The capacity investment decision for make-to-order production systems with demand rate control

J. Will M. Bertrand and Henny P.G. van Ooijen

International Journal of Production Economics, 2012, vol. 137, issue 2, 272-283

Abstract: In this paper we study the capacity investment decision for make-to-order manufacturing firms that utilize a fixed capacity, operate in a stochastic, stationary market, and can influence their demand rate by increasing or decreasing their sales effort. We consider manufacturing situations that differ in sales contribution, in market elasticity to sales effort, work-in-process costs, and demand sensitivity to lead time.

Keywords: Capacity investment; Make-to-order; Demand rate control; Lead time sensitivity (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:137:y:2012:i:2:p:272-283

DOI: 10.1016/j.ijpe.2012.02.010

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