The Optimal Production Decision for Two-stage Programming of Negatively Correlated Market Size

摘要

Postponement strategy can match the product supply and market demand effectively. This paper set the two-stage programming model of negatively correlated market size for multi-product under postponement and non-postponement strategy respectively. And then, the Kuhn-Tucker theorem and converse reasoning method is applied to prove that the total market demand will influence the production decision. If the total demand size is lower, the non-postponed production will be applied, otherwise the postponed production will be adopted. Besides, the generic product can substitute each final product to meet market demand, which can verify the prerequisite of postponed production application, i.e. uncertain demand, otherwise if the demand of certain final product, is high, then the generic product will always be applied to it and it is no necessary to adopt the postponed production with higher production cost.