Analysis of Demand Allocation in Dual Capacity Sourcing
Date Issued
2008
Date
2008
Author(s)
Lu, Chun-Ju
Abstract
Work division in global manufacturing services nowadays necessitates the consideration of quality and stability of capacity supply. Dual or multiple sourcing is used in order to reduce the shock brought about by uncertain events. This study refers to manufacturing service firm as a duopoly industry. Competitive strategy analysis of duopoly manufacturing service firms is made under the consideration of product firms demand allocation point of view.t is shown that, by setting the demand allocation policy, product firms can raise the coordinated source of capacity. Dual sourcing can increase timely and stable high level of capacity supply. Furthermore demand allocation policies must consider maintaining the type of industrial organization. Adjusting the demand allocation too much will make it difficult for firm’s survival. Therefore, a most favorable demand allocation policy for product firm is designed.
Subjects
dual sourcing
manufacturing for service
game theory
customer behavior
Type
thesis
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ntu-97-R95546021-1.pdf
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