Built-to-order and make-to-stock competition with dynamic behavior of demand

This paper studies built-to-order (BTO) and make-to-stock (MTS) competition under dynamic demand. Market leader who operates under MTS (time postponement) and follower by build-to-order (form postponement) are manufactured according to the common platform. Postponement competition is taken into consideration from a motivation to avoid cannibalization among products and improves postponement competitiveness (product price and market share). This paper benchmarks between dynamic and static pricing game. The first simulation results show that dynamic game is superior over Cournot-Stackelberg. The second result shows that product substitutability gives significant impact to postponement competitiveness (price, quantity and profit). The final part of the paper concludes the results and outlines future research direction is discussed.