A Note on the Relationship Among Capacity, Pricing, and Inventory in a Make‐to‐Stock System

We address the simultaneous determination of pricing, production, and capacity investment decisions by a monopolistic firm in a multi‐period setting under demand uncertainty. We analyze the optimal decision with particular emphasis on the relationship between price and capacity. We consider models that allow for either bi‐directional price changes or models with markdowns only, and in the latter case we prove that capacity and price are strategic substitutes.

• 저널Production and Operations Management · 20(1) · 143–151
• 토픽Supply Chain and Inventory Management · Management Information Systems
• DOI10.1111/j.1937-5956.2010.01193.x
• 저자Gad Allon, Assaf Zeevi