Table of Content

25 December 2019, Volume 28 Issue 12

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Theony Analysis and Methodoloy Study

Scheduling Optimization of Cloud Manufacturing Platform Processing Capability Sharing

ZHAO Dao-zhi, WANG Zhong-shuai

2019, 28(12):  1-6.  DOI: 10.12005/orms.2019.0266

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Scheduling optimization of cloud manufacturing platform processing capability sharing is the core operational issue of the cloud manufacturing model. In order to improve the utilization efficiency of enterprise resource in the sharing of cloud manufacturing platform, solve the problem of enterprise-level manufacturing resource scheduling under the actual cloud manufacturing demand environment , and meet the dynamic real-time requirements of the cloud manufacturing platform, a cloud processing capabilities scheduling model based on platform and sharing-oriented is constructed with the minimization duration as the scheduling target and the minimization cost as constraint target. An improved second order particle swarm optimization algorithm introducing cloud manufacturing task simple coding and random weights is designed to quickly solve optimal scheduling sequence of multiple cloud task orders, and an update strategy of the share ability window is proposed. Finally, a sample application verifies the feasibility and validity of cloud manufacturing platform processing capability scheduling mechanism.

Multi-objective Emergency Production Assignment Model Based on NSGA-II

GONG Ling-jun, ZHANG Ji-hai

2019, 28(12):  7-13.  DOI: 10.12005/orms.2019.0267

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After a large-scale emergency incident, emergency production plays an important role in ensuring emergency material’s demand, if the storage does not satisfy emergency material demand. In this paper, we address the multi-objective emergency production assignment problem for the post large-scale emergency incident. Moreover, the paper pays attention to the influence of changing in raw material supply for emergency materials production capacity. A multi-objective programming model for emergency material production assignment is proposed to minimize the total time and cost of emergency production assignment, which contains multiple raw material suppliers of emergency material, multiple emergency material manufacturers and one affected area. The NSGA-II(Non-dominated Sorting Genetic Algorithm II), which has many advantages in solving multi-objective programming problem, is introduced to the solution of the model. With the aid of analysis of an example, the algorithm can gain better Pareto front, and provide optimal emergency material production and raw material support plan, which can help the decision making for decision makers. This paper illustrates that it is necessary to do well in supporting the various elements such as raw materials, funds, electricity, and transportation, for completing the emergency production tasks faster.

Research on the Optimization of Patent Agency Services from Perspective of Prospect Theory

CHEN Wei, LIN Chao-ran, LI Jin-qiu, YANG Zao-li, LIN Yan

2019, 28(12):  14-24.  DOI: 10.12005/orms.2019.0268

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Patent agency services are important component of intellectual property services. By interest distribution contracts, participants are motivated to adopt a win-win behavioral strategy. It is an important direction to improve cooperation efficiency and enhance the effectiveness of patent agency services. Considering the limited rationality of decision makers, this paper proposes a prospective income distribution plan for patent agency services and introduces the prospect theory to measure the impact of psychological factors based on the limited rationality of decision-makers. Then, it establishes a gain perception matrix to construct the evolutionary game model and explore the game relationship and evolutionary stability strategy(ESS)between inventor and patent agency services. Through numerical simulation, the key variables influencing the evolutionary stability strategy are revealed. The results show that the prospective income distribution plan is feasible and the most efficient way to avoid default and maintain the stable operation of patented services is to increase the default penalty and reduce the share of long-term income.

Robust Bi-level Programming Model for Robot Task Assignment of “Rack-to-Picker”Picking System

LI Teng, FENG Shan, SONG Jun, LIU Jin-fang

2019, 28(12):  25-34.  DOI: 10.12005/orms.2019.0269

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In the e-commerce “rack-to-picker” picking system, how to schedule robots in the system and distribute tasks reasonably determines the operating efficiency and cost of the whole system. Through the analysis of the operation process in“rack-to-picker” picking system, a two-layer planning model for robot number configuration, robot scheduling and robot task assignment is established. The upper model calculates the integer programming model by taking the minimum total cost of the bulk order as the objective function and the robot scheduling as the decision variable. The lower model uses the minimum average idle rate of the robot to complete the tasks as the objective function, and the task assignment as the decision variable. Considering the uncertainties of the walking distance caused by the robot in the process of completing the task due to scheduling, obstacle avoidance and path planning, the robust optimization model is established. The upper layer scheduling results constrain the lowest average idle rate of the lower layer, and the lower layer task assignment result affects the minimum cost of the upper layer. The upper and lower layer results together determine the robot configuration decision. The genetic algorithm is used to solve the model, and the effectiveness of the model is verified by an example simulation.

