globally optimizes safety factor to reduce supply chain inventory cost. Meanwhile, authors present the realization mechanism of safety factor's global optimization, and make sensitivity analyses on value of global optimization.

Bullwhip effect and validity of production-smoothing model

Abstract: This article reviews the main progress in studying the bullwhip effect in supply chains and the argument about the validity of the production-smoothing model. Some of our very recent achievements in these two areas are also introduced. Our work integrates a general ARIMA (autoregressive integrated moving average) demand process into a multi-stage supply chain, and by the integrated model studies systematically the propagation rules of the demand information flow. The findings of these propagation rules revoke some classical conclusions on the bullwhip effect, reveal some important and novel phenomena and provide a reasonable explain on the validity of the production-smoothing model. Three questions are also asked for further investigations in the field.

Decision analysis for order-specific component procurement with loss-averse (utility)

Abstract: This paper studied a procurement problem faced by the make_to_order manufacturer with loss_averse utility, who will purchase additional units of an order_specific component besides his advanced purchasing Because of long leadtime, the advanced procurement was an important way to increase the possibility of on_time delivery, and it might result in a lot of dead inventory It was a big challenge to the make_to_order company to tradeoff the dead inventory and late delivery After a mathematical purchasing_problem model was setting up, the existence of the optimal solution was proved and the effect of loss aversion, the uncertainty of the component demand, the supply contract parameters, and the component nature etc on the purchasing decision were studied As a result, our research reveals that the loss_averse manufacturer's purchasing decision is different from the manufacturer's with risk_neutral utility and risk_averse utility, and it is not in line with the intuition under some circumstances

Revenue management:State-of-the-art and future prospects

Abstract: As a rapidly growing field of management science,revenue management is an effective technique to manage perishable products in service industries.While it has advanced in both theory and practice worldwide,it is yet to be boosted in China.This article surveys the research works in three major components of revenue management—dynamic pricing,capacity control,and overbooking.It also reviews the development of revenue management in China,which is much needed in promoting the business strategy in the nation's service sector in its post WTO economy.

Comparison of VaR based on GARCH and SV models

Abstract: This paper reviews the concept and the calculating method of Value at Risk(VaR) and points out the importance of predicting the volatility of market factor for calculating VaR. Compared with GARCH models, SV model is superior to describe the characters of financial market. A SV model is used to define the volatility which is needed to estimate VaR. The experimental research manifest that the SV model predicts the volatility of market return perfectly and the following VaR reflect the risk level of Chinese stock market properly.

Standard form of interval linear programming and its optimal objective (interval value)

Abstract: A standard form of interval linear programming was defined. The solution of the best optimal objective value and the worst optimal objective value of the standard form was studied. Interval objective function, interval inequality constraints and interval equality constraints were discussed separately. By this way, exact linear programming to find the best and the worst optimal objective value of IvLP can be built. Finally an example was given and some complementary comments were made.

CAPM based on relative wealth and habit formation

Abstract: This paper constructed an utility function based on the relative wealth and habit formation, that is, the investor's preference depends on his consumption history, as well as his relative wealth. The new utility function was used to develop a general framework of CAPM with the relative wealth and habit formation, and three specific utility functions were used to get the asset-pricing model.

Benchmark selection for supply chain assessment based on clustering mining technology

Abstract: Benchmarking, which is one of the methods for supply chain assessment, has important application value, while how to select appropriate benchmark is the bottleneck of this method. Aiming at this problem, this paper discusses how to collect and analyze the characteristics of supply chains with density_based clustering mining technology, so that it can provide decision support to compare and improve supply chain performance with benchmarking. In the approach, firstly, the index values of supply chain performance are standardized. Then, they are classified by density_based clustering technology (improved K_average clustering method). After the analysis of each cluster, the problem of benchmark selection is solved. Finally, a numerical example is given to illustrate the proposed approach.

Impact of personal guanxi on exercises of power in China marketing channels

Abstract: Based the theory of power in marketing channels, this paper investigated the impact of personal guanxi on exercises of power in the context of China marketing channels. It was found that the personal guanxi between the reps of suppliers and the relevant persons of retailers did not have significant influence on the retailers' exercises of noncoercive power, but it did have both significant and negative affect on retailers' exercises of coercive power. The implications of the findings are suggested.

Analysis of method for enterprise to search partners base on data mining

Abstract: It is very important for an enterprise to construct its business alliance with its business partners. In this case, selection of optimal partners is crucial to the success of the alliance. This article describes a technology of data mining, i.e. support vector machines, then constructs an optimal partner searching model based on SVMs(support vector machines). Practical effectiveness of SVMs for searching optimal partner in huge enterprise database is proven in the paper.

