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Under environmental regulations, the government restricts the economic activities of polluting OEMs (Original Equipment Manufacturers) in order to improve ecological and economic efficiency. The most direct measure is to limit the production capacity of the companies. Under the condition of limited capacity, the order selection strategy of OEMs will be the direct determinant of the company’s own profits. In the foundry market, there are many low-profit orders, while the number of high-profit orders is limited and uncertain. Companies who choose to wait for high-profit orders must bear the waiting costs and the risk of losing a certain profit. Therefore, it is of great significance for the long-term development of the company to select orders to obtain the best profit under the condition of limited production capacity. This paper takes polluting OEMs as the research object and studies the optimal order selection problems of companies under environmental regulations by establishing order selection decision models for different foundry cycles under the condition of limited production capacity. The study found that in the single foundry cycle, there will be an optimal waiting-time threshold for high-profit orders. Based on this optimal waiting-time threshold, the corresponding order selection strategy can be effectively formulated. However, in the multi-foundation cycle, since the optimal waiting-time threshold of high-profit orders is affected by the long-term average profit, the company’s optimal order selection strategy is based on the long-term average profit maximization.
Naiqian Zuo; Shiyou Qu; Chengzhang Li; Wentao Zhan. The Order Selection Strategy of Polluting OEMs under Environmental Regulations. Sustainability 2021, 13, 6835 .
AMA StyleNaiqian Zuo, Shiyou Qu, Chengzhang Li, Wentao Zhan. The Order Selection Strategy of Polluting OEMs under Environmental Regulations. Sustainability. 2021; 13 (12):6835.
Chicago/Turabian StyleNaiqian Zuo; Shiyou Qu; Chengzhang Li; Wentao Zhan. 2021. "The Order Selection Strategy of Polluting OEMs under Environmental Regulations." Sustainability 13, no. 12: 6835.
Purpose Customer-intensive services refer to the service that a provider needs to invest in customers with high patience and experience. Within a certain rate range, the slower service rate and the longer service time, the higher customer’s utility; however, this may cause queue congestion. And the advertising of service provider will affect the revenue. The purpose of this paper is to investigate the effects of advertising on the optimal price, service rate and the optimal revenue of such service provider at different development stages. Design/methodology/approach This paper investigates the service strategies of service provider based on advertising effects. The authors first divide service provider into insufficient customers or sufficient customers according to the development stage, then analyze the impact of advertising at different stages. The authors focus on the formulation of the optimal price, service rate and the optimal revenue of service provider at different stages. Findings This paper finds that in the insufficient customers stage, the service provider’s strategy of “small profits but quick turnover” is conducive to quickly accumulating customers. With the development of service provider, the advertising indirectly increases the revenue of service provider by maintaining popularity. The result also shows that with the development of service provider, the initiative of such service market has gradually been mastered by service provider, from “buyer market” to “seller market.” Originality/value The finding provides an alternative explanation for the impact of advertising on service provider’s optimal strategies; it also solves the settings of service price and rate of customer-intensive service provider at different development stages. This study is essential to create the optimal revenue and solve supply–demand conflicts (such as doctor–patient conflict) between service provider and customers.
Wentao Zhan; Minghui Jiang; Chengzhang Li. The service strategy of customer-intensive services under advertising effects. Kybernetes 2020, ahead-of-p, 1 .
AMA StyleWentao Zhan, Minghui Jiang, Chengzhang Li. The service strategy of customer-intensive services under advertising effects. Kybernetes. 2020; ahead-of-p (ahead-of-p):1.
Chicago/Turabian StyleWentao Zhan; Minghui Jiang; Chengzhang Li. 2020. "The service strategy of customer-intensive services under advertising effects." Kybernetes ahead-of-p, no. ahead-of-p: 1.