A Method of Two-stage Risky Emergency Decision for Large Group Based on the UGC Big Data Mining

XU Xuan-hua ,YANG Xin, CHEN Xiao-hong

2019, 28(12):  35-45.  DOI: 10.12005/orms.2019.0270

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Aimed at the risk of both the uncertainty and deviation from group consistency of decision makers’ preference in big data environment of the major emergencies decision-making, a method of two-stage risky emergency decision for large group based on the UGC big data mining is proposed in this paper. First, public preference information about events is obtained from UGC through data mining and natural language processing, and the emergency decision attribute system is constructed through TF-IDF method which is combined with expert evaluation information to determine attribute weights; Secondly, an open two-stage decision-making process is put forward to quantify the decision-making risk according to the reliability and accuracy of decision makers’ opinion, using the clustering method to get the corresponding membership weight and using TOPSIS method to rank alternatives. Finally, the case analysis and comparison of the “8 · 12”major explosion in Tianjin Port verify the feasibility and effectiveness of the proposed method.

The Emergency Supplies Redistribution Considering Perception Satisfaction of Victims on Both Sides

LI Huai-ming, WANG Jia-mei, ZHANG Lei

2019, 28(12):  46-54.  DOI: 10.12005/orms.2019.0271

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Emergency events often cause secondary disasters, before the large-scale external emergency resources, giving full play to the advantages of regional mutual rescueand sharing the emergency resources of the primary disaster sites for resource redistribution is one of the significant means to respond to the secondary disasters in time. This paper attempts to integrate the psychological factors of disaster victims into the supplies redistribution. Based on the prospect theory, this paper proposed the perceived satisfaction model of the primary disaster victims,described the perceived satisfaction of the secondary disaster victims with the survival probability curve, and a multi-objective optimization model considering the perception satisfaction of disaster victims on both sides was constructed by sharing the emergency resources of the primary disaster sites to support the secondary ones.In order to improve the efficiency of the model solution, the multi-objective particle swarm optimization(pso)algorithm is improved by introducing the zoom coefficient and the check function constraint. Finally, an example is given to verify the feasibility and scientificity of the model and algorithm, which provides decision support for emergency management with chain reaction.

Optimal Route Selection of Express Delivery Based on Road Congestion and Customer Time Requirements

FAN Xiang-yu, LIANG Ri-li, WU Xiao-ping

2019, 28(12):  55-61.  DOI: 10.12005/orms.2019.0272

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Aiming at the problem of ineffective temporary shortest distribution path caused by road congestion such as holidays, this paper proposes an optimal route selection model for distribution network, and designs an algorithm to solve the key edges and optimal path of express distribution network. Firstly, the key edges of the whole network are calculated and the characteristics of distribution network are mastered. Secondly, considering the customer’s time requirement, the optimal path under incomplete information(interruption can not be predicted in advance, only when it reaches the starting point of interruption edge)is studied. According to the new characteristics of each side of the shortest path, a set of reserve paths corresponding to each side after interruption are calculated, and then the paths with transportation time less than or equal to the waiting time of customers are selected as the effective paths. Considering road congestion, the optimal paths are selected from the effective paths. Finally, according to the actual situation of distribution network, the optimal paths are selected. An example is given to analyze the optimal path.

Research on Supply Chain Coordination of Fresh Agricultural Products Based on Option Contract under Retailer’s Risk Aversion

TANG Zhen-yu, LUO Xin-xing, CHEN Xiao-hong

2019, 28(12):  62-72.  DOI: 10.12005/orms.2019.0273

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Food is the paramount necessity of the people, with the improvement of living standards, the importance of fresh agricultural products in the consumption structure is becoming more and more prominent. This paper introduces the idea of options into the supply chain of fresh agricultural products, for a two-level fresh agricultural product supply chain consisting of a supplier and a retailer, combining the natural attributes of fresh produce, considering the impact of in-transit loss on quantity and the impact of fresh-keeping inputs on freshness, the CvaR model is applied to study the influence of the retailer's risk aversion degree on the supply chain decision-making and the option contract coordination mechanism. The results show that the option mechanism can realize the risk sharing between the supplier and the demander, solve the coordination problem of fresh agricultural products supply chain under stochastic demand and distribute the whole profit rationally. The system coordination and pareto improvement can be achieved at the same time when the risk aversion of retailers is low.