Supply chain coordination with contracts under twice producing and ordering mode

Abstract: We examine the problem of supply chain coordination with contracts under twice producing and ordering mode when considering supply chain members' cost of handling returned products and comparative liquidation advantage, and determine conditions under which either return contracts or markdown allowance contracts will be more desirable. Efficient return contracts and efficient markdown allowance contracts are designed to coordinate the retailer to order the same quantities as in central control mode. Using means of numerical study, we find that as return price or markdown allowance increases, the retailer's expected profit and overall order quantity increase and the retailer tends to order more in period 1, order less in period 2; the manufacturer's producing quantity in period 1 increases according to the retailer's order and his producing quantity in period 2 doesn't vary much; the manufacture's performance decreases with increasing return price; increasing markdown allowance in certain range can improve the manufacturer's performance, then after a threshold his expected profit decreases.

Dynamic stability decision-making of talents system by robust control theory method

Abstract: The issue of dynamic stability decision_making of senior talents system is studied by using modern robust control theory and linear matrix inequality approach. A class of linear uncertain time_varying dynamic model of talents is established, some existing basis are also discussed. Some criteria of robust stability and robust decision-making of senior talents systems are put forward. Its significance in particular conditions are presented. Finally, an example is given to illustrate the validity of our results.

Comprehensive analysis of pricing and seat inventory control in airline revenue management

Abstract: Pricing and seat inventory control are primary strategies for airlines to improve their profitability and competitiveness. In the past, however, research in these two areas has been carried out independently. This article proposes a comprehensive model that integrates the two decision processes in airline revenue management. It assumes that the airline serves multiple fare classes. Demand of each fare class follows a Poisson process whose intensity is time dependent. Given the state of remaining seats and time-to-go, the airline determines an optimal fare-mix and an optimal fare for the customer class if it is open. It develops a three-stage strategy for the optimal policy which is fairly simple and tractable. Numerical examples are provided.

Theoretical and empirical study on EVA: Review and prospect

Abstract: The paper gives a general review of the theoretical and empirical study on economic value added (EVA). EVA is a managerial performance measure based upon the residual income concept and has been widely used in corporate managerial practice. In this paper, the definition of EVA was introduced, and the goal congruence that EVA aims to achieve as a performance measure was discussed theoretically. Then we commented on the validity of EVA derived from the results of the empirical researches, and finally gave a prospect on the further study in this field.

Return policies in supply chain system with quick response strategy

Abstract: With long lead_time, the wide impact of order decision is very inaccurate. Quick response strategy consists of dealing with this problem and enables orders to be placed closed to the start of the selling season. Retailers can adjust their order quality after gathered more and better demand information. But quick response strategy may not always make both manufacturers and retailer's benefits better. Ref 1. showed that under low service levels QR improves both retailer and manufacturer profits, but we would not observe such lower service levels in practice. The original purpose of this paper is to investigate the return polices in the supply chain system with QR strategy. Under some conditions, return policies will make QR system Pareto improving. In this paper, the author also consider changing of the expected quantity sold and the expected quantity shortage and the expected quantity left over.

Survey of real option approach to analyze strategic investments of technology innovations

Abstract: The real options approach is more suitable to analyze the problems of investment decisions under uncertainty than the traditional discounted cash flow approach (DCF) does. However, the firms' strategic investments under the imperfect competition can't be analyzed and evaluated accurately only by the real option approach. According to whether considering the strategic interactions among firms' decisions under the imperfect competition, this paper divides the real option approach into the general real option approach and the strategic real option approach. Mainly focusing the strategic real option approach, this paper surveys the existent real options theoretical models and approaches to analyze the firms' investments of technology innovations. Finally, recommendations are given for further research.

Effective dialogue model of the interactions among experts based on learning organization in HWME

Abstract: The hall for workshop of metasynthetic engineering (HWME) combines the experience intelligence of all the generalized experts and the high capability of computer in the global level Thus it is a knowledge system to solve the complex problem by the collective wisdom emerging from the network of HWME resulted from the interactions among and between the generalized experts HWME based on internet includes the experts, computer, internet and intranet Because there is open dynamic complex in the group of experts, a rule of melting learning organization and merit of seminar into effective interaction is needed in HWME This paper applies the information technology and artificial intelligence to implement the rule With the addition of social thought technology such as system thinking and dialogue in depth to the dialogue theory and model in AI, a new, operable, embedded in human-computer interface, effective and applicable dialogue model is established, and a room for effective interaction is chosen to be intranet This provides an effective path for the application research of social thought

MMKN model of structure in organizations

Abstract: Computational mathematical organization theory based on modeling and simulation is a new branch of organiziation theory studies in recent 10 years. The precondition of simulation is that the organizational structure model, which should be highly general and easily operated, must be established. Proposed in this paper is the multiplex multi-kernel network(MMKN) model used to characterize organizational structure. This model abstracted highly the complexity such as the diversity of relationships and elements, dynamical character and hierarchical structure, and the feature of different nature and differentiation of actors in networks. A rough framework of MMKN described by graph theory was outlined in terms of the diversity of relationships and elements, and some suggestions for future simulation and programming was presented. Finally the advantage of MMKN in macroscopical processing of organizational behavior was demonstrated through a case of network research in an academic group consisted of doctoral mentor and his graduates.

