Investment in facility flexibility under uncertain competitor market entry

Richard M. Franza, Cheryl Gaimon

Research output: Contribution to conferencePaperpeer-review

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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