Analyzing the Effect of Government Subsidy on the Low-carbon Supply Chain Based on Outsourcing Manufacturing

XIA Xi-qiang, HUANG Wen-xin

2019, 28(12):  73-80.  DOI: 10.12005/orms.2019.0274

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In order to analyze the influence of government subsidy strategy on the low-carbon supply chain competition, the game model is established among a manufacturer, outsourcing manufacture and a retailer based on outsourcing manufacturing of low-carbon product. Based on this model, the effects of three different government subsidy policies between the two products is contrastively analyzed. The results are as follows through the studying: the unit outsourcing manufacturing price is more than the unit outsourcing manufacturing price, when government subsidizes low-carbon product through the vendor or the common product manufacturer; when government subsidizes the low carbon product manufacturer, i.e., the low carbon product manufacturer could transfer the government subsidies through increasing the unit outsourcing manufacturing price; when government does not subsidize the low carbon product manufacturer, government subsidy strategy has no effect on the unit wholesale price and the unit retail price of ordinary products, but it will reduce the sales volume of ordinary products and increase the sales volume of low-carbon products. Although government subsidies reduce the profit of ordinary products, they increase the profit of low-carbon greater than the reduced profit of ordinary products, i.e., government subsidies could increase the profits of two product manufacturer and sellers; The government subsidy strategy reduces the environmental impact on the two sides, increasing both the consumer and social surplus.

Incomplete Interval Cooperative Gamesand Its Application in Farmland Pollution Control

CHUN Sheng-ui, JIAN Lin

2019, 28(12):  81-86.  DOI: 10.12005/orms.2019.0275

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interval cooperative game with incomplete profit value of coalition, the concept of incomplete interval cooperative game is defined. Based on the superadditivity of cooperative game, the consistency verification model of the interval profit value of coalition is established. By constructing the deviation between positive and negative ideal distribution and imputation vector, the interval Ideal-Shapley value solving model of incomplete interval cooperative game is given, and the rationality and existence of interval Ideal-Shapley value are analyzed. The above-mentioned model is used to solve the cost-saving allocation strategy for the joint treatment of agricultural land pollution, and the validity of the interval Ideal-Shapley value solution model is verified.

Research on the Tripartite Game in Quality Supervision of Safety Assessment Service

LIU Su-xia, CHENG Yao, MEI Qiang

2019, 28(12):  87-94.  DOI: 10.12005/orms.2019.0276

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Quality supervision of safety assessment service is an important way to effectively prevent enterprises with poor safety condition from engaging in production and operation activities and thereby to raise the effectiveness of safety regulation. In order to find out the effective way to restrict the immoral behaviors of safety assessment organizations, taking all agents in the safety assessment service market as the research object and considering low service quality of safety assessment and low effectiveness of quality supervision, the tripartite static game model among local safety supervision authorities, safety assessment organizations and enterprises of high-risk industries under incomplete information is built. The equilibrium solution of the model was analyzed. From the interest realization mechanism, the key ways to formulate regulatory countermeasures to effectively guarantee the quality of safety assessment services is explored. The results show that the actions of local safety supervision authorities, safety assessment organizations and enterprises depends mainly on the direct compliance costs, penalties for violations as well as exposure probability of violations. The conclusions and policy recommendations of this study are of guiding significance for enhancing service quality of safety assessment in our country.

Evolutionary Game Analysis of Cooperative Communication Mechanism between Dairy Enterprises and Distributors Based on Quality and Safety Input

WANG Lei

2019, 28(12):  95-105.  DOI: 10.12005/orms.2019.0277

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The paper discusses the relation of evolutionary game between dairy product enterprises and dealers from objective requirement of our government to establish defect dairy product recall system as soon as possible. On the basis of cooperation strategy of dairy product enterprises and dealers, we analyze a long term evolutionary trend between dairy product enterprises and dealers on bounded rationality with evolutionary game. Then we use the Matlab 6.0 software to simulate the research results. The studies show that it is helpful to build cooperative relation’s stability of dairy product enterprises and dealers, including reducing costs of dealer’s ‘quality and safety input’, dairy products enterprise’s ‘building communication mechanism’ and enhancing dealer’s additional benefits. Under the ‘no input in quality and safety’ strategy, dairy companies should increase failure costs, adopting ‘no establishment in communication mechanism’. Under the ‘setting up a communication mechanism’ strategy, dealers should increase necessary penalty, adopting ‘no input in quality and safety’. Under the ‘no establishment in communication mechanism’ strategy, loss of dairy companies made by dealers increases. The above all contribute to the building of the system of cooperation and communication between the dairy companies and dealers.

