Showing 1 - 10 of 258
This article studies optimal investment in flexible manufacturing capacity as a function of product prices (margins …
Persistent link: https://www.econbiz.de/10009214631
We develop a theoretical model of long-run investment decisions on capacity in the context of a liberalized electricity … the level of capacity that maximizes social welfare, and compare it to a decentralized outcome. We show that in the … absence of any regulation, private investment decisions on capacity unambiguously lead to a socially sub-optimal outcome, and …
Persistent link: https://www.econbiz.de/10005792333
competitive stochastic investment game with recourse. The manufacturer and subcontractor decide separately on their capacity … production and sales. We analyze and present outsourcing conditions for three contract types: (1) price-only contractswhere an ex … state-dependent contracts can eliminate all decentralization costs and coordinate capacity investmentdecisions. The …
Persistent link: https://www.econbiz.de/10009218316
firms make three decisions: capacity investment, production (inventory) quantity, and price. Typically, investments are made … investment decision of the firm and its value. In contrast to production postponement, price postponement makes the investment … and production (inventory) decisions relatively insensitive to uncertainty. This suggests that managers can make optimal …
Persistent link: https://www.econbiz.de/10009198232
prices in general depends on the merchant's inventory availability. This is a consequence of the interplay between the …This paper considers the so-called warehouse problem with both space and injection/withdrawal capacity limits. This is … capacity and space limits of the storage asset and brings to light the nontrivial nature of the interface between trading and …
Persistent link: https://www.econbiz.de/10009197805
availability of resources in that setting, are discussed as critical factors for the effective adaptation of organizations and …
Persistent link: https://www.econbiz.de/10009214014
In this paper we investigate importance sampling techniques for the simulation of Markovian systems with highly reliable components. The need for simulation arises because the state space of such systems is typically huge, making numerical computation inefficient. Naive simulation is inefficient...
Persistent link: https://www.econbiz.de/10009204131
This paper analyzes the impact of endogenous credit terms under capital market imperfections in a capacity investment … setting. We model a monopolist firm that decides on its technology choice (flexible versus dedicated) and capacity level under … demand uncertainty. Differing from the majority of the stochastic capacity investment literature, we assume that the firm is …
Persistent link: https://www.econbiz.de/10010990459
capacity and production costs to vary over time). We show that the unintuitive but optimal behavior of denying customers …Two recent papers on managing new product diffusion decisions under production constraints reach somewhat contradictory …-879) show that production constraints may in fact lead a firm to reject customers' orders even when the firm has the inventory …
Persistent link: https://www.econbiz.de/10010990634
analysis into its medium-term capacity planning procedures and the effect of information aggregation on learning curve capacity … projections. The research into these two issues uses a simulation study that describes the relevant production and information … characteristics. Four production characteristic variables are investigated: (1) average learning rate, (2) run-time variance, (3 …
Persistent link: https://www.econbiz.de/10009214390