Capacity allocation strategy under quantity competition

Abstract

The original manufacturers in the TFT-LCD industry are facing a threatening situation when the competitors join the market It is a significant issue for the original manufacturers to consider how to change the composition of the products and to adjust the production capacity in order to face the aggression from the competitors in such a limited market demand This study discusses two panel factories competed in production capacity The difference between two factories depends on more production and less production In the competition between full activation of production and economic batch production therefore it leads to four situations In addition to simulate and analysis these tendencies This study indicates the connection between the firm’s activation of production and profits through those situations above-mentioned Using numerical analysis to discuss the parameter in terms of balanced solution and the best profitable strategy analysis However provide a managing content This research offer suggestions: 1) There is a positive relationship between the initial prices from low to high and two types of production mode 2) Both of two factories are against with production sensitivity and their production mode 3) The slope tends to be negative according to profits and opponent’s competitive intensity 4) The vulnerable factory which prefer the initial relative ratio using economic batch production 5) The conversion rate compared to production strategy are due to both factories implement economic batch produce to reach mass profit

Date of Award	2020
Original language	English
Supervisor	Cheng-Han Wu (Supervisor)