A study on the strategy of capacity planning for operations of Taiwanese Investment Enterprises

Taiwanese Investment Enterprises operating in both sides of Taiwan Straits are faced with one of the strategic problems that they must consider how to allocate and use limited resources reasonably between both sides of Taiwan Straits. Choosing the liquid crystal display module (LCDM) plants located in the Yangtze River Delta as the research object, which are under one of the three largest TFT-LCD manufacturers in the world. The results of the performance evaluation by data envelopment analysis (DEA) model and cluster analysis indicated the direction for performance improvement. According to the conditions of returns to scale for different decision-making units, current production scale and operations location, the above aspects summarized indicates the intermediate-term capacity plan of the LCDM plants. The results of research puts forward the possible future production capacity adjustment strategies and specific adjustment measures for Taiwanese Investment Enterprises operating in both sides of Taiwan Straits.