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| Analysis of Capacity Investment under Information and Capacity Sharing |
| WEN Tao1，2,HUANG Pei-qing1 |
( 1.Antai College of Economics & Management, Shanghai Jiaotong University, Shanghai 200052, China；
2.School of Science, East China University of Science and Technology, Shanghai 200237, China) |
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Abstract Consider two supply chains, each consists of a manufacturer and a retailer. Customer demands arrive at retailers randomly. Demands in one supply chain are relatively stable. Its distribution is determined and known by both manufacturers.The demand distribution in the other supply chain changes with time. According to whether the two manufacturers can share their excess capacities and information, three models were considered, i.e.the two manufacturers do not cooperate, cooperate partly and cooperate completely.The optimal capacities and corresponding profits for both manufacturers were specified in these models, the impact of sharing capacities and information on manufacturers’ profits was analyzed and conditions were concluded under which manufacturers want to share their excess capacities and information.
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Received: 24 December 2007
Published: 28 November 2008
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Corresponding Authors:
HUANG Pei-qing
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