Service-based Capacity Strategy for Manufacturing Service Duopoly of Differentiated Prices and Lognormal Random Demand

• Main Authors: Hsien-Jung Chung, 鍾顯榮
• Other Authors: Yon-Chun Chou
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/08565522843823528732

碩士 === 臺灣大學 === 工業工程學研究所 === 95 === Globalization of production has ushered in vibrant manufacturing service industries. Many high-technology manufacturing service firms are no longer small shops on the receiving end of outsourced jobs. Instead, they frequently take initiative to forge supply relationships with product firms. In these engineering-manufacturing chains, certainty of capacity supply is an important concern as conservative (insufficient) capacity expansion is frequently prompted by high uncertainty of demand and investment risk. Capacity strategy has traditionally been discussed from a manufacturer’s perspective to time or size the investment, or to compete in a game setting. In the era of manufacturing services, customers’ concern of capacity (supply) certainty should be included as an important factor in formulating a capacity strategy. This paper presents a mathematical analysis of this new aspect. Uncertain demand is modeled as a lognormal random variable. A novel service-based demand rationing rule is developed for a duopoly of differentiated prices and lognormal random demand. Through numerical calculation, this paper shows the equilibrium of capacity strategy of the duopoly and analyzes their competition behavior on capacity services.