Journal article
Inventory investment, product cycles, and the imperfectly competitive firm
International journal of production economics, Vol.54(3), pp.267-276
05/18/1998
DOI: 10.1016/S0925-5273(98)00002-4
Abstract
We consider a profit-maximizing, imperfectly competitive firm, with downward-sloping demand functions, that can produce multiple products at a single facility. We show that if the firm dedicates production to a single product, both dynamic production, which exploits inventory, and static production, which does not, can be optimal. We also consider sharing the production facility by multiple products. We evaluate the efficiency of scheduling production using simple rotation cycle scheduling, and give a condition for guaranteeing optimality of this scheduling rule. We conclude by studying when dedicated production is preferred over shared production.
Details
- Title: Subtitle
- Inventory investment, product cycles, and the imperfectly competitive firm
- Creators
- Philip C. Jones - University of IowaLeon N. Moses - Northwestern UniversityJames L. Zydiak - Loyola University Chicago
- Resource Type
- Journal article
- Publication Details
- International journal of production economics, Vol.54(3), pp.267-276
- DOI
- 10.1016/S0925-5273(98)00002-4
- ISSN
- 0925-5273
- eISSN
- 1873-7579
- Publisher
- Elsevier B.V
- Number of pages
- 10
- Language
- English
- Date published
- 05/18/1998
- Academic Unit
- Business Analytics
- Record Identifier
- 9984963211002771
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