Demand volatility and production lead time oblige manufacturers of made-to-stock goods to use economic forecasts in deciding on production quantities. Manufacturers of finitely durable goods face an additional complication -- in making production decisions, they must consider not only the...

Demand volatility and production lead time oblige manufacturers of made-to-stock goods to use economic forecasts in deciding on production quantities. Manufacturers of finitely durable goods face an additional complication—in making production decisions, they must consider not only the...