Capacity Reservation for Capital-Intensive Technologies
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Capacity Reservation for Capital-Intensive Technologies

Capacity Reservation for Capital-Intensive Technologies


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About the Book

Arguably the central problem in operations research and management science (OR/MS) addressed by e-Business is better coordination of supply and de- mand, including price discovery and reduction of transactions costs of buyer- seller interactions. In capital-intensive industries like chemicals and steel, the out-of-pocket costs of excess capacity and the opportunity costs of underuti- lized capacity have been important factors driving the growth of exchanges for improving demand and supply coordination through e-Business platforms. Stefan Spinler addresses in his dissertation one of the most interesting aspects of this evolution for OR/MS, the parallel development of long-term and short-term markets for capacity and output, accompanied by a range of exotic options and forwards as the basic mechanisms supporting transac- tions. This is a fascinating research topic because it builds on the powerful framework of real options, while connecting directly to key operations deci- sions (capacity planning, staffing, maintenance, and so forth) of the plants and technologies whose output is the focus of contracts. From the perspec- tive of practice, the use of these contracting mechanisms, as facilitated by a new breed of B2B exchanges, represents an opportunity for further improving supply chain performance and capital asset productivity.


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Product Details
  • ISBN-13: 9783540002871
  • Publisher: Springer
  • Publisher Imprint: Springer
  • Edition: 2003 ed.
  • Language: English
  • Returnable: N
  • Spine Width: 9 mm
  • Weight: 299 gr
  • ISBN-10: 3540002871
  • Publisher Date: 21 Jan 2003
  • Binding: Paperback
  • Height: 235 mm
  • No of Pages: 143
  • Series Title: Lecture Notes in Economic and Mathematical Systems
  • Sub Title: An Options Approach
  • Width: 156 mm


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