Study on customers' repurchase intention in China

Abstract: Creating customer loyalty is one of the central tenets and principal objectives for a company Customers' repurchase intention, one of the major measurements for customer loyalty, is the object of this study The article firstly carries out a literature review about the influencing factors of customers' repurchase intention and brings forward the research questions of this study Then, this paper takes durable goods industry in China as an example, employs the hierarchical linear models to analyze the variation of customers' repurchase intention at both individual and brand levels Research results show that the percentage of individual level variance of customers' repurchase intention is much higher than that of brand level variance for the durable goods industry in China Further research reveals that companies should improve research on market segmentation and provide customized products and services to target markets, should make great efforts to improve customer satisfaction, and should avoid the image of low-price-low-quality Furthermore, companies could implement the policy of improving service quality or increasing the quality/price ratio as low cost with high efficiency strategies to enhance customers' repurchase intention

Response-time optimization of supply chain with multi-stage based on bi-level programming

Abstract: Optimizing and shortening multi-stage response_time. As one of supply chain management goals, is an effective approach to supply chain to respond rapidly the demand in market and to reduce lead time. Firstly, the concept of supply chain multi-stage response time was illustrated. Supposed the core firm is a coordinating center, this paper constructed a decision-making mechanism, and developed a bi-level programming approach to model the supply chain multi-stage response_time. Then, the model was tested and verified by analyzing a practical case. The results shows that the model can coordinate the whole supply chain's benefit, local node firm's benefit, allocate production time and logistics time rationally, and is an effective decision-making aided tool for supply chain to optimize and shorten multi-stage response time.

Optimal decisions of safety stock for individual item inventory systems based on σ/Q

Abstract: This paper studies the use of safety stock in single_item inventory systems. At first, we studied the relationship of two kinds of service level, and then based on this relationship, by numeric arithmetic, we constructed a search procedure to find the optimal order quantity. The cost implications of using these criteria are thoroughly explored, the major criteria in determining and evaluating safety stock are identified. The issues of discrepancy between the safety stock use in theory and that in practice are addressed. At last we explored an efficient heuristic decision of selecting the safety factor for managers to cope with uncertainties under different user's environment.

Groupthink theory: Model development and empirical research review

Abstract: This paper reviews the development of groupthink theory and summarizes its empirical research. Groupthink research from 1971, including case analysis and laboratory test, is reviewed. Results from these two research areas are briefly compared. It is concluded that groupthink research is still a live theory that need further study. Future research issues and relative recommendations are provided finally.

Stock price behaviors under price constrains

Abstract: The overreaction hypothesis and the information hypothesis are two major hypotheses regarding the effects of price constrains on stock price behavior. This paper examines the price behavior of limit moves for stocks listed on the Shanghai Stock Exchange over the period 1997—2001. The results indicate the price continuations for the overnight period following limit moves and the price reversals for the subsequent trading time period. These results show that the noise traders on Shanghai stock market overreact to new information. On the other hand, the price constrains on Shanghai Stock Exchange restrict the overreaction.

Experimental study of behavior of budgetary slack

Abstract: Budget management has raised extensive attentions in practice in China. But academic researches on budget management, especially on budget participator's behavior are relatively lagging behind. In this paper we make some attempts in this field by using experimental research methods. As a result, we find that both information symmetry and truth_inducing compensation scheme have restraining effects on budgetary slack, among which the effects of the former are especially significant. Moreover, in our experiment we did some comparisons on purpose between professional accountants from domestic enterprises and college students majoring in accounting. The results show that, in the same experimental context.

Review on study for transfer pricing

Abstract: In this paper, we summarized the present condition of study for the transfer pricing in intrafirm trade of affiliated enterprise We divide all researches into two aspects One aspect is that the researchers consider tax factors in internal trade and the other aspect is that the researches do not consider tax factors We analyze the drawbacks and limitation for all kinds of transfer pricing strategies, and combing the realism condition put forward the further study direction At last, the paper discusses the newest development at present and the trend of research in the future of transfer pricing

Senior debt and incentive effects of junior debt

Abstract: A model of incentive effects of senior debt and junior debt is developed in the paper, in which both the rate of inflation and the rate of dividend yield are incorporated. Using the method of the game theory analysis of options, the analytic valuation formulas of the senior debt, junior debt, equity and firm, respectively, is presented in the paper. The paper discuss that the effect of the rate of inflation and the rate of dividend yield on the firm's bankruptcy decision, the firm's decision to issue junior claims and this wealth transfer between the debt holders and the equity holder, respectively. In order to demonstrate that the rate of inflation and the rate of dividend yield cannot be neglected in borrow-lend contracts.