Generalized Trapezoidal Fuzzy Number Density Weighted Operator and Its Application

WANG Lu, YI Ping-tao, LI Wei-wei, LIU Jun

2019, 28(12):  106-111.  DOI: 10.12005/orms.2019.0278

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the problem ofmulti-attribute decision makingwith fuzzy language information as generalized trapezoid fuzzy number,this paper proposes an aggregation approach called generalized trapezoid fuzzy number density weighted(TF-DWA)operator. In the aggregation process, we firstly introducethe generalized trapezoid fuzzy number density weighted operator and its synthetic operators. Moreover, the primary properties of the operator are analyzed. Then, the grouping problem of the generalized trapezoid fuzzy number is discussed and a clustering method based on centroid ranking index value is given.Based on this, density-weighted vectors are solved based on entropy method. At last, the application of generalized trapezoid fuzzy number density aggregation operator is illustrated by a numerical example.

An Improved K-Modes Clustering Algorithm

SHI Zhen-quan, CHEN Shi-ping

2019, 28(12):  112-117.  DOI: 10.12005/orms.2019.0279

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The traditional K-modes algorithm, the simplematching dissimilarity measure, is used to compute the distance between two values of the samecategorical at tributes. This compares two categorical values directly and results in either a differenceof zero when the two values are identical or one if otherwise. However it ignores the differences among the attributes. In this paper, we studyan attribute weighting algorithm based on rough set and knowledge granulation. This algorithm not only overcomes the redundancy of attributes, but also takes into account the differences among attributes. Attributes weightingin the traditional K-modes algorithm are used to improve the K-modes algorithm to ignore the difference between attributes. Compared with other K-Modes clustering algorithms, the results show that the new algorithm is more effective.

Application Research

Study on the Carbon Emission of E-logistics “Last Mile” Delivery

XUE Xing-qun, WANG Xu-ping, ZHAN Lin-min

2019, 28(12):  118-123.  DOI: 10.12005/orms.2019.0280

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Logistics costs a lot of energy. The rapid development of e-commerce has made e-logistics become one of the most important parts of social logistics in recent years. Thus decreasing the carbon emission in each link of E-logistics is beneficial to protecting the environment and improving the quality of people’s lives. This article aims to study the impacts on the environment of different “last mile” delivery modes (delivery to doorstep, reception box and delivery-and-collection points). Improved Vehicle Routing Problem and K-means models are used to optimize the energy dissipation of each mode considering the vehicle loading. Then we calculate the carbon emission according to all kinds of energy dissipation of each mode. At last, this article compares the competitiveness of three delivery modes from the perspective of environmental protection and analyzes the principle elements that affect the carbon emission of each mode. It is found that different delivery modes produce different amount of carbon emissions, and the main influence factors are different completely. Reception box produces the largest carbon emission owing to the power consumption of machines; the carbon emission of delivery to doorstep is related to the vehicle modes closely; and the carbon emission of delivery-and-collection points mainly depends on the transport modes that customers travel. This article provides some important suggestions for the development of the “last mile” delivery from the view of environmental protection.

Research on The Measure of Information Loss in Composite Evaluation of Water Resource Allocation Schemes

SUN Dong-ying, SHE Jing-wen, CHU Yu, XU Ye-jun, WANG Hui-min

2019, 28(12):  124-129.  DOI: 10.12005/orms.2019.0281

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The characterof multiple attributes in water resource allocation makes the ranking of schemes incompletely consistent by using different aggregating methods. This paper discusses the quantity of information loss from given decision-making metrics to ranking results. Then information entropy theory and Spearman’s rank correlation coefficient are adopted to measure information loss in evaluation of water resource allocation schemes and the Shannon-Spearman measure is proposed. Six composite evaluation models are constructed by combining two weight sets(weight based on entropy and weight based on evidence theory)and three evaluation models (namely sample additive weighting, fuzzy selection method and TOPSIS). Finally, the Shannon-Spearman measure is adopted to calculate information loss in the process of composite evaluation of Tianjin water resource allocation schemes. And composite evaluationresultsare compared with a given composite evaluation model in reference. The results show that the result from combining weight based on entropy and fuzzy selection method obtains the least absolute/relative information loss in seven results. Through the measure of information loss in evaluation of water resource allocation schemes, it could make evaluation process more transparent and provide policy-making departmentwith decision support for choosing ideal composite evaluation method of water resource allocation schemes.

