|
|
The Optimal Capacity and Pricing Decision under the Influence of Capital Value in Supply Chain |
SUN Jin-Zhong |
1. Beihang University, Beijing, China; 2. Wuyi University, Jiangmen, Guangdong, China |
|
|
Abstract The paper synthetically considers the influences of market uncertainty, sales volume and capital value on decision-making of capacity, and studies the optimal capacity decision and pricing strategy in decentralized and centralized decision-making supply chains and acquires the closed form solutions under various parameter conditions. The research indicates that the wholesale price contract can not coordinate the supply chains even if information is symmetric and capacity must be satisfied. The channel coordination can be achieved if the manufacturer gives the supplier appropriate payment for the unused capacity.
|
Received: 09 April 2010
|
|
|
|
|
|
|