This paper addresses the problem of aligning demand and supply in configure-to-order systems. Using stochastic programming methods, this study demonstrates the value of accounting for the uncertainty associated with how orders are configured. We also demonstrate the value of component supply...

We address the problem of rationing common components among multiple products in a configure-to-order system with order configuration uncertainty. The objective of this problem is to maximize expected revenue by implementing a threshold rationing policy. Under this policy, a product is available...