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Supply Chain Management and Logistics
book

Supply Chain Management and Logistics

by Zhe Liang, Wanpracha Art Chaovalitwongse, Leyuan Shi
October 2018
Intermediate to advanced content levelIntermediate to advanced
288 pages
9h 1m
English
CRC Press
Content preview from Supply Chain Management and Logistics
217A Game of Competitive Investment
Let us consider the total stage 1 capacity investment levels. By Equations
8.31 and 8.41, we can combine the competitive and rst-best cases to obtain
the following: for n = 1, 2,…,

zz
n
LH
n
nL nH
*
(0)=
*
(0)=
(2 1)
16
2
2
2
−⋅
+
()
, (8.45)
and
zB n
LH LB
nB
nL n
n
n
*
()=(21)
2
(16(
1)
)
2
2
22
//
α−
++
()
⋅+ ,,
*
()=(21)
2
(16(
1)
2
2
2
zB n
HL HB
nB
nH n
n
n
//
α−
++
()
⋅+
22
).
(8.46)
We may dene
k
n
*
for n = 1,2,… as a ratio:
k
zz
zz
n
nH n
nL n
*
=
*
(
*
)
*
(
*
)
0
0
.
(8.47)
It measures the condence a rm has in its acquired information about the
market outlook.
By Propositions 8.7 and 8.8 and Equations 8.45 through 8.47, we have, for
n = 1, 2,…,
k
AA C
KB
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Publisher Resources

ISBN: 9781466577886