Capacity, pricing and production under supply and demand uncertainties with an application in agriculture

We consider capacitated joint lot-sizing and pricing problems when supply and a price-sensitive demand are uncertain. In cases where there is excess capacity, the decision maker has the option to rent her capacity. We model the case where price and production quantity are determined before the yield is realized (joint decisions) as well as the case where the price is determined after the yield is known (sequential decisions). In the joint …