Competitive capacity and price decisions for two build-to-order manufacturers facing time-dependent demands

IEEE Transactions on Systems, Man, and Cybernetics Part A:Systems and Humans

Volumn 40, Issue 3, 2010, Pages 583-595

  Xiao, Tiaojun ^a   Choi, Tsan Ming ^b  

^a NANJING UNIVERSITY   (China)

^b HONG KONG POLYTECHNIC UNIVERSITY   (Hong Kong)

Author keywords

Capacity and pricing decisions; Demand disruption; Game theory; Production optimization; Subcontracting

Indexed keywords

BUILD-TO-ORDER; CAPACITY AND PRICING DECISIONS; CAPACITY INFORMATION; DEMAND CHANGES; FUTURE RESEARCH DIRECTIONS; GAME-THEORETIC MODEL; NASH EQUILIBRIUM; PRICING DECISION; PRODUCTION OPTIMIZATION; RANDOM DEMAND; TIME-DEPENDENT DEMAND; UNIT PRODUCTION COST;

GAME THEORY; MANUFACTURE; OPTIMIZATION; PROFITABILITY;

COSTS;

EID: 77951206315     PISSN: 10834427     EISSN: None     Source Type: Journal    
DOI: 10.1109/TSMCA.2009.2036934     Document Type: Conference Paper

References (45)

