| Article ID: | iaor20105584 |
| Volume: | 58 |
| Issue: | 4-Part-1 |
| Start Page Number: | 834 |
| End Page Number: | 848 |
| Publication Date: | Jul 2010 |
| Journal: | Operations Research |
| Authors: | Rudi Nils, Chod Jiri, Pyke David |
| Keywords: | production |
We consider a manufacturer of mass-customized modular products who orders components under demand uncertainty, and sets prices, produces to order, and trades excess components in a secondary market after this uncertainty is resolved. The sequence of events reflects, in a parsimonious fashion, the considerable reduction in demand uncertainty between the procurement stage and the selling season, typical of industries with long supply lead times and short product life cycles.