Quality improvement in competing supply chains |
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Authors: | Gang Xie Shouyang WangK.K. Lai |
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Affiliation: | a Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100190, China b Department of Management Sciences, City University of Hong Kong, Hong Kong |
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Abstract: | In this study, we consider quality improvement in a given segment of the market, shared by two supplier-manufacturer supply chains which offer a given product at the same price but compete on quality. The mechanism on the selection of supply chain structures and quality improvement strategies of the two supply chains is described. In particular, we analyze three possible structure combinations: two integrated supply chains, two decentralized supply chains, and one integrated and one decentralized supply chains. Between the supply chains, Nash's non-cooperative game is implemented. Numerical experiments illustrate the mechanism and some related issues are discussed. |
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Keywords: | Supply chain Competition Coordination Quality improvement |
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