Multi-stage decision processes are considered, in notation which is an outgrowth of that introduced by Denardo [Denardo, E. 1967. Contraction mappings in the theory underlying dynamic programming. SIAM Rev. 9 165-177.]. Certain Markov decision processes, stochastic games, and risk-sensitive...

Models in which process quality and lot sizing interact have recently been developed. Lot sizes should be reduced to compensate for poor quality if no effective inspection is possible. This note introduces an inspection delay time, measured in units produced after an inspection is made until...

This paper is motivated by the observation that the Japanese have devoted much time and energy to decreasing setup costs in their manufacturing processes and that there has been little in the way of a formal framework available to use to think about such efforts. The object of this paper is to...

This note considers the single product, single echelon, periodic review, stochastic, dynamic inventory model discussed recently [Porteus, E. L. 1971. On the optimality of generalized (s, S) policies. Management Sci. 17 411-426.], where the ordering cost function is concave increasing, rather...

A standard inventory model is examined with a concave increasing ordering cost function rather than simply a linear one with a setup cost. A generalized (s, S) policy is shown to be optimal in the n-period problem. A generalization of k-convex and quasi-convex functions to quasi-k-convex...

Our Bayesian dynamic programming model builds on existing models to account for inspection delay, choice of keeping production going during inspection and/or restoration, and lot sizing. We focus on describing how dynamic statistical process control (DSPC) rules can improve on traditional,...

Setup reduction is an important aspect of the Just-In-Time (JIT) and Zero Inventory (ZI) concepts. This paper looks at the increased effective capacity that results from setup reduction. A certain amount of time, as well as expense, is required for each setup within a multiproduct firm. By...

Pricing and quantity decisions are critical to many firms across different industries. We study the joint price/quantity newsvendor model where only a single quantity and price decision is made, such as a fashion or holiday product that cannot be replenished and where the price is advertised...

This paper derives the optimal simultaneous capacity and production plan for a shortlife-cycle, produce-to-stock good under stochastic demand. Capacity can be reduced as well as added, at exogenously set unit prices. In both cases studied, with and without carryover of unsold units, a target...

Concurrent design can reduce the time required to develop new products and redesign old ones. In contrast to the conventional approach, in which the product design is (nearly) completed before it is "thrown over the wall" to the process design group, concurrent design for manufacturability, as...