Pan, Jingming; Tang, Xiaowo; Ni, Debing A study on the supply chain capacity decision with flexibility based on the real option. (Chinese. English summary) Zbl 1079.90504 J. Univ. Electron. Sci. Technol. China 34, No. 2, 285-288 (2005). Summary: This paper applies the real-option approach to study the capacity decision in supply chain management under perfect competitive markets. Through analyzing the value of capacity investment decision, we give some rules of the capacity decision with flexibility. We also analyze the influence of three main factors upon the investment decision, which include the property of market evolvement, investment cost, and out of stock cost. The results show that a more (less) risky market, a higher (lower) capacity investment cost, or a lower (higher) out of stock cost is likely to postpone (advance) the implementing of capacity expansion. MSC: 90B05 Inventory, storage, reservoirs 91B28 Finance etc. (MSC2000) Citations:Zbl 0844.68062; Zbl 1065.68575 PDFBibTeX XMLCite \textit{J. Pan} et al., J. Univ. Electron. Sci. Technol. China 34, No. 2, 285--288 (2005; Zbl 1079.90504)