International Journal of Environmental Science and Development

Abstract—For some service facilities, the unused service capacity cannot be stocked overnight and will become a burden to the service provider. The main purpose of this article is to analyze the effects of seasonality on capacity choice decisions and examine the firm’s pricing strategies. We present a mathematical model and find that higher operating costs lead to lower service fees in booming seasons and higher service fee in normal seasons, but the capacity should be decreased; the higher proportion of booming seasons in a year results in higher service fee in booming seasons and lower service fee in normal seasons, and the capacity should be increased. The price markup in booming seasons is higher if the proportion of booming seasons increase, but lower if operating costs increase.

Index Terms—Expected costs, optimization, service capacity, seasonal demand.

F. C. Yang is with De Lin Institute of Technology, Taiwan (e-mail: yitui@ntunhs.edu.tw).
Y. T. Chen is with National Taipei University of Nursing and Health Sciences, Taiwan (e-mail: fuchiang@mail.hdut.edu.tw).

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Cite: Fu-Chiang Yang and Yi-Tui Chen, "Landscape Capacity for Supplying Ecosystem Services in Taiwan Alishan National Scenic Area," International Journal of Environmental Science and Development vol. 9, no. 3, pp. 74-81, 2018.