This research, through the use of a functionally integrative performance model [PROD/CUST], examines the impact of 18 priority sequencing rules on the allocation of constrained and excess production capacity. The research offers several propositions regarding manufacturing and marketing decisions (e.g., customer mix, product mix, cost, price, capacity, customization, market dynamics) and their relation to capacity allocation and profitability and attempts to reveal strategies, under varying conditions, which maximize profit-impact.