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The most recent optimization algorithm for (s, S) order policies with continuous demand was developed byFedergruen and …. Since the continuous case prohibits enumeration, this algorithm does notapply to continuous order quantity systems. In this … paper an efficient algorithm for continuous order quantity (s, S)policies is developed. A marginal cost approach is used for …
Persistent link: https://www.econbiz.de/10011318581
In a recent paper, Fisher et al. (2001) present a method tomitigate end-effects in lot sizing by including a valuation term for end-of-horizon inventory in the objective function of the short-horizon model. Computational tests show that the proposed method outperforms the Wagner-Whitin algorithm...
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We consider a model for a serial supply chain in which production, inventory, and transportation decisions are integrated, in the presence of production capacities and for different transportation cost functions. The model we study is a generalization of the traditional single-item economic...
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This paper distinguishes uncertainty types that differ continuously with respect to the degree to which uncertainty affects the optimal price/price markup or optimal quantity. A monopoly example is used to show that seemingly strong assumptions on functional forms can represent a wide variety of...
Persistent link: https://www.econbiz.de/10010532588
We study a two-stage R&D project with an abandonment option. Two types of uncertainty influence the decision to start R&D. Demand uncertainty is modelled as a lottery between a proportional increase and decrease in demand. Technical uncertainty is modelled as a lottery between a decrease and...
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In this era of globalization we see an increase in specialization: the production chain issplit up in more and more parts and the production of these parts is outsourced to thoseplaces in the world where production is relatively cheapest and most efficient. Itimplies that transaction costs,...
Persistent link: https://www.econbiz.de/10011380728