Optimal service speeds in a competitive environment

Article Abstract:

An exponential two-server model is used to examine optimal service speed in a competitive environment. Each of the two servers is provided with the option of selecting their own service rate such that the trend is toward increasing and convex cost. For every customer attended to, a server is given a reward of fixed value. Either of three situations was observed to occur based on revenue generated for every attended customer and based on service rate maintenance costs. These are the Nash strategic equilibrium of unique symmetry with infinite expected waiting time, the strategic equilibrium of unique symmetry with finite waiting time, and strategic equilibria of nonsymmetry with finite waiting time. The concept of competition between servers and server market share in a multiserver operation are introduced.

Research, Customer service, Services industry, Service industries, Queuing theory

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Optimal operating policies in the presence of exchange rate variability

Article Abstract:

The nature of optimal operating policies being implemented by company that operates plants in various countries are examined in the light of varying political and economic factors that affect production costs. These factors may include inflation, exchange rates, tariffs and taxes. A model that examines the relationship between exchange rate variability, switch-over costs and barrier size is used to derive a program that can solve production problems in cases wherin switch-over costs are linear or step functions. However, the model is limited as it failed to consider a company's ability to affect demand through price and product differentiation. In addition, the model dealt with cost minimization as opposed to profit maximization.

Production Management, Prices and rates, International business enterprises, Multinational corporations, Foreign exchange, Foreign exchange rates

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Subcontracting, coordination, flexibility, and production smoothing in aggregate planning

Article Abstract:

A production planning model in which subcontracting is explicitly considered as a planning strategy is presented. Inventory accumulation, modification of the demand pattern, and subcontracting can all be used to achieve production smoothing. Subcontracting can be arranged through either market mechanisms or relational mechanisms. Coordination subcontracts, which minimize the total production costs of both the prime contractors and the subcontractors, Pareto-dominate other subcontracts. Firms using subcontracting as a production planning technique must forecast their own production requirements, the production requirements of other firms, and the cost data of other firms.

Subcontracting, Dynamic programming, Production planning, Smoothing (Numerical analysis)

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