Showing 1 - 10 of 16
We deal with a single or parallel machine manufacturing system with convex cost of holding and backlogging and develop a new rigorous analysis to address the problem. We provide the results needed for the vanishing discount approach used for aour analysis. In particular, we show that one can go...
Persistent link: https://www.econbiz.de/10014046437
This paper studies stochastic inventory problems with unbounded Markovian demands, ordering costs that are lower semicontinuous, and inventory/backlog (or surplus) costs that are lower semicontinuous with polynomial growth. Finite-horizon problems, stationary and nonstationary discounted-cost...
Persistent link: https://www.econbiz.de/10014047819
Business environments change over time. They are cyclic, show seasonality or just evolve over time. This is certainly true for customer demand. As a result, stationary demand distributions are crude approximations of true customer behavior at best. Yet, most classical stochastic inventory models...
Persistent link: https://www.econbiz.de/10014198970
We consider the problem of production control in a single machine, single product, unreliable manufacturing system facing a constant demand d. The goal is to minimize the expected average (per unit time) inventory/backlog costs. Under heavy traffic condition, i.e., when the average production...
Persistent link: https://www.econbiz.de/10014220023
We present an approach of hierarchical decision making in production planning and capacity expansion problems under uncertainty. We show that under reasonable assumptions, the strategic level management can base the capacity decision on aggregated information from the shopfloor, and the...
Persistent link: https://www.econbiz.de/10014220232
We present a new paradigm of hierarchical decision making in production planning and capacity expansion problems under uncertainty. We show that under reasonable assumptions, the strategic level management can base the capacity decision on aggregated information from the shop floor, and the...
Persistent link: https://www.econbiz.de/10014220373
This paper is concerned with the optimal production planning in a dynamic stochastic manufacturing system consisting of a single machine that is failure prone and facing a constant demand. The objective is to choose the rate of production over time in order to minimize the long-run average cost...
Persistent link: https://www.econbiz.de/10012906229
We consider two control problems on a finite horizon; one stochastic and the other deterministic. In both problems the running cost and the terminal cost are the same. The controllable input in both problems is of an additive nature with cost proportional to the input (which can be both positive...
Persistent link: https://www.econbiz.de/10012833274
We address the problem of finding an optimal financing mix of retained earnings and external equity for maximizing the value of a firm subject to random returns. The problem is formulated as a singular stochastic control for a diffusion process, and the value function satisfies a free-boundary...
Persistent link: https://www.econbiz.de/10012833301
An asymptotic analysis of a hierarchical manufacturing system with machines subject to breakdown and repair is presented. The machine fluctuations are much faster than the accumulation and discounting of costs, and this gives rise to a limiting problem in which the stochastic machine...
Persistent link: https://www.econbiz.de/10012834712