Research on B2C Retailer Return Channel Strategy

ZHAO Ju, ZHANG Qiang, CHENG Wei-jia

2019, 28(12):  130-136.  DOI: 10.12005/orms.2019.0282

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Based on the omni-channel environment, we consider the B2C retailer to provide a full refund guarantee, establish a game model under the same channel return strategy and omni-channel return strategy, and study the retailer return channel strategy selection problem. The results show that under the omni-channel return strategy, retailers always implement high-price strategies, and when consumers return losses with the same channel is high, the optimal pricing will increase with the return of consumers with the same channel, and vice versa; when retailer return in store product processing cost is small, the omni-channel return strategy can effectively increase consumer demand, and the implementation of the omni-channel return strategy is dominant; from the consumer’s point of view, when the product match rate and the consumer’s same channel return loss are at a higher level, retailers will implement an omni-channel return strategy.

Choice of Consumer Returns Policy in Opaque Selling

YANG Hui, GE Lei, LI Yan-rong, SUN Fei

2019, 28(12):  137-143.  DOI: 10.12005/orms.2019.0283

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This paper studies whether the opaque sellers can apply the full return policy as an effective tool to win competitive advantage in retailing markets. We consider two channel structures: one has a monopoly opaque seller and a manufacturer as channel members, and the other has an opaque seller, a regular seller and a manufacturer as members. For either structure, we construct Stackelberg game models, provide the unique equilibrium, and bring up the conditions of offering full return policy for the opaque seller. Furthermore, we investigate how to set the opacity parameter for monopoly retailer, and how the market differentiates in the case of retailer competition. We also study the function of net salvage value in the choice of consumer returns policy. We discuss the impact of full return policy on profits, demand and pricing when the net salvage value is positive. Our study provides theoretical support for opaque sellers in customer return policy decision and pricing decision.

A Study of Price Discovery of HS300 Index Futures in China

HUANG Jin-bo, WU Li-li, HU Rong

2019, 28(12):  144-152.  DOI: 10.12005/orms.2019.0284

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Using five minutes high frequency data of HS300 stock index spot and futures, this paper apply Granger causality test, vector auto-regression model, Johansen cointegration test and vector error correction model to analyse HS300 stock index futures pricing capabilities under different trends. The empirical results demonstrate that firstly futures returns is Granger causality of spot return, while spot return is not Granger causality of futures returns in the rising trend, and there is bidirectional Granger causality between spot return and futures return in the decline trend. Secondly, regardless of increasing or decreasing trend, futures market is always in a dominant position for price discovery capabilities. Finally, a long-run equilibrium exists between futures and spot prices, and futures price leads spot price returning to the equilibrium when they are not in equilibrium.

Transfer Payment and Public Expenditure Behavior ——Based on the Analyses of Panel Threshold Effect

ZHU Guang, BAO Shu-guang

2019, 28(12):  153-161.  DOI: 10.12005/orms.2019.0285

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Employing the county-level data from 1994 to 2007, viewing the fiscal self-sufficiency rate as the threshold variable and based on the Dual Panel Threshold Model, this thesis analyzes the non-linear relationships between the transfer payments and local public expenditures in our country. The findings demonstrate that there exists significant threshold effect among the effects of transfer payments on the local public expenditures; transfer payments facilitate the capital construction expenditures and the administration expenditures more significantly , and to an extent, strengthen the distortion in the behavior choices as well as in the public expenditure structure on the part of local governments. Regional disparities exist among the effects of transfer payments on public expenditures; transfer payments can not effectively encourage the economic less-developed regions to provide basic public services, and thus in some sense, transfer payment system is incompatible with the goal incentives arising from the equalization of basic public services.

Research on Evaluation of Urban Green Transformation Effect ——Take Huainan City as an example

DING Zhao-gang, DUAN Chuan-qing, HONG Tian-qiu

2019, 28(12):  162-169.  DOI: 10.12005/orms.2019.0286

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The green transformation of the city is an important way to cope with climate change and increase the city’s sustainable competitiveness. On the basis of clarifying the essence of green economy and green city transformation, this paper constructs a comprehensive evaluation index system of the urban green transformation effect featuring the integration of “green driving force, green productivity and green vitality”. This paper constructs a fuzzy comprehensive evaluation model by using the method of Maximum Deviation to objectively determine the weight of the indicatior and improve the optimization model. Taking the resource-based city of Huainan as the research object for model verification, this paper, according to the in-depth analysis of the evaluation results, puts forward countermeasures and suggestions for the green transformation and leapfrong development of coal resource-based citied, and the research results can porvide the corresponding decision-making basis for the relevant formulation and adjustment of relevant government policies.

