Pricing strategy and reserved capacity plan based on product life cycle and production function on LCD TV manufacturer

Since 2003, electronic products have become the main power of national economy growth. All the manufacturers have set their primary markets to meet the consumer’s demand. Taking the current LCD TV manufacturers as an example, they have to emphasize on the product design, performance and the reduction of cost. Therefore, nowadays the most important task for LCD TV industry is that the international manufacturer shall fix a suitable win–win price and productive capacity for itself as well as for the Original Equipment Manufacturing (OEM) when the OEM has received the order, so that both sides could construct a long-established relation and they could reach the object of maximized profit. This research develops an initiative win–win pricing strategy based on product life cycle (PLC), and for the OEM, this research has used the production function (PF) to deal with the pricing and the maximum flow potential under different PF. It wants to found a decision model based on genetic algorithm and use Visual Basic to construct an information system so that the industry circle could have a judging standard for reserving productive capacity and pricing strategy. While the successful pricing is not only a final result, it is a continual process; we hope this user interface could help the enterprises to study out a suitable price and productive capacity structure. 2008 Elsevier Ltd. All rights reserved.