Dynamic Capacity Management with Substitution: Online Appendix
نویسندگان
چکیده
Proof. The first inequality follows from the fact that any allocation of capacity that is feasible in NV is also feasible in DYN, while DYN has the additional freedom to substitute products. The second follows from the fact that for a given demand realization D1,D2, ...,DT , any allocation decision available in DYN is also a feasible allocation in STC. In addition, there are allocation opportunities in STC that are not feasible in DYN because in STC, capacity is allocated to customers after the firm observes all demand.
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