Skip to main content
SpringerLink
Log in

Optimal Investment Strategies for Flexible Resources, Considering Pricing

  • Chapter
Supply Chain Optimization

Part of the book series: Applied Optimization ((APOP,volume 98))

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Andreou, S.A., 1990. A Capital Budgeting Model for Product-Mix Flexibility. Journal of Manufacturing Operations Management 3, 5–23.

    Google Scholar 

  • Beach, R., A.P. Muhlemann, D.H.R. Price, A. Paterson, and J.A. Sharp, 2000. A Review of Manufacturing Flexibility. European Journal of Operational Research 122, 41–57.

    Article  MATH  Google Scholar 

  • Biller, S., E.K. Bish, and A. Muriel, 2002. Impact of Manufacturing Flexibility on Supply Chain Performance, in Supply Chain Structures: Coordination, Information, and Optimization. Eds. J. Song and D. D. Yao, Kluwer Academic Publishers, Boston/Dordrecht/London, 73–118.

    Google Scholar 

  • Birge, J.R., 2000. Option Methods for Incorporating Risk into Linear Capacity Planning Models. Manufacturing and Service Operations Management, 2, 19–31.

    Article  Google Scholar 

  • Bish, E.K. and R. Suwandechochai, 2003. The Interaction between Resource Flexibility and Price Postponement Strategies. Technical Report. Department of Industrial and Systems Engineering, Virginia Polytechnic Institute and State University, Blacksburg, VA.

    Google Scholar 

  • Bish, E.K., and Q. Wang, 2004. Optimal Investment Strategies for Flexible Resources, Considering Pricing and Correlated Demands. Operations Research 52, No. 6, 954–964.

    Article  MathSciNet  Google Scholar 

  • Caulkins, J.P. and C.H. Fine, 1990. Seasonal Inventories and the Use of Product-Flexible Manufacturing Technology. Annals of Operations Research 26, 351–375.

    MathSciNet  MATH  Google Scholar 

  • Cattani, K., E. Dahan, and G. Schmidt, 2003. Spackling: Smoothing Make-to-order Production of Custom Products with Make-to-stock Production of Standard Items. Technical Report. University of North Carolina, Chapel Hill.

    Google Scholar 

  • Chen, Z.L., S. Li, and D. Tirupati, 2002. A Scenario Based Stochastic Programming Approach for Technology and Capacity Planning. Computers and Operations Research, 29(7), 781–806.

    Article  MathSciNet  MATH  Google Scholar 

  • Chod, J. and N. Rudi, 2002. Resource Flexibility with Responsive Pricing. Operations Research. Forthcoming.

    Google Scholar 

  • Coy, P., 2000. The Power of Smart Pricing: Companies are Fine-tuning Their Price Strategies and it is Paying off. Business Week, April 10, 2000.

    Google Scholar 

  • DaimlerChrysler News, 2002. Chrysler Group’s Windsor Assembly Plant Launches Next Phase of Flexible Manufacturing. http://www.daimlerchrysler.com/news/top/2002/t21211a.htm.

    Google Scholar 

  • Dangl, T., 1999. Investment and Capacity Choice under Uncertain Demand. European Journal of Operational Research 117, 415–428.

    Article  MATH  Google Scholar 

  • De Groote, X., 1994. The Flexibility of Production Processes: A General Framework. Management Science 40, 933–945.

    MATH  Google Scholar 

  • De Toni, A. and S. Tonchia, 1998. Manufacturing Flexibility: A Literature Review. International Journal of Production Research, 36, 1587–1617.

    Article  MATH  Google Scholar 

  • Eberly, J.C. and J.A. Van Mieghem, 1997. Multifactor Dynamic Investment Under Uncertainty. Journal of Economic Theory 75, 345–387.

    Article  MathSciNet  MATH  Google Scholar 

  • Eppen, G.D., R.K. Martin and L. Schrage, 1989. A Scenario Approach to Capacity Planning. Operations Research 37, No. 4, 517–527.

    Google Scholar 

  • Fine, C.H. and R.M. Freund, 1990. Optimal Investment in Product-Flexible Manufacturing Capacity. Management Science 36, No. 4, 449–466.

    MathSciNet  MATH  Google Scholar 

  • Goyal, M. and S. Netessine, 2004. Strategic Technology Choice and Capacity Investment under Demand Uncertainty. Technical Report. University of Pennsylvania, PA.

    Google Scholar 

  • Graves, S.C. and B.T. Tomlin, 2000. Process Flexibility in Supply Chains. Management Science, 49, No. 7, pp. 907–919.

