@unpublished{miis120, month = {June}, title = {An Optimal Strategy for Maintaining Excess Capacity }, author = {Daya Gaur}, year = {1998}, url = {http://www.maths-in-industry.org/miis/120/}, abstract = {Boeing is a manufacturing industry with very low production volumes of very large units. As such, they experience huge fluctuations in demand. A standard inventory model dictates massive changes in production capacity as demand varies. However all such models assume a continuous production stream. In this report we investigate the following question whether such a model is sensible in a problem of such large scale granularity. We describe a combination of stochastic, financial and simulation models to model the production of airplanes. A preliminary simulation of the model is also presented.} }