A Dynamic Evolutionary Game Model of Modular Production Network

As a new organization mode of production in the 21st century, modular production network is deemed extensively to be a source of competitiveness for lead firms in manufacturing industries. However, despite the abundant studies on the modular production network, there are very few studies from a dyna...

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Main Author: Wei He
Format: Article
Language:English
Published: Wiley 2016-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2016/6425158
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author Wei He
author_facet Wei He
author_sort Wei He
collection DOAJ
description As a new organization mode of production in the 21st century, modular production network is deemed extensively to be a source of competitiveness for lead firms in manufacturing industries. However, despite the abundant studies on the modular production network, there are very few studies from a dynamic perspective to discuss the conditions on which a modular production network develops. Based on the dynamic evolutionary game theory, this paper constructs a model, which incorporates several main factors influencing the development of modular production network. By calculating the replicator dynamics equations and analyzing the evolutionary stable strategies, this paper discusses the evolution process of cooperation strategies of member enterprises in a modular production network. Furthermore, by using NetLogo software to simulate the model, this paper verifies the effectiveness of the model. From the model, we can find that the final stable equilibrium strategy is related to such factors as the initial cost, the extra payoff, the cooperation willingness of both parties, the cooperation efforts, and the proportion each party can get from the extra payoff. To encourage the cooperation of production integrator and modular supplier, some suggestions are also provided.
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spelling doaj-art-9e8dabf91b6d49babe1d8cbb2a9acdbf2025-08-20T02:18:32ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2016-01-01201610.1155/2016/64251586425158A Dynamic Evolutionary Game Model of Modular Production NetworkWei He0School of Business Administration, Jiangxi University of Finance and Economics, No. 169, East Shuanggang Road, Changbei, Nanchang, Jiangxi 330013, ChinaAs a new organization mode of production in the 21st century, modular production network is deemed extensively to be a source of competitiveness for lead firms in manufacturing industries. However, despite the abundant studies on the modular production network, there are very few studies from a dynamic perspective to discuss the conditions on which a modular production network develops. Based on the dynamic evolutionary game theory, this paper constructs a model, which incorporates several main factors influencing the development of modular production network. By calculating the replicator dynamics equations and analyzing the evolutionary stable strategies, this paper discusses the evolution process of cooperation strategies of member enterprises in a modular production network. Furthermore, by using NetLogo software to simulate the model, this paper verifies the effectiveness of the model. From the model, we can find that the final stable equilibrium strategy is related to such factors as the initial cost, the extra payoff, the cooperation willingness of both parties, the cooperation efforts, and the proportion each party can get from the extra payoff. To encourage the cooperation of production integrator and modular supplier, some suggestions are also provided.http://dx.doi.org/10.1155/2016/6425158
spellingShingle Wei He
A Dynamic Evolutionary Game Model of Modular Production Network
Discrete Dynamics in Nature and Society
title A Dynamic Evolutionary Game Model of Modular Production Network
title_full A Dynamic Evolutionary Game Model of Modular Production Network
title_fullStr A Dynamic Evolutionary Game Model of Modular Production Network
title_full_unstemmed A Dynamic Evolutionary Game Model of Modular Production Network
title_short A Dynamic Evolutionary Game Model of Modular Production Network
title_sort dynamic evolutionary game model of modular production network
url http://dx.doi.org/10.1155/2016/6425158
work_keys_str_mv AT weihe adynamicevolutionarygamemodelofmodularproductionnetwork
AT weihe dynamicevolutionarygamemodelofmodularproductionnetwork