1. A. Atamtürk and D. S. Hochbaum, "Capacity acquisition, subcontracting, and lot sizing," Manage. Sci., vol.47, no.8, pp. 1081-1100, Aug. 2001. (Pubitemid 34192807)
2. J. Yang and S. Yang, "The use of a premium-payment scheme in a supply chain involving capacity acquisition," Eur. J. Oper. Res., vol.181, no.1, pp. 207-223, Aug. 2007. (Pubitemid 46320829)
3. A. M. Ross, Y. Rong, and L. V. Snyder, "Supply disruptions with timedependent parameters," Comput. Oper. Res., vol.35, no.11, pp. 3504- 3529, Nov. 2008.
4. A. Gunasekaran and E. W. T. Ngai, "Build-to-order supply chain management: A literature review and framework for development," J. Oper. Manage., vol.23, no.5, pp. 423-451, Jul. 2005. (Pubitemid 40761046)
5. M. Ghiassi and C. Spera, "Defining the Internet-based supply chain system for mass customized markets," Comput. Ind. Eng., vol.45, no.1, pp. 17-41, Jun. 2003.
6. F. Sahin and E. P. Robinson, "Information sharing and coordination in make-to-order supply chains," J. Oper. Manage., vol.23, no.6, pp. 579- 598, Sep. 2005. (Pubitemid 41101370)
7. S. Prasad, J. Tata, and M. Madan, "Build to order supply chains in developed and developing countries," J. Oper. Manage., vol.23, no.5, pp. 551- 568, Jul. 2005. (Pubitemid 40752698)
8. T. M. Choi, D. Li, and H. Yan, "Mean-variance analysis for the newsvendor problem," IEEE Trans. Syst., Man, Cybern. A, Syst., Humans, vol.38, no.5, pp. 1169-1180, Sep. 2008.
9. J. R. Bradley and P. W. Glynn, "Managing capacity and inventory jointly in manufacturing systems," Manage. Sci., vol.48, no.2, pp. 273-288, Feb. 2002. (Pubitemid 34292397)
10. S. Radhakrishnan and K. R. Balachandran, "Service capacity decision and incentive compatible cost allocation for reporting usage forecasts," Eur. J. Oper. Res., vol.157, no.1, pp. 180-195, Aug. 2004.
11. C. H. Chiu, T. M. Choi, and D. Li, "Price wall or price war: Pricing strategies of retailers," IEEE Trans. Syst., Man, Cybern. A, Syst., Humans, vol.39, no.2, pp. 331-343, Mar. 2009.
12. L. M. Wang, L. W. Liu, and Y. J. Wang, "Capacity decisions and supply price games under flexibility of backward integration," Int. J. Prod. Economics, vol. 110, no. 1/2, pp. 85-96, Oct. 2007.
13. C. S. Chung, J. Flynn, and Ö. Kirca, "A multi-item newsvendor problem with preseason production and capacitated reactive production," Eur. J. Oper. Res., vol.188, no.3, pp. 775-792, Aug. 2008. (Pubitemid 351173473)
14. S. Stidham, "Pricing and capacity decisions for a service facility: Stability and multiple local optima," Manage. Sci., vol.38, no.8, pp. 1121-1139, Aug. 1992.
15. J. A. VanMieghem and M. Dada, "Price versus production postponement: Capacity and competition," Manage. Sci., vol.45, no.12, pp. 1631-1649, Dec. 1999. (Pubitemid 30561194)
16. H. K. Cheng, H. Demirkan, and G. J. Koehler, "Price and capacity competition of application services duopoly," Inf. Syst. e-Business Manage., vol.1, no.3, pp. 305-329, Aug. 2003.
17. D. A. Serel, "Capacity reservation under supply uncertainty," Comput. Oper. Res., vol.34, no.4, pp. 1192-1220, Apr. 2007.
18. M. S. Pangburn and E. Stavrulaki, "Capacity and price setting for dispersed, time-sensitive customer segments," Eur. J. Oper. Res., vol.184, no.3, pp. 1100-1121, Feb. 2008.
19. S. Deng and C. A. Yano, "Joint production and pricing decisions with setup costs and capacity constraints," Manage. Sci., vol.52, no.5, pp. 741-756, May 2006.
20. G. R. Bitran and D. Tirupati, "Tradeoff curves, targeting and balancing in manufacturing queuing networks," Oper. Res., vol.37, no.4, pp. 547-564, Jul./Aug. 1989.
21. H. Matsuura and H. Tsubone, "Setting planned lead-times in capacity requirements planning," J. Oper. Res. Soc., vol.44, no.8, pp. 809-816, Aug. 1993.
22. S. Rajagopalan and H. L. Yu, "Capacity planning with congestion effects," Eur. J. Oper. Res., vol.134, no.2, pp. 365-377, Oct. 2001.
23. M. Mandjes and J. Timmer, "A duopoly model with heterogeneous congestion-sensitive customers," Eur. J. Oper. Res., vol.176, no.1, pp. 445-467, Jan. 2007.
24. J. A. Van Mieghem, "Coordinating investment, production and subcontracting," Manage. Sci., vol.45, no.7, pp. 954-971, Jul. 1999.
25. G. Yu and X. Qi, Disruption Management: Framework, Models, and Applications. Singapore: World Scientific, 2004.
26. Y. S. Xia, M. H. Yang, B. Golany, S. M. Gilbert, and G. Yu, "Real time disruption management in a two-stage production and inventory system," IIE Trans., vol.36, no.2, pp. 111-125, Feb. 2004.
27. B. Tomlin, "On the value of mitigation and contingency strategies for managing supply chain disruption risks," Manage. Sci., vol.52, no.5, pp. 639-657, May 2006.
28. C. W. Craighead, J. Blackhurst, M. J. Rungtusanatham, and R. B. Handfield, "The severity of supply chain disruptions: Design characteristics and mitigation capabilities," Decis. Sci., vol.38, no.1, pp. 131-156, Feb. 2007.
29. X. Qi, J. F. Bard, and G. Yu, "Supply chain coordination with demand disruptions," Omega, vol.32, no.4, pp. 301-312, Aug. 2004.
30. X. Qi, J. F. Bard, and G. Yu, "Disruption management for machine scheduling: The case of SPT schedules," Int. J. Prod. Economics, vol.103, no.1, pp. 166-184, Sep. 2006.
31. T. J. Xiao, G. Yu, Z. H. Sheng, and Y. S. Xia, "Coordination of a supply chain with one-manufacturer and two-retailers under demand promotion and disruption management decisions," Ann. Oper. Res., vol.135, no.1, pp. 87-109, Mar. 2005.
32. T. J. Xiao, X. Qi, and G. Yu, "Coordination of supply chain after demand disruptions when retailers compete," Int. J. Prod. Economics, vol. 109, no. 1/2, pp. 162-179, Sep. 2007.
33. T. J. Xiao and X. Qi, "Price competition, cost and demand disruptions and coordination of a supply chain with one manufacturer and two competing retailers," Omega, vol.36, no.5, pp. 741-753, Oct. 2008.
34. M. Xu, X. Qi, G. Yu, and H. Zhang, "Coordinating dyadic supply chains when production costs are disrupted," IIE Trans., vol.38, no.9, pp. 765- 776, Sep. 2006.
35. H. L. Lee and S. Whang, "Higher supply chain security with lower cost: Lessons from total quality management," Int. J. Prod. Economics, vol.96, no.3, pp. 289-300, Jun. 2005.
36. K. B. Hendricks, V. R. Singhal, and C. I. Wiedman, "The impact of capacity expansion on the market value of the firm," J. Oper. Manage., vol. 12, no. 3/4, pp. 259-272, Jun. 1995.
37. J. F. Nash, "Equilibrium points in n-person games," Proc. Nat. Acad. Sci., vol.36, no.1, pp. 48-49, Jan. 1950.
38. R. Selten, "Spieltheoretische behandlung eines oligopolmodells mit nachfagetragheit," Zeitschrift fur die Gesamte Staatswissenschaft, vol.12, pp. 301-324, 1965.
39. G. Debreu, "A social equilibrium existence theorem," Proc. Nat. Acad. Sci., vol.38, no.10, pp. 886-893, Oct. 1952.
40. I. L. Glicksberg, "A further generalization of the Kakutani fixed point theorem, with application to Nash equilibrium points," Proc. Amer. Math. Soc., vol.3, no.1, pp. 170-174, 1952.
41. P. Pekgün, P. M. Griffin, and P. Keskinocak, "Coordination of marketing and production for price and leadtime decisions," IIE Trans., vol.40, no.1, pp. 12-30, Jan. 2008.
42. F. Bernstein and A. Federgruen, "Pricing and replenishment strategies in a distribution system with competing retailers," Oper. Res., vol.51, no.3, pp. 409-426, May 2003.
43. M. Wong, Moiselle: Pret-a-Porter Hong Kong Style. Hong Kong: Univ. Hong Kong's Centre Asian Business Cases, 2003.
44. L. K. Cheng, "Li & Fung, Ltd.: An agent of global production," in Global Production and Trade in East Asia, L. K. H. Cheng and H. Kierzkowski, Eds. New York: Springer-Verlag, 2001, ch. 19.
45. X. Zhu and S. K. Mukhopadhyay, "Optimal contract design for outsourcing: Pricing and quality decisions," Int. J. Revenue Manage., vol.3, no.2, pp. 197-217, Jan. 2009.