We consider capacity management with a long-term strategic choice, such as the number of production lines to install before demand is known, and short-time tactical decisions relating to production, inventory and subcontracting (recourse actions made after demand is known).[...]

We compare the benefits and costs of two alternative manufacturing network configurations inthe presence of component commonality. We evaluate the trade-off between the decreasedlogistics costs and loss of risk-pooling benefits in plant networks which consolidate allcomponent manufacturing...