One of the fundamental problems in operations management is to determine the optimal investment in capacity. Capacity investment consumes resources and the decision is often irreversible. Moreover, the available capacity level affects the action space for production and inventory planning...

Consider a dynamic decision making model under risk with a fixed planning horizon, namely the dynamic capacity control model. The model describes a firm, operating in a monopolistic setting and selling a range of products consuming a single resource. Demand for each product is time-dependent and...

Companies today generally hold several thousands SKUs (stock-keeping units) in stock. With an ever increasing trend towards highly customized products, the number of SKUs held by companies is likely to increase even more in the future. For each of the SKUs held in stock, a decision has to be...

In many implemented network revenue management systems, a bid price control is being used. In this form of control, bid prices are attached to resources, and a product is offered if the revenue derived from it exceeds the sum of the bid prices of its consumed resources. This approach is...

Consider a dynamic decision making model under risk with a fixed planning horizon, namely the dynamic capacity control model. The model describes a firm, operating in a monopolistic setting and selling a range of products consuming a single resource. Demand for each product is time-dependent and...

Production reports from a set of Chinese factories reveal very rapid productivity growth from 1980 to 1991. To understand the underlying factors, the effects of work effort and labor organization are separated from the productivity estimates. Data analysis reveals that these two effects jointly...