Manufacturer Chooses Capacity

In this section we will look at scenarios in which the retailer waits for demands to be known before placing his order. The manufacturer has to order before the demands occur, so the manufacturer orders at time 0. 

Assume that retail demand follows a distribution with mean fx and standard deviation a. The retailer orders at L, after observing demand. Decisions have to be timed so that capacity is reserved by the manufacturer in advance of retailer order. However, the manufacturer selection of capacity will then restrict the retail demand that can be satisfied. This su ests the need to coordinate decisions made by the manufacturer with those that are ideal for the retailer. 

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Consider the case when the manufacturer and retailer are separate companies, each optimizing their profits. Because the manufacturer has to choose capacity to optimize his profits, he will consider the wholesale margin w — c — associated with a sale as against the loss associated with wasted capacity of c. The manufacturer will thus choose capacity to offer... 

Once the class and type of pump are selected, consult a rating table (Table 6.25) or rating chart (Fig. 6.18) to determine if a suitable pump is available from the manufacturer whose unit will be used. When the hydraulic requirements fall between two standard pump models, it is usual practice to choose the next larger size of pump, unless there is some reason why an exact head and capacity are required for the unit. When one manufacturer does not have the desired unit, refer to the engineering data of other manufacturers. Also keep in mind that some pumps are custom-built for a given job when precise head and capacity requirements must be met. 

This catalytic ammoxidation process was truly revolutionary. Since the introduction of this technology, INEOS has developed and commercialized several improved catalyst formulations. These catalyst advancements have improved yields and efficiencies vs. each prior generation to continually lower the cost to manufacture acrylonitrile. INEOS continues to improve upon and benefit from this long and successful history of catalyst research and development. In fact, many of INEOS s licensees have been able to achieve increased plant capacity through a simple catalyst changeout, without the need for reactor or other hardware modifications. INEOS s catalyst system does not require changeout overtime, unless the licensee chooses to introduce one of INEOS s newer, more economically attractive catalyst systems. 

Consider a supply chain consisting of a single manufacturer who produces a product and sells it to a retailer, who, in turn, sells the product to the final customer. Suppose that in order to produce the product, the manufacturer has to choose to reserve a capacity level A"at a cost per unit of Retail price per unit is r, the wholesale price is set at w, and the cost per unit to manufacture is set at c. This notation and description we follow is from Ozer and Wei [81]. 

Once the manufacturer and retailer decisions are made, the combined profit across the two firms is termed the supply chain profit. Notice that when the profits of the manufacturer and retailer are added together, the wholesale price level does not affect this total as it is merely a transfer payment from the retailer to the manufacturer. The supply chain as a whole thus attempts to choose a capacity level Kthat will maximize supply chain profit. 

Figure 5.2 shows the manufacturer, retailer and supply chain profits for different possible values of the manufacturer capacity. Notice from this picture that it is optimal for the manufacturer to choose a capacity of 17 units because that capacity maximizes the manufacturers profits. Notice, however, that the capacity level does not maximize the supply chain profits. This example illustrates that wholesale price agreements may not be able to coordinate a supply chain. 

The monopolist manufacturer, which has infinite capacity and no operating costs, sets the wholesale price in the intermediated channel. Intermediaries are uniformly distributed on a unit interval, differentiated by their per-item transaction cost ki. Each intermediary determines first whether to enter. On entering, an intermediary chooses a price pi to charge and buys an amount equal to the expected demand in each search period. is the equilibrium number of intermediaries (actually an interval size) who will be in the market. 

A manufacturer may also choose to add capacity with additional modules or entire packs in parallel rather than a parallel cell arrangement. All these options are available within BatPaC however, parallel cells result in the lowest cost battery pack. The use of parallel modules or packs may be for a number of reasons including manufacturing simplicity, perceived safety advantage, or volumetric constraints in the end product. 

Speed in RPM for obtaining the rated capacity and head. High-speed machines may cost less due to their smaller size but are more prone to breakdowns. However, the maximum speed permitted by the manufacturer should be asked for Performance curves capacity, head, power consumption, etc. at different speeds should be requested for. This will enable the purchaser to choose the most suitable model for his present as well as future needs. 

The production costs of a MZFR type fuel element which also apply to the fuel of the Atucha reactor amount at the present to approximately 55 of the total costs, with the balance of 4-5 for uranium and Zlrcaloy. It is thought that a significant reduction In future production costs is possible by rationalized manufacturing methods and standardized test procedures which go hand in hand with Increased production capacities. The uranium costs may be assumed to remain constant in the period under review. In the long run it is therefore advisable to choose that fuel element design which will benefit most by the expected production cost reduction. 

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