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 …

analysis into its medium-term capacity planning procedures and the effect of information aggregation on learning curve capacity … of medium-term capacity projections from the incorporation of learning curve analysis in firms with high rates of …

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

competitive stochastic investment game with recourse. The manufacturer and subcontractor decide separately on their capacity … state-dependent contracts can eliminate all decentralization costs and coordinate capacity investmentdecisions. The …

We analyze the competitive capacity investment timing decisions of both established firms and start-ups entering new … markets, which have a high degree of demand uncertainty. Firms may invest in capacity early (when uncertainty is high) or late … capacity level to maximize expected profits, whereas start-ups make those choices to maximize the probability of survival. When …