Mayorga, Maria E.; Ahn, Hyun-Soo - In: European Journal of Operational Research 212 (2011) 2, pp. 312-324
We evaluate the benefits of coordinating capacity and inventory decisions in a make-to-stock production environment. We consider a firm that faces multi-class demand and has additional capacity options that are temporary and randomly available. We formulate the model as a Markov decision process...