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Article: Managing capacity in the high-tech industry: a review of literature.
- Article from:
- Engineering Economist
- Article date:
- June 22, 2005
- Author:
CopyrightCOPYRIGHT 2005 Institute of Industrial Engineers, Inc. (IIE). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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BACKGROUND AND INTRODUCTION
In high-tech industries such as semiconductor, consumer electronics, telecommunications and pharmaceutical, a firm's ability to manage capacity is arguably the most critical factor for its long-term success. Even in a stable economy, the demand for high-tech products is volatile and difficult to forecast; the rapid rate of technology innovation causes short product lifecycles, low production yield and, oftentimes, long production lead time, all of which hamper the firm's ability to respond to market changes. Uncertain economic times exacerbate these challenges. Whereas in an environment of sustained demand growth, firms might build ...