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Optimal policy for a mixed production system with multiple OEM and OBM products

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  • Zhang, Bin

Abstract

In the process of manufacture upgrade from original equipment manufacture (OEM) to own brand manufacture (OBM), the parallel OEM and OBM strategy is an important strategic choice for many manufacturing companies. This paper considers a mixed production system under this parallel strategy. The mixed system uses the common production capacity to produce multiple OEM and OBM products for fulfilling independent demands. A profit-maximization model is proposed for the mixed production problem. The structural properties of the solution and an efficient solution method for solving the proposed model are developed. Numerical results are provided for showing the efficiency of the proposed solution method and obtaining some managerial insights.

Suggested Citation

  • Zhang, Bin, 2011. "Optimal policy for a mixed production system with multiple OEM and OBM products," International Journal of Production Economics, Elsevier, vol. 130(1), pages 27-32, March.
    • Handle: RePEc:eee:proeco:v:130:y:2011:i:1:p:27-32
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    Cited by:

    1. Zhang, Bin, 2012. "Multi-tier binary solution method for multi-product newsvendor problem with multiple constraints," European Journal of Operational Research, Elsevier, vol. 218(2), pages 426-434.
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    3. Huarong Zhou & Shengbing He & Qinke Lyu, 2022. "A tripartite evolutionary game analysis of contract manufacturer's brand strategy decisions in global value chains," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2237-2248, September.
    4. Chen, Shieh-Liang & Liang, Hao-An, 2014. "Cause mapping of simple and complex marketing strategies," Journal of Business Research, Elsevier, vol. 67(1), pages 2867-2876.

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