Capacity planning in a general supply chain with multiple contract types
نویسنده
چکیده
The successful commercialization of any new product depends to a degree on the ability of a firm to match its supply to market demand. In an emerging industry where products have little similarity with the products in existing industries, it is very hard to predict demand patterns. In this paper, we will develop a general mathematical model for providing decision support for the design of supply chains for emerging industries. In particular, we will focus on how capacity investments in a general supply chain can be made in the presence of demand uncertainty and different types of contracts. We will develop an efficient and practical algorithm for finding the optimal capacity planning strategy in a multi-product and multi-stage supply chain model and study the properties of the optimal strategies.
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