Production Capacity Allocation for Multi-Generational Products Based on Decision Tree Method

Lan Chen; Hui Yang; Hua Ming Song

doi:10.4028/www.scientific.net/AMR.853.514

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HomeAdvanced Materials ResearchAdvanced Materials Research Vol. 853Production Capacity Allocation for...

Production Capacity Allocation for Multi-Generational Products Based on Decision Tree Method

Abstract:

In this paper, we study the problem of how to allocate capacity for multi-generational products when a manufacture makes production decision. We establish a capacity allocation model for three generations of products and obtain the optimal allocation strategy by incremental decision tree analysis. Through the numerical experiment and parameter sensitivity analysis, we analyze the influence of products price, cost and salvage on the decision results. We also provide management implications for manufactures using decision-making tools to improve revenue.

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Periodical:

Advanced Materials Research (Volume 853)

Pages:

514-519

DOI:

https://doi.org/10.4028/www.scientific.net/AMR.853.514

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Online since:

December 2013

Authors:

Lan Chen*, Hui Yang, Hua Ming Song

Keywords:

Capacity Allocation, Decision Tree, Multi-Generational Products, Revenue Management

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