A hybrid of monopoly and perfect competition model for hi-tech products

作者：Yang P C; Wee H M^*; Pai S; Yang H J; Wee P K P

来源：International Journal of Systems Science, 2010, 41(11): 1293-1300.

DOI：10.1080/00207720902957251

• replenishment interval
• cost
• price
• demand reduction
• Hi-tech industry
• perfect competition
• monopoly

For Hi-tech products, the demand rate, the component cost as well as the selling price usually decline significantly with time. Inthe case of perfect competition, shortages usually result in lost sales; while in a monopoly, shortages will be completely backordered. However, neither perfect competition nor monopoly exists. Therefore, there is aneed to develop areplenishment model considering ahybrid of perfect competition and monopoly when the cost, price and demand are decreasing simultaneously. A numerical example and sensitivity analysis are carried out to illustrate this model. The results show that a higher decline-rate in the component cost leads to asmaller service level and alarger replenishment interval. When the component cost decline rate increases and the selling price decline rate decreases simultaneously, the replenishment interval decreases. Inperfect competition it is better to have a high service level, while for the case with monopoly, keeping a low service level is better due to complete backordering.

• 出版日期2010
• 单位中国人民解放军国防大学