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Yucai Wu, lecturer of Faculty of Business Administration, Shanxi University of Finance & Economics, received a doctor's degree in management from Shanxi University; his main research direction is supply chain and operation management.
Excellent service plays a vital role in the sustainability of enterprise and supply chains development in today's increasingly fierce market competition. However, due to the inevitable spillover effect in the competitive network, enterprises' initiative to improve the service level is reduced. From the perspective of negative spillover effect, optimization and decision-making in the competitive network of retailer-dominated supply chain are examined in this study. Considering four competitive situations in practical operation management, the corresponding double-layer compound nested Stackelberg game models are constructed, and the optimal equilibrium solutions are derived. Employing comprehensive comparison and analysis of the results, it is found that when the negative spillover effect of service increases, the optimal profit and service level of the leading supply chain or its retailers decrease, and the optimal retail price and overall optimal profit also gradually decline. For the leading supply chain, the centralized decision-making can achieve higher profits, and also more willing to improve the level of service. However, for the following supply chain, when the negative spillover effect of service is weak, the optimal service level under decentralized decision is higher, while when the spillover effect of service is strong, the optimal service level under integrated decision is higher. In addition, the supply chain-to-chain competition can bring negative incentives to the retailer that provides services, while for the rival that does not provide services, it can generate a certain free-riding effect that benefits them, and the effect is enhanced with the increase of competition.
Yucai Wu; Jiguang Wang; Lu Chen. Optimization and Decision of Supply Chain Considering Negative Spillover Effect and Service Competition. Sustainability 2021, 13, 2320 .
AMA StyleYucai Wu, Jiguang Wang, Lu Chen. Optimization and Decision of Supply Chain Considering Negative Spillover Effect and Service Competition. Sustainability. 2021; 13 (4):2320.
Chicago/Turabian StyleYucai Wu; Jiguang Wang; Lu Chen. 2021. "Optimization and Decision of Supply Chain Considering Negative Spillover Effect and Service Competition." Sustainability 13, no. 4: 2320.
Nowadays, the green supply chain has become an exciting concept in academic societies. This paper focuses on the optimal production decisions of two competing supply chains from the perspective of green degree. The manufacturers in each supply chain have two options—producing a green product or a non-green product. Game theory is applied to study four decision scenarios, which are derived from the difference in the products of the two supply chains. This study investigates the influence of inter-supply-chain competition on the wholesale price, green degree, and profits of the supply chain members. The results indicate that the inter-supply-chain competition has a negative correlation with the wholesale price. The inter-supply-chain competition has a significant impact on green degree in the four decision scenarios. In addition, green products are not always the dominant strategy of manufacturers. Both the competitors’ product decisions and the degree of inter-supply-chain competition should be considered. Finally, weak inter-supply-chain competition is beneficial to the leader supply chain, while strong competition is beneficial to the follower supply chain.
Jiguang Wang; Jianhong Chang; Yucai Wu. The Optimal Production Decision of Competing Supply Chains When Considering Green Degree: A Game-Theoretic Approach. Sustainability 2020, 12, 7413 .
AMA StyleJiguang Wang, Jianhong Chang, Yucai Wu. The Optimal Production Decision of Competing Supply Chains When Considering Green Degree: A Game-Theoretic Approach. Sustainability. 2020; 12 (18):7413.
Chicago/Turabian StyleJiguang Wang; Jianhong Chang; Yucai Wu. 2020. "The Optimal Production Decision of Competing Supply Chains When Considering Green Degree: A Game-Theoretic Approach." Sustainability 12, no. 18: 7413.
In today’s complex market competition environment, a high quality and high level of service plays a critical role in obtaining and maintaining long-term sustainable competitive advantage for enterprises and supply chains. Considering the service negative spillover effect, this paper investigates the horizontal Stackelberg competition and optimal service decision in two competing manufacturer-led supply chains. Four competitive structure models are constructed and the corresponding equilibrium solutions are obtained. By comparing the equilibrium results of four different structures, it is found that the service negative spillover effect and competition between supply chains have negative incentive effect on service providers and their supply chains. However, the chain-to-chain competition will benefit the supply chain that does not provide services from free-riding effect, which will be intensified with the intensification of competition. In addition, from the perspective of supply chain network and externality, we find that when the structure of one supply chain remains fixed and the other changes from centralized to decentralized, there will be a “double marginalization” effect. At the same time, the structural change from centralized to decentralized has certain “altruism”, that is, positive network externality, so as to improve the rival’s performance significantly.
Yucai Wu; Jiguang Wang; Changhong Li. Decisions of Supply Chain Considering Chain-to-Chain Competition and Service Negative Spillover Effect. Sustainability 2019, 11, 1612 .
AMA StyleYucai Wu, Jiguang Wang, Changhong Li. Decisions of Supply Chain Considering Chain-to-Chain Competition and Service Negative Spillover Effect. Sustainability. 2019; 11 (6):1612.
Chicago/Turabian StyleYucai Wu; Jiguang Wang; Changhong Li. 2019. "Decisions of Supply Chain Considering Chain-to-Chain Competition and Service Negative Spillover Effect." Sustainability 11, no. 6: 1612.
Today’s business environment is complex, dynamic, and uncertain which makes a supply chain facility increasingly vulnerable to disruption from various risk accidents as one of the main threats to the whole supply chain’s operation. However, in general, most of the studies on facility location problems assume that the facilities, once built, will always run availably and reliably. In fact, although the probability is very low, supply chain disruptions often incur disastrous consequences. Therefore, it is critical to account for disruptions during designing supply chain networks. To accomplish planned outcomes and greater supply chain resiliency, this article proposes a continuous approximation approach based on regular hexagon partition to address the reliable facility location problems with consideration of facility disruptions risk. The optimization goal is to determine the best facility location that minimizes the expected total system cost on the premise that the supply chain network is not disrupted as a whole when one or some facilities are subject to probabilistic failure. Our numerical experiment discusses the performance of the proposed solution approaches which demonstrates that the benefits of considering disruptions in the supply chain design can be significant. In addition, considering the impact of disruption probability estimation error on the optimal decision, the misestimating of the disruption probability is also investigated in this paper.
Jiguang Wang; Yucai Wu. A Continuous Approximation Approach Based on Regular Hexagon Partition for the Facility Location Problem under Disruptions Risk. Complexity 2019, 2019, 1 -12.
AMA StyleJiguang Wang, Yucai Wu. A Continuous Approximation Approach Based on Regular Hexagon Partition for the Facility Location Problem under Disruptions Risk. Complexity. 2019; 2019 ():1-12.
Chicago/Turabian StyleJiguang Wang; Yucai Wu. 2019. "A Continuous Approximation Approach Based on Regular Hexagon Partition for the Facility Location Problem under Disruptions Risk." Complexity 2019, no. : 1-12.
The classical location models implicitly assume that the facilities, once built, will always operate as planned. However, some of the facilities may become unavailable from time to time due to disruptions which highlight the urgent need to effectively manage supply chain disruptions in spite of their low probability of occurrence. Therefore, it is critical to take account of disruptions when designing a resilient supply chain network so that it performs well as a whole even after an accidental disruption. In this paper, a stylized facility location problem is considered in a continuous plane which is solved through an improved Voronoi-diagram-based algorithm under disruption risks. The research problem is to minimize the total cost in normal and failure scenarios. Furthermore, the impact of misestimating the disruption probability is also investigated. The results numerically show that although the estimated disruption probability has a significant impact on the facilities configuration, it has a minor impact on the total quantity of facilities and the expected total cost. Therefore, this paper proposes that the decision-maker should moderately overestimate disruption risk based on the “pessimistic principle”. Finally, the conclusion considers managerial insights and proposes potential areas for future research.
Jiguang Wang; Yucai Wu. An Improved Voronoi-Diagram-Based Algorithm for Continuous Facility Location Problem under Disruptions. Sustainability 2018, 10, 3099 .
AMA StyleJiguang Wang, Yucai Wu. An Improved Voronoi-Diagram-Based Algorithm for Continuous Facility Location Problem under Disruptions. Sustainability. 2018; 10 (9):3099.
Chicago/Turabian StyleJiguang Wang; Yucai Wu. 2018. "An Improved Voronoi-Diagram-Based Algorithm for Continuous Facility Location Problem under Disruptions." Sustainability 10, no. 9: 3099.
This paper investigates the horizontal Nash game and structure selection strategy in two competing dominant enterprises. Each firm decides whether to outsource the retail or manufacture to the exclusive third-party enterprise and thus forms a decentralized supply chain structure. On the premise that third-party enterprises have no advantage on sales and manufacture cost, the revenue-sharing contract is introduced between the manufacturer and retailer, and the influence of decentralized structure on the game equilibrium structure and supply chain profit is analyzed based on Hotelling model. The results show that, when compared with centralized structure, decentralized supply chain has the structural advantage to improving not only its supply chain profits but also the competing chain. This interesting insight is counterintuitive to the common “double marginalization” effect and explains the outsourcing strategy from the perspective of supply chain competition. In addition, we find the dominant strategy in the evolutionary game is that both two chains are decentralized or integrated.
Yucai Wu; Jiguang Wang; Changhong Li; Kan Su. Optimal Supply Chain Structural Choice under Horizontal Chain-to-Chain Competition. Sustainability 2018, 10, 1330 .
AMA StyleYucai Wu, Jiguang Wang, Changhong Li, Kan Su. Optimal Supply Chain Structural Choice under Horizontal Chain-to-Chain Competition. Sustainability. 2018; 10 (5):1330.
Chicago/Turabian StyleYucai Wu; Jiguang Wang; Changhong Li; Kan Su. 2018. "Optimal Supply Chain Structural Choice under Horizontal Chain-to-Chain Competition." Sustainability 10, no. 5: 1330.
The classical location models implicitly assume that the facilities, once built, will always operate as planned. However, some of the facilities may become unavailable from time to time due to disruptions caused by natural disasters, key-supplier bankruptcy, terrorist attacks, or labor strikes. Therefore, supply chain disruptions have gained considerable attention by researchers and practitioners in the past few decades. The catastrophic accidents highlighted the urgent need for effective solutions to manage supply chain disruptions in spite of their low probability of occurrence. Therefore, it is critical to take account of disruptions when designing supply chain networks so that they perform well as a whole even after a disruption. Taking into account the random disruption risk, this paper proposes a mixed integer programming model for the reliable facility location problem. This model try to minimize the sum of initial facility construction costs and expected transportation costs in both the regular and the failure scenarios, and present a Lagrange relaxation algorithm to solve it. This paper also analyzes the algorithm’s solving performance by a numerical experiment.
Jiguang Wang; Kan Su; Yucai Wu. The Reliable Facility Location Problem Under Random Disruptions. Wireless Personal Communications 2018, 102, 2483 -2497.
AMA StyleJiguang Wang, Kan Su, Yucai Wu. The Reliable Facility Location Problem Under Random Disruptions. Wireless Personal Communications. 2018; 102 (4):2483-2497.
Chicago/Turabian StyleJiguang Wang; Kan Su; Yucai Wu. 2018. "The Reliable Facility Location Problem Under Random Disruptions." Wireless Personal Communications 102, no. 4: 2483-2497.