This paper reviews the literature on strategic capacity management concerned with determining the sizes, types, and timing of capacity investments and adjustments under uncertainty. Specific attention is given to recent developments to incorporate multiple decision makers, multiple capacity...

This article reviews the literature on strategic capacity management concerned with determining the sizes, types, and timing of capacity investments and adjustments under uncertainty. Specific attention is given to recent developments to incorporate multiple decision makers, multiple capacity...

Consider a firm that markets multiple products, each manufactured using several resources representing various types of capital and labor, and a linear production technology. The firm faces uncertain product demand and has the option to dynamically readjust its resource investment levels,...

This chapter, which is based on Chapter 9 in (18), aims to give an introduction and overview of risk management and of the techniques that operations managers can use to mitigate risks. We start the next section by describing the concept of risk management and viewing it as an ongoing 4-step...

We consider a firm that invests in capacity under demand uncertainty and thus faces two related but distinct types of risk: mismatch between capacity and demand and profit variability. Whereas mismatch risk can be mitigated with greater operational flexibility, profit variability can be...