Dynamic Evaluation of Regional Carbon Efficiency Based on Combined Weighting of Level Difference Maximization and TOPSIS Grey Incidence Projection Method

YU Peng, MA Heng, ZHOU Fuli

2019, 28(12):  170-177.  DOI: 10.12005/orms.2019.0287

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Focused on traditional carbon efficiency evaluation, more attention is paid to economic output. The paper builds an evaluation indicator system for carbon efficiency from the perspective of economy, welfare, and population. The TOPSIS, grey incidence theory and vector projection method are introduced into evaluation of carbon efficiency. The paper assigns weights to evaluation indicators by using level difference maximization. In order togive weight to time series, this research introduces the time variable, uses time-series arithmetic average operator to integrate two weights into a dynamic evaluation model. An empirical study using the Pan-Yangtze River Delta region as an example shows that there are significant differences in carbon efficiency in the region. The development of the Yangtze River Delta region is not balanced. The research suggests that the strategic advantages and development potentials of the regions should be fully exploited to achieve synergy and achieve a low-carbon economy.

Manage ment Science

Uniform Parallel Machine Scheduling Problem with Machine Cost to Minimize the Maximal Lateness

LI Kai, YANG Yang, LIU Bo-hai

2019, 28(12):  178-184.  DOI: 10.12005/orms.2019.0288

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In this paper, we assume the using cost of machines cost is fixedand study the uniform parallel machine scheduling problem considering the using cost of machines. The goal is to minimize the maximum lateness whose total cost does not exceed a given budget. A mixed integer programming model is established for this problem. To minimize the maximum lateness, we design the rule to select suitable machines in all the machines. Then we propose an improvement of the traditional LPT(Longest Processing Time First)algorithm, ECT(Earliest Completion Time First) algorithm,and EDD(Earliest Due Date First) algorithm. A heuristic algorithm named H is designed. The worst error bounds of the algorithm under parallel machine and uniform parallel machine are also analyzed theoretically. By giving two examples, we illustrate the implementation of the algorithm. Finally, a variety of total cost budgets are considered and the effectiveness of the algorithm is verified by a large number of random data experiments.

Research on the Influencing Factors of Free Trial Contribution in Online Brand Community

LI Yang, YAN Jian-yuan, QIN Fen, LI Kai, FENG Miao

2019, 28(12):  185-193.  DOI: 10.12005/orms.2019.0289

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In recent years, many online brand communities have launched free trial activities in order to obtain the initial word-of-mouth of new products. Previous researches mostly focus on the promotional effect of free trial under the background of third-party platform. The research on free trial contribution behavior in online brand communities is still very limited. This study collects 323 trial reports and personal home page information of the adopters during 66 free trial activities, examines the impact of social presence, social learning, user level and perceived scarcity on trial contribution quantity and quality through OLS and negative binomial regression analysis. In addition, this study divides the adopters into two types: high participation and low participation according to the preliminary application records and reveals a significant difference between different participants in free trial contribution quality. The reasons for the difference in the quality of trial contribution are analyzed through grouped regression. This study enriches the research perspective of free trial, which also provides practical help for enterprises to identify high quality adopters.

Effect of Marginal Cost Change on Technological Innovation Based on Stackelberg Model

MA Yong-hong, LI Yan-rui

2019, 28(12):  194-199.  DOI: 10.12005/orms.2019.0290

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Based on the game of retailer Stackelberg, using backward induction, the relationship between marginal cost rate of change and corporate profits after technological innovation is analyzed, and then the issue of how to choose technological innovation strategy according to the marginal cost rate of change is discussed. The three-stage game model is established from the perspective of marginal cost change caused by technological innovation. In the first stage of the game, enterprises judge the feasible range of the increase of marginal cost after technological innovation;The second stage is the decision-making of product distribution price after technological innovation; In Stage 3, retailers compete in the product market to determine production. The results show that when there are no capacity constraints, the enterprises are more willing to innovate at low cost. On the other hand, when the marginal cost increases at more than 30%, since high costs can not lead to more profit, enterprises would rather choose not to innovate.