Mieghem, Jan A. Van; Dada, Maqbool - In: Management Science 45 (1999) 12, pp. 1639-1649
firms make three decisions: capacity investment, production (inventory) quantity, and price. Typically, investments are made … capacity decisions by deterministic reasoning if they have some price flexibility. Under price postponement, additional … that this also makes the optimal capacity decision more sensitive to uncertainty. We highlight the different impact of more …