Analysis of the supply and demand in the TFT-LCD market

A methodology for the analysis of the supply and demand in the Thin-Film Transitor (TFT)-liquid crystal display (LCD) market in 2004 is proposed. The quarterly history supply and demand data are collected from 63 factories in Taiwan, Korea, Japan, and China during 2000-2003. This method takes into the account supply, demand, and differences between supply/demand. For the supply, a heuristic approach is used to forecast the future supply. For the demand, a transfer function model is used to forecast the future demand. The difference analysis of the supply and demand shows that it can predict whether or not there appears to be a shortage in the market of 2004. In addition, three important managerial implications such as pricing strategy, product-mix decision, and customer's priority are discussed in this paper. (c) 2004 Elsevier Inc. All rights reserved.