Title :
The optimal cost-sharing incentive model of main manufacturer-suppliers for complex equipment under grey information
Author :
Chen Hongzhuan ; Fang Zhigeng ; Liu Sifeng ; Ma Shuai
Author_Institution :
Sci. Dev. Res. Center, Nanjing Univ. of Aeronaut. & Astronaut., Nanjing, China
Abstract :
Based on the uncertainty and grey level of suppliers´ efforts, the paper put forward the incentive strategy of main manufacturer sharing the suppliers´ efforts cost, and established the optimal cost-sharing model under grey effort level. The paper calculated Nash equilibrium and Stackelberg equilibrium under the above incentive model, and came to the optimal proportion, the optimal effort level and the optimal income of main manufacturer sharing the supplier´ development cost. It analyzed that the cooperation status between the main manufacturer and suppliers shifts from Nash equilibrium to Stackelberg equilibrium, and effective cost-sharing incentive program can achieve profits to growth and the effort level of the main manufacturer and suppliers to improve, proving that cooperation between the main manufacturer and suppliers achieves the possibility of Pareto improvement.
Keywords :
Pareto optimisation; game theory; grey systems; incentive schemes; profitability; supply chain management; Nash equilibrium; Pareto improvement; Stackelberg equilibrium; complex equipment; cost-sharing incentive program; grey information; incentive strategy; manufacturer sharing; manufacturer suppliers; optimal cost-sharing incentive model; optimal proportion; supplier development cost; supplier efforts; Aircraft; Collaboration; Educational institutions; Games; Nash equilibrium; Supply chains; incentive; main manufacturer-supplier; the cost-sharing;
Conference_Titel :
Grey Systems and Intelligent Services, 2013 IEEE International Conference on
Conference_Location :
Macao
Print_ISBN :
978-1-4673-5247-5
DOI :
10.1109/GSIS.2013.6714833