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                                                     Seminar

             Department of Systems Engineering and Engineering Management
                                  The Chinese University of Hong Kong

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Title

:

Coordinating capacity investments for joint ventures

　

　

　

Speaker

:

Prof. Philippe Chevalier

　

　

Louvain School of Management

　

　

Université catholique de Louvain, Belgium

　

　

　

Date

:

March 1st, 2010 (Monday)

　

　

　

Time

:

4:30 p.m. - 5:30 p.m.

　

　

　

Venue

:

Room 513

　

　

William M.W. Mong Engineering Building

　

　

(Engineering Building Complex Phase 2)

　

　

CUHK

　

　

　

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Abstract:
　

Joint venture problems are difficult because investment and operational decisions are linked together and need to be coherent. On the one hand, the operational decisions are constrained by the investment decisions; on the other hand, the operational decisions will influence the investment decisions in the sense that the attractiveness of the investment depends how operational decisions are expected to be made.

In this paper, we study joint ventures as a two-stage decision problem from the decentralized perspective: during the first stage the partners invest in common production capacities and during the second stage the facility is used to satisfy the demand of the partners given the capacity constraints linked to the investment decisions. The research question is to find efficient contracts that coordinate (i) the joint investment decisions and
(ii) the product mix decisions.

We are aiming at finding contracts which are easy to enforce, and efficient in their use of the capacity investment (in terms of system-optimal production level giving the capacity constraint ). We are also interested in checking the incentive compatibility of the different players.


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Biography:
　

Professor Philippe Chevalier is current with Louvain School of Management, Université catholique de Louvain, Belgium.

He obtained his Ph.D. in Operations Research from Massachusetts Institute of Technology and has published in Management Science, Operations Research, M&SOM, and POM. His current research interest includes stochastic models, management of operations, management of call centers, and supply chain management.


************************* ALL ARE WELCOME ************************

　

　

　

Host

:

Prof. Chen Youhua, Frank

Tel

:

(852) 2609-8310

Email

:

yhchen@se.cuhk.edu.hk

　

　

　

Enquiries

:

Prof. Nan Chen or Prof. Sean X. Zhou

　

:

Department of Systems Engineering and Engineering Management

　

　

CUHK

Website

:

http://www.se.cuhk.edu.hk/~seg5810

Email

:

seg5810@se.cuhk.edu.hk

　

　

　

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