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dc.contributor.authorAlp, O.en_US
dc.contributor.authorTan, T.en_US
dc.date.accessioned2016-02-08T11:38:48Z
dc.date.available2016-02-08T11:38:48Z
dc.date.issued2008en_US
dc.identifier.issn0740-817X
dc.identifier.urihttp://hdl.handle.net/11693/26893
dc.description.abstractIn many production systems a certain level of flexibility in the production capacity is either inherent or can be acquired. In that case, system costs may be decreased by managing the capacity and inventory in a joint fashion. In this paper we consider such a make-to-stock production environment with flexible capacity subject to periodic review under non-stationary stochastic demand, where we allow for positive fixed costs both for initiating production and for acquiring external capacity. Our focus is on tactical-level capacity management which refers to the determination of in-house production capacity while the operational-level integrated capacity and inventory management is executed in an optimal manner. We first develop a simple model to represent this relatively complicated problem. Then we elaborate on the characteristics of the general problem and provide the solution to some special cases. Finally, we develop several useful managerial insights as to the optimal capacity level, the effect of operating at a suboptimal capacity level and the value of utilizing flexible capacity.en_US
dc.language.isoEnglishen_US
dc.source.titleIIE Transactionsen_US
dc.relation.isversionofhttp://dx.doi.org/10.1080/07408170701488052en_US
dc.subjectCapacity managementen_US
dc.subjectFixed costsen_US
dc.subjectFlexible capacityen_US
dc.subjectInventoryen_US
dc.subjectOvertime productionen_US
dc.subjectProductionen_US
dc.subjectTemporary workforceen_US
dc.subjectCost effectivenessen_US
dc.subjectInventory controlen_US
dc.subjectJob analysisen_US
dc.subjectProductionen_US
dc.subjectCapacity managementen_US
dc.subjectFlexible capacityen_US
dc.subjectOvertime productionen_US
dc.subjectTemporary workforceen_US
dc.subjectIndustrial managementen_US
dc.titleTactical capacity management under capacity flexibilityen_US
dc.typeConference Paperen_US
dc.departmentDepartment of Industrial Engineering
dc.citation.spage221en_US
dc.citation.epage237en_US
dc.citation.volumeNumber40en_US
dc.citation.issueNumber3en_US
dc.identifier.doi10.1080/07408170701488052en_US
dc.publisherTaylor & Francisen_US
dc.identifier.eissn1545-8830


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