2014Unpublished venueRequires access

Study on Investment Cost Sharing Game in OEM Supply Chain Considering Quality Influence Demands

Jiang Jin-d

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Abstract

Based on an OEM supply chain system in which quality influences demands,the paper offers the optimal strategy of brand company and manufacturer under the centralized and decentralized decision-making.In the situation of the investment cost sharing,with the investment cost sharing ratio increasing,manufacturer's profit is monotonically increasing,and the profits of brand company and the total supply chain first increase and then decrease.The paper obtains the sharing ratio value which makes OEM supply chain total profits maximum,further gives sharing ratio value interval in which the parties can achieve Pareto improvement revenue.Finally,an example verifies the conclusions of the paper.

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What this paper is about

Based on an OEM supply chain system in which quality influences demands,the paper offers the optimal strategy of brand company and manufacturer under the centralized and decentralized decision-making.In the situation of the investment cost sharing,with the investment cost sharing ratio increasing,manufacturer's profit is monotonically increasing,and the profits of brand company and the total supply chain first increase and then decrease.The paper obtains the sharing ratio value which makes OEM supply chain total profits maximum,further gives sharing ratio value interval in which the parties can achieve Pareto improvement revenue.Finally,an example verifies the conclusions of the paper.

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Available abstract

Based on an OEM supply chain system in which quality influences demands,the paper offers the optimal strategy of brand company and manufacturer under the centralized and decentralized decision-making.In the situation of the investment cost sharing,with the investment cost sharing ratio increasing,manufacturer's profit is monotonically increasing,and the profits of brand company and the total supply chain first increase and then decrease.The paper obtains the sharing ratio value which makes OEM supply chain total profits maximum,further gives sharing ratio value interval in which the parties can achieve Pareto improvement revenue.Finally,an example verifies the conclusions of the paper.

Key concepts: Original equipment manufacturer, Supply chain, Business, Revenue sharing, Profit (economics), Cost sharing, Profit sharing, Investment (military)

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