Chaturvedi, Aadhaar; Martinez-de-Albeniz, Victor - 2021
diversification strategies. Observing that a modified base-stock inventory policy is optimal, we find that the capacity-diversification …. We find that higher supply uncertainty results in higher safety stock, more excess capacity, and higher diversification …. But safety stock and diversification are non-monotonic in demand uncertainty. Our results can be extended to situations in …