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| Author: | Balakrishnan, N. |
| Title: | Robustness of capacity rationing policies |
| Journal: | European Journal of Operational Research
1999 : JUN 1, VOL. 115:2, p. 328-338 |
| Index terms: | OPERATIONAL RESEARCH POLICY CAPACITY |
| Language: | eng |
| Abstract: | A recent paper discusses a capacity rationing policy that allows make-to-order manufacturing firms encountering expected total demand in excess of available capacity to discriminate between two classes of products, one yielding a higher profit contribution per unit of capacity allocated to it than the other. The result is a selective rejection of orders for the class with lower unit contribution, yielding an increase in total profit when compared to a base case that implements no capacity rationing. |
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