Research on sales and sharing decisions of the equipment supplier under shared manufacturing environment
Industrial Management & Data Systems
ISSN: 0263-5577
Article publication date: 30 November 2023
Issue publication date: 30 January 2024
Abstract
Purpose
With the rapid development of the sharing economy in manufacturing industries, manufacturers and the equipment suppliers frequently share capacity through the third-party platform. This paper aims to study influences of manufacturers sharing capacity on the supplier and to analyze whether the supplier shares capacity as well as its influences.
Design/methodology/approach
This paper deals with conditions that the supplier and manufacturers share capacity through the third-party platform, and the third-party platform competes with the supplier in equipment sales. Considering the heterogeneity of the manufacturer's earning of unit capacity usage and the production efficiency of manufacturer's usage strategies, this paper constructs capacity sharing game models. Then, model equilibrium results under different sharing scenarios are compared.
Findings
The results show that when the production or maintenance cost is high, manufacturers sharing capacity simultaneously benefits the supplier, the third-party platform and manufacturers with high earnings of unit capacity usage. When both the rental efficiency and the production cost are low, or both the rental efficiency and the production cost are high, the supplier simultaneously sells equipment and shares capacity. The supplier only sells equipment in other cases. When both the rental efficiency and the production cost are low, the supplier’s sharing capacity realizes the win-win-win situation for the supplier, the third-party platform and manufacturers with moderate earnings of unit capacity usage.
Originality/value
This paper innovatively examines supplier's selling and sharing decisions considering manufacturers sharing capacity. It extends the research on capacity sharing and is important to supplier's operational decisions.
Keywords
Acknowledgements
The authors would like to thank the editors and the anonymous referees for their invaluable suggestions and detailed comments, which help us to improve the quality of this paper. This work was supported by the Natural Science Foundation of China (Grant No. 72072016), Major Program of the National Social Science Foundation of China (Grant No. 20&ZD084), the Science and Technology Research Program of Chongqing Municipal Education Commission (Grant No. KJQN202300825, Grant No. KJQN202300827).
Citation
Li, W., Dan, B., Zhang, X., Liu, Y. and Sui, R. (2024), "Research on sales and sharing decisions of the equipment supplier under shared manufacturing environment", Industrial Management & Data Systems, Vol. 124 No. 2, pp. 583-611. https://doi.org/10.1108/IMDS-05-2023-0318
Publisher
:Emerald Publishing Limited
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