Research On Price And Delivery Time Decision Of Duopoly MTO Enterprise On Capacity

With the rapid development of social economy,people's living improve continuously.Consumers increasingly pursue personalized products so that demand is increasingly difficult to predict.Production logistics shows more diversity and complexity.In this context,MTO(Make-to-Order)production style came into being because of its ability to improve production flexibility,to reduce the impact of uncertainty demand,to meet the individual needs of customers.In addition,due to the function and quality of many products being seriously homogeneous in segment market,the price difference between products is minimal,substitutes intensified.Time gradually become a competitive element.This has made new demands on the capacity of enterprise capacity logistics.Therefore,the consumer market jointly focus time and price instead of price concerns.Therefore,under the environment of oligopoly competition market,this paper examine the decision of pricing,delivery and capacity of MTO enterprise under the delivery time reliability-constraint focusing on the sensitivity of the demand of price and delivery time and the substitution between the products.The main content as follows:First,this paper examines the price,promised delivery time decision of the duopoly MTO companies considering delivery time reliability-constraint under fixed capacity.Firstly,the sufficient condition of the KKT optimal condition is proved,which shows that the KKT point is globally optimal.Secondly,we analyze the existence and uniqueness of the promised delivery time and the price equilibrium solution,and then explain the necessity of price and promised delivery time decision.Then we use Mathematics software to analyze the sensitivity of the main parameters.We find that when the two companies weakened the competitive relationship,their equilibrium prices and promised delivery time will increase,but this does not mean that profits must be reduced.The increase in unilateral capacity of a company will not lead to an increase in the price and a decrease in the promised delivery time.Companies that promise higher levels of reliability are not necessarily able to earn more.Second,this paper examines the price,promised delivery time and capacity decision of oligopoly MTO companies considering delivery time reliability-constraint under the environment that capacity can be adjusted and the impact on decision of capacity cost differentiation.In order to differentiate the competition,one company takes the promised delivery time as its own competitive advantage.In this context,we take into account the price,promised delivery time and capacity decision in the two cases respectively.In the short term,the company invested capacity to satisfy the promised delivery time standard.In the long term,the company can set promised delivery time according to their demand and capacity.We can find a company's different capacity investment costs not only affect the company's decision-making but also have a great impact on another company.And the reaction of the two companies on the market promised delivery time and price sensitivity coefficient will be significantly different.