A Market Analysis on Green Production Lines Penetrating into Original Equipment Manufacturers (OEMs)

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2009-01-01
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Wang, Lizhi
Bidanda, Bopaya
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Wang, Lizhi
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Hu, Guiping
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Industrial and Manufacturing Systems Engineering
The Department of Industrial and Manufacturing Systems Engineering teaches the design, analysis, and improvement of the systems and processes in manufacturing, consulting, and service industries by application of the principles of engineering. The Department of General Engineering was formed in 1929. In 1956 its name changed to Department of Industrial Engineering. In 1989 its name changed to the Department of Industrial and Manufacturing Systems Engineering.
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Industrial and Manufacturing Systems Engineering
Abstract

Fierce market competition has been big obstacle in the growth process of sustainable/green production industry. Sustainable production lines often come into play by penetrating into traditional Original Equipment Manufacturers (OEMs). This is due to the high setup cost and opportunity risks. In this study, we look into the scenario when traditional Original Equipment Manufacturers (OEMs) introduce green production lines into their production systems. We want to address the questions whether and how the green production lines can survive in the market competitions. Analyses are conducted between ordinary and green production sectors which produce a similar type of product with different materials and techniques. A game theoretic model is formulated to analyze the competition in the market. Sensitivity analyses and numerical examples can provide suggestions to assist policy makers, government, company executives and consumers to make better and rational decisions.

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This is an article from Rio's International Journal on Sciences of Industrial and Systems Engineering and Management 3 (2009): 24. Posted with permission.

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Thu Jan 01 00:00:00 UTC 2009
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