Management game theory: manufacturing vs service enterprise type

Abstract

There are both sales and production centres in enterprises. The sales (demand) centre pursues the maximisation of revenue, whereas the production (supply) centre pursues the minimisation of cost. The problem is maximisation of the difference (profit), but is dependent on the cooperation of the two-centres. This two-centre model is first discussed in a job-shop model by Matsui (1983), and becomes very important to the demand-to-supply management in the SCM age. Recently, the two-centre model has been developed to a management game model (MGM) in Matsui (2002), and the ellipse theory with pair-pole is found on the pair-matrix table. In this paper, the service vs manufacturing type MGM is defined first, and the traffic accounting is introduced. Next, the service-type MGM is discussed on the existence of optimal traffic. Finally, the common ellipse theory is ascertained on the pair-matrix table, and the common usage is discussed under a strategic goal. In addition, a duality of produce-to-order and produce-to-stock systems is shown.