Capacity Acquisition, Subcontracting, and Lot Sizing

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Capacity Acquisition, Subcontracting, and Lot Sizing

The fundamental question encountered in acquiring capacity to meet nonstationary demand over a multiperiod horizon is how to balance the trade-off between having insufficient capacity in some periods and excess capacity in others. In the former situation, part of the demand is subcontracted while, in the latter, capacity that has been paid for is rendered idle. Capacity and subcontracting decis...

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Capacitated Dynamic Lot Sizing with Capacity Acquisition

One of the fundamental problems in operations management is to determine the optimal investment in capacity. Capacity investment consumes resources and the decision is often irreversible. Moreover, the available capacity level affects the action space for production and inventory planning decisions directly. In this paper, we address the joint capacitated lot sizing and capacity acquisition pro...

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Capacity acquisition and subcontracting

The fundamental question encountered in acquiring capacity to meet nonstationary demand over a multi-period horizon is how to balance the tradeoff between having insufficient capacity in some periods and excess capacity in others. In the former situation part of the demand is subcontracted, while in the latter capacity that has been paid for is rendered idle. Capacity and subcontracting decisio...

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Competition under Capacitated Dynamic Lot Sizing with Capacity Acquisition

Lot-sizing and capacity planning are important supply chain decisions, and competition and cooperation affect the performance of these decisions. In this paper, we look into the dynamic lot sizing and resource competition problem of an industry consisting of multiple firms. A capacity competition model combining the complexity of time-varying demand with cost functions and economies os scale ar...

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ژورنال

عنوان ژورنال: Management Science

سال: 2001

ISSN: 0025-1909,1526-5501

DOI: 10.1287/mnsc.47.8.1081.10232