Dynamic Capacity Planning Under Centralized and Decentralized Pricing Schemes
| Autor: | Hung-Chen Chiu, 邱虹禎 |
|---|---|
| Rok vydání: | 2010 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 98 This research studies a finite period problem concerning product pricing, production, and capacity decision. We consider the capacity planning problem under centralized and decentralized pricing decisions. Dynamic capacity planning problems are formulated for a company who manufactures two products. Cross-price effects are considered, namely demand of each product is affected by prices of both products. Demand scenarios are utilized to formulate the volatile business environments. We formulate the problem into dynamic programming models with different pricing schemes. The decision variable is the capacity expansion amount in each period that maximized the total expected profit in the planning horizon. In each period, nonlinear optimization problem is solved to decide the optimal product prices and production quantities. In centralized pricing decision, we study two cases of centralized price, the separate product prices and the average selling price (ASP). We find that the adoption of separate product prices in capacity planning process yield much higher expected total profit than that of the ASP. Furthermore, we find that the decentralized prices lead to the lowest expected profit compared to that of the centralized price in capacity process. Numerical study is adapted to verify the model robustness, and help us to obtain more insights about the relationship between centralized and decentralized pricing scheme in capacity planning. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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