Resource pooling is a fundamental concept that has many applications in Operations Management for reducing and hedging uncertainty. An important problem in resource pooling is to decide (1) the capacity level of pooled resources in anticipation of random demand of multiple customers and (2) how...

The theoretical investigation of the effectiveness of limited flexibility has mainly focused on the performance metric that is based on the maximum sales in units. However, this could lead to substantial profit losses when the maximum sales metric is used to guide flexibility designs whereas the...