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 …

This paper analyzes the impact of endogenous credit terms under capital market imperfections in a capacity investment … setting. We model a monopolist firm that decides on its technology choice (flexible versus dedicated) and capacity level under … demand uncertainty. Differing from the majority of the stochastic capacity investment literature, we assume that the firm is …

capacity and production costs to vary over time). We show that the unintuitive but optimal behavior of denying customers …Two recent papers on managing new product diffusion decisions under production constraints reach somewhat contradictory …-879) show that production constraints may in fact lead a firm to reject customers' orders even when the firm has the inventory …

Utilizing a cyclic queue system, this paper investigates the effect of variance on a multi-item production facility … examined, such as its relationship to KAIZEN and Just-In-Time production practices, and especially its property of impairing … capacity. …