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Author:So, K.
Song, J.
Title:Price, delivery time guarantees and capacity selection
Journal:European Journal of Operational Research
1998 : NOV 16, VOL. 111:1, p. 28-49
Index terms:OPERATIONAL RESEARCH
PRICES
GUARANTEES
Language:eng
Abstract:This paper studies the impact of using delivery time guarantees as a competitive strategy in service industries where demands are sensitive to both price and delivery time. The authors assume that delivery reliability is crucial, and investment in capacity expansion is plausible in order to maintain a high probability of delivering the time guarantee. A mathematical framework is proposed to understand the interrelations among pricing, delivery time guarantee and capacity expansion decisions.
SCIMA record nr: 186746
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