We study the structure of the optimal policies for a firm operating plants in different countries. The relative costs of production between the plants are assumed to vary over time due to economic and political factors such as exchange rates, inflation, taxes, and tariffs. Based on the costs,...

Motivated by a problem faced by a large manufacturer of a consumer product, we explore the interaction between production planning and capacity acquisition decisions in environments with demand growth. We study a firm producing multiple items in a multiperiod environment where demand for items...

This paper proposes planning models that will assist a flower grower with the land and flower variety allocation decisions in such a way that the revenues (or profits) are maximised over a given planning period. In particular, this paper presents models where the mix of flowers is modified...

A process system is designed for material transformations that produce certain functional chemicals while usually consuming large amounts of energy. Materials in process systems have long been the major focus of investigation to achieve better economic performance. Rising energy prices and...

A manufacturing facility produces multiple products in a make-to-stock manner, and unsatisfied demand is backordered. A simple production control policy