Studying Capacity Expansion Problem with New Product Diffusion Model under Duopoly

• Main Authors: Yue-ru Shih, 施玥如
• Other Authors: Tai-Yue Wang
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/70853460558598353050

碩士 === 國立成功大學 === 工業與資訊管理學系碩博士班 === 96 === Capacity expansion plays an important role in the competitive market. The new product diffusion model is a forecasting model of demand under the concept of product life cycle. Using product diffusion model can predict the demand accurately. If there is only one manufacturer in the market, the manufacturer can expand the capacity through the product diffusion model. But if there are more than two manufacturers in the market, the supply may be higher than the demand. Besides, in the duopoly, the manufacture’s capacity planning decision may be influenced by it competitor. If the supply is higher than the demand, the inventory will affect the price. The more inventories are, the lower price is. This research discusses the capacity expansion problem in the growth stage over the product life cycle. When using the Bass model, the demand can be predicted. Through the forecasting demand, this research can build the capacity planning model and assumes the negative relationship between the inventory and the price. Through the result, we can find the appropriate capacity planning decision while the total supply is higher than total demand. And, we also discuss the manufacturer how to set the price after they expand their capacity.