In the present paper, we consider the demand management decisions of a manufacturer facing stochastic demand. While in the previous literature, either the order release decisions are fixed upon arrival or a single-stage production environment is assumed, we make online order acceptance and order...

Many production systems cannot produce to stock and utilize capacity management to cope with variability in demand, for example Make-to-order (MTO) systems. Often, regular capacity can be increased through a flexible workforce, but the decision about the additional capacity must be made before...