The third essay deals with an outsourcing problem where both Manufacturer and his Supplier may improve their operations and decrease production costs. Such cost reductions, however, require costly effort and are only possible when experimenting with actual production methods. That is some minimum quantity of production enables potential improvements. While various reasons have been provided for dual sourcing, I provide a new explanation, which is driven by the fact that in-house production may facilitate learning about potential process improvements leading to eventual cost reductions.While capacity shortages can be observed in many settings, they are quite likely to occur when new products are introduced ... Similarly, in 2006 Sony announced a shortage of PlayStation 3a#39;s due to insufficient manufacturing capacity of its keyanbsp;...
|Title||:||Three Essays on Dynamic Production and Pricing Decisions for New Products|
|Publisher||:||ProQuest - 2008|