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Developing competitive price and production postponement strategies
Issue number 21
Vol.11 n°2 - 2010 Key Success Factors in SCM

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Abstract: This paper focuses on duopolistic competition under price and production postponement for two differentiable products that share component commonality. Both price and production postponement are benchmarked in order to investigate the component commonality effect on profit and also their appropriateness in different competition situations. The results show that production postponement is appropriate in situations of market expansion, price postponement to meet customer wants, and integrated price and production postponement for highly customized products. Price and production postponements offer an alternative way for managers to decide how to create products as fighting and mass-customized products. Innovative price and production postponement models represent the new contribution of this paper

Authors: Yohanes Kristianto, PhD student, University of Vaasa

Keywords: Game theory managerial flexibility market share postponement supply chain management

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