Investment in facility flexibility under uncertain competitor market entry

Richard M. Franza, Cheryl Gaimon

Research output: Contribution to conferencePaper

Abstract

For firms competing in markets characterized by short life cycles, quick changeover of manufacturing processes from one product generation to the next is critical. Longer changeovers delay a firm's market entry. As a firm's market entry time is delayed, its opportunity to accumulate demand is diminished. The extent to which demand is lost reflects the market entry time of the firm's competitor. A model is introduced to explicitly examine the effect of uncertainty associated with a competitor's market entry time on both manufacturing and marketing strategies. The firm's objective is to maximize expected profit obtained from a series of high volume products manufactured on a single facility.

Original languageEnglish (US)
Pages153-157
Number of pages5
StatePublished - Jan 1 1996
Externally publishedYes
EventProceedings of the 1996 IEEE International Engineering Management Conference - Vancouver, BC, Can
Duration: Aug 18 1996Aug 20 1996

Other

OtherProceedings of the 1996 IEEE International Engineering Management Conference
CityVancouver, BC, Can
Period8/18/968/20/96

ASJC Scopus subject areas

  • Engineering(all)
  • Management Science and Operations Research

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    Franza, R. M., & Gaimon, C. (1996). Investment in facility flexibility under uncertain competitor market entry. 153-157. Paper presented at Proceedings of the 1996 IEEE International Engineering Management Conference, Vancouver, BC, Can, .