This article studies optimal investment in flexible manufacturing capacity as a function of product prices (margins …

firms make three decisions: capacity investment, production (inventory) quantity, and price. Typically, investments are made … investment decision of the firm and its value. In contrast to production postponement, price postponement makes the investment … and production (inventory) decisions relatively insensitive to uncertainty. This suggests that managers can make optimal …

competitive stochastic investment game with recourse. The manufacturer and subcontractor decide separately on their capacity … production and sales. We analyze and present outsourcing conditions for three contract types: (1) price-only contractswhere an ex … state-dependent contracts can eliminate all decentralization costs and coordinate capacity investmentdecisions. The …

We develop a theoretical model of long-run investment decisions on capacity in the context of a liberalized electricity … the level of capacity that maximizes social welfare, and compare it to a decentralized outcome. We show that in the … absence of any regulation, private investment decisions on capacity unambiguously lead to a socially sub-optimal outcome, and …

prices in general depends on the merchant's inventory availability. This is a consequence of the interplay between the …This paper considers the so-called warehouse problem with both space and injection/withdrawal capacity limits. This is … capacity and space limits of the storage asset and brings to light the nontrivial nature of the interface between trading and …

availability of resources in that setting, are discussed as critical factors for the effective adaptation of organizations and …

a model in which facilities can produce output at a privately known cost up to a previously-determined capacity level …. In such a model, the amount of slack in the firm is shown to be pro-cyclical. Indeed, as capacity constraints become … capacity. …

hedge and suggest rules of thumb for strategic placement of safety capacity and inventory in networks: (1) Risk pooling … suggests rebalancing capacity toward inexpensive resources that serve lower-profit variance markets. This highlights the role … suggests rebalancing capacity toward substitutable flexible but away from shared capacity when markets differ in profitability …

-to-business (B2B) markets. Such options, on both capacity and output, play an important role in integrating long- and short …