Capacity investments and technology decisions under regulatory uncertainty

Description

Understanding the capacity investment and technology decisions is vital for a firm particularly due to the fact that not meeting regulatory restrictions or insufficient investments could hurt the firm in the long run. Our aim in this paper is to study the investment decisions of companies considering potential risks of regulatory uncertainties that could alter previous investment decisions. We consider a firm facing random demand and uncertainties in the design regulatory standards. We find the firm's capacity investments and technology selection decisions to mitigate potential risks of regulatory uncertainties and demand uncertainties.

Publication Date

1-1-2016

DOI

10.1109/IEEM.2016.7797852

ISBN

978-1509036653||978-1509036646||978-1509036660

Publisher

IEEE Computer Society

Keywords

Capacity Investment, Regulation, Sourcing, Technology Choice

Conference

2016 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM): 4-7 December, 2016,

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