Angelus, Alexandar; Porteus, Evan L. - In: Management Science 48 (2002) 3, pp. 399-413
This paper derives the optimal simultaneous capacity and production plan for a shortlife-cycle, produce-to-stock good under stochastic demand. Capacity can be reduced as well as added, at exogenously set unit prices. In both cases studied, with and without carryover of unsold units, a target...