    Article  Google Scholar 

  • Greenberg, K., 2001. Much Ado about Chrysler. Brandweek, 32–40, April 9, 2001.

    Google Scholar 

  • Gupta, D., Y. Gerchak, and J.A. Buzacott, 1992. The Optimal Mix of Flexible and Dedicated Manufacturing Capacities: Hedging Against Demand Uncertainty. International Journal of Production Economics 28, 309–319.

    Article  Google Scholar 

  • Harrison, J.M. and J.A. Van Mieghem, 1999. Multi-resource Investment Strategies: Operational Hedging under Demand Uncertainty. European Journal of Operational Research 113, 17–29.

    Article  MATH  Google Scholar 

  • Jones, R.A. and J.M. Ostroy, 1984. Flexibility and Uncertainty. Rev. Economic Studies 51, 13–32.

    MATH  Google Scholar 

  • Jordan, W.C. and S.C. Graves, 1995. Principles and Benefits of Manufacturing Process Flexibility. Management Science 41, No. 4, 577–594.

    MATH  Google Scholar 

  • Kouvelis, P., 1992. Design and Planning Problems in Flexible Manufacturing Systems: A Critical Review. Journal of Intelligent Manufacturing, 3, 75–99.

    Article  Google Scholar 

  • Li, S. and D. Tirupati, 1995. Technology Choice with Stochastic Demands and Dynamic Capacity Allocation: A Two Product Analysis. Journal of Operations Management, 12, 239–258.

    Article  Google Scholar 

  • Netessine, S., G. Dobson, and R.A. Shumsky, 2002. Flexible Service Capacity: Optimal Investment and the Impact of Demand Correlation. Operations Research 50, 375–388.

    Article  MathSciNet  Google Scholar 

  • Sethi, A.K. and S.P. Sethi, 1990. Flexibility in Manufacturing: A Survey. The International Journal of Flexible Manufacturing Systems 2, 289–328.

    Google Scholar 

  • Tayur, S., R. Ganeshan, and M. Magazine (eds.), 2000. Quantitative Models for Supply Chain Management. Kluwer Academic Publishers, Boston.

    Google Scholar 

  • The Detroit News, 2003. Flexible Factories will Help Dull Japanese Edge: Automakers Explore Turning Overcapacity into Multiuse Plants. The Detroit News, August 5, 2003.

    Google Scholar 

  • Triantis, A.J. and J.E. Hodder, 1990. Valuing Flexibility as a Complex Option. The Journal of Finance 45, No. 2, 549–565.

    Google Scholar 

  • Van Mieghem, J.A., 2004. Risk-averse Newsvendor Networks: Resource Sharing, Substitution, and Operational Hedging. Technical Report. Northwestern University, Evanston, IL.

    Google Scholar 

  • Van Mieghem, J.A., 2004. Commonality Strategies: Value Drivers and Equivalence with Flexible Capacity and Inventory Substitution. Management Science 50, pp. 419–424.

    Article  Google Scholar 

  • Van Mieghem, J.A., 2003. Capacity Management, Investment and Hedging: Review and Recent Developments. Manufacturing & Service Operations Management 5, 269–302.

    Article  Google Scholar 

  • Van Mieghem, J.A., 1998. Investment Strategies for Flexible Resources. Management Science 44, 1071–1078.

    Article  MATH  Google Scholar 

  • Van Mieghem, J.A. and M. Dada, 1999. Price versus Production Postponement: Capacity and Competition. Management Science 45, 1631–1649.

    Google Scholar 

  • Van Mieghem, J.A. and N. Rudi, 2002. Newsvendor Networks: Inventory Management and Capacity Investment with Discretionary Activities. Manufacturing & Service Operations Management 4, 313–335.

    Article  Google Scholar 

  • Welch, D., 2003. How Nissan Laps Detroit. Business Week, December 22, 2003.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Grado Department of Industrial and Systems Engineering, Virginia Polytechnic Institute and State University, Blacksburg, VA, 24061-0118

    Ebru K. Bish

Authors
  1. Ebru K. Bish
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. University of Florida, Gainesville, USA

    Joseph Geunes  & Panos M. Pardalos  & 

Rights and permissions

Reprints and permissions

Copyright information

© 2005 Springer Science+Business Media, Inc.

About this chapter

Cite this chapter

Bish, E.K. (2005). Optimal Investment Strategies for Flexible Resources, Considering Pricing. In: Geunes, J., Pardalos, P.M. (eds) Supply Chain Optimization. Applied Optimization, vol 98. Springer, Boston, MA. https://doi.org/10.1007/0-387-26281-4_4

Download citation

Publish with us

Policies and ethics

Search

Navigation