The capacity investment decision for make-to-order production systems with demand rate control

Consequently, without much loss in profit, for all cases the capacity investment decision can be based on the stochastic model with stationary demand, neglecting the possibility of influencing the demand rate. However, the profit that results from this investment, and the return-on-investment, should be determined from a model that includes the optimal demand rate policy, since the stationary stochastic model can significantly underestimate the profit and could lead to the abandonment of the investment.