hedge and suggest rules of thumb for strategic placement of safety capacity and inventory in networks: (1) Risk pooling …, flexibility (e.g., inventory substitution), and sharing (commonality). In contrast to single-resource settings, risk … suggests rebalancing capacity toward inexpensive resources that serve lower-profit variance markets. This highlights the role …

firms make three decisions: capacity investment, production (inventory) quantity, and price. Typically, investments are made … and production (inventory) decisions relatively insensitive to uncertainty. This suggests that managers can make optimal … capacity decisions by deterministic reasoning if they have some price flexibility. Under price postponement, additional …

which the supplier's reliability is either high or low and is the supplier's private information. On disruption, the …

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 …

customers when the firm has inventory of the product. On the other hand, in a very similar model, Kumar and Swaminathan (Kumar …-879) show that production constraints may in fact lead a firm to reject customers' orders even when the firm has the inventory … show that in their and Kumar and Swaminathan's (2003) models, it may be optimal to deny customers a product in inventory …

. Reduction in setup time, for example, is usually presumed to reduce inventory. We demonstrate that inventory can blow up if … capacity. …

facilities; (ii) the trade-off between capacity and inventory investments; and (iii) the trade-off between capacity investments …We address multi-item inventory systems with random and seasonally fluctuating, and possibly correlated, demands. The … manufactured. The production volumes in the first stage are bounded by given capacity limits. We develop an accurate lower bound …

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

on sales, profits, and capacity decisions, including the degree of capacity imbalance. We find that the benefit from … increased demand aggregation is closely linked to the degree of capacity imbalance: profit gains from delayed allocation tend to … be higher in systems in which the optimal capacity portfolio is highly unbalanced when the allocation decision is made …