Iyer, Ananth V.; Deshpande, Vinayak; Wu, Zhengping - In: Management Science 49 (2003) 8, pp. 983-1002
In this paper, we analyze demand postponement as a strategy to handle potential demand surges. Under demand … are postponed. The basic idea is that by preempting stockouts through demand postponement, we can reduce overall stockout … costs. We formulate and solve a two-stage capacity planning problem under demand postponement. We propose a power range …
