This article presents a comparative analysis of possible postponement strategies in a two-stage decision model where firms make three decisions: capacity investment, production (inventory) quantity, and price. Typically, investments are made while the demand curve is uncertain. The strategies...

We study how rework routing together with wage and piece rate compensation can strengthen incentives for quality. Traditionally, rework is assigned back to the agent who generates the defect (in a self routing scheme) or to another agent dedicated to rework (in a dedicated routing scheme). In...

Consider the following due-date scheduling problem in a multiclass, acyclic, single-station service system: any class k job arriving at time t must be served by its due date t D_{k}. Equivalently, its delay ¦Ó_{k} must not exceed a given delay or lead-time D_{k}. In a stochastic system the...

We introduce a class of models, called newsvendor networks, that generalizes the well-known newsvendor model along three dimensions. Newsvendor networks model the flow of multiple products through multiple processing and storage points over multiple time periods. Such models provide a...

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...

Commonality strategies assemble different products from at least one common component and one other product-specific component. The distinguishing feature of commonality, i.e., the presence of dedicated components to be assembled with a common component, is shown to be mathematically...