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Research on sales and sharing decisions of the equipment supplier under shared manufacturing environment

Wenbo Li (School of Economics and Business Administration, Chongqing University, Chongqing, China) (Chongqing Key Laboratory of Logistics at Chongqing University, Chongqing, China)
Bin Dan (School of Economics and Business Administration, Chongqing University, Chongqing, China) (Chongqing Key Laboratory of Logistics at Chongqing University, Chongqing, China)
Xumei Zhang (School of Economics and Business Administration, Chongqing University, Chongqing, China) (Chongqing Key Laboratory of Logistics at Chongqing University, Chongqing, China)
Yi Liu (School of Business Administration, Chongqing Technology and Business University, Chongqing, China)
Ronghua Sui (School of Business Administration, Chongqing Technology and Business University, Chongqing, China)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 30 November 2023

Issue publication date: 30 January 2024

164

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

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Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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