Pricing and capacity planning decisions for BTO manufacturing based on priority differentiation strategy
Many BTO manufacturing firms are exploring production strategies when customers may be segmented into different classes based on service level or priority. Such segmentation can result in a more efficient production system as well as a better match between supply and demand. A BTO manufacturing system with two customer classes is studied, where one customer class has higher priority of fulfillment than the other customer class. Optimal pricing and capacity planning decisions for each segment assuming each segment demand as being linear in price are developed. Numerical studies show that priority differentiation strategy increases profit and product substitutability influences a firms differentiation strategy.
Li LI Zhi-xiang CHEN
International Business School, Sun Yat-Sen University, Guangzhou, China School of Business, Sun Yat-Sen University, Guangzhou, China
国际会议
长春
英文
943-947
2011-09-03(万方平台首次上网日期,不代表论文的发表时间)