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Production Planning, Oligopoly and Supply Chains

  • Terry L. Friesz
Chapter
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 135)

Abstract

In this chapter we develop models that describe how prices, production rates and distribution activities evolve over time and influence one another for three output market structures: 1. perfect competition 2. monopoly, and 3. oligopoly. In particular, we apply the material from previous chapters to the modeling and computation of production, distribution, and supply chain decisions made by firms operating within the three competitive environments mentioned above. Throughout this chapter our perspective is deterministic, and the dynamic games considered are open loop in nature with perfect initial information.We begin with aspatial models and move to models with explicit network path flows. We shall deal exclusively with finite terminal times and see that policies near the terminal time are of great importance to the lifetime profitability of firms. One of our goals will be to study how policies on inventory remaining at the terminal time as will as the value of such residual inventories when liquidated can influence operations throughout a firm’s history.

Keywords

Supply Chain Variational Inequality Production Planning Terminal Time Adjoint Variable 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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List of References Cited and Additional Reading

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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.Dept. Industrial & Manufacturing EngineeringPennsylvania State UniversityUniversity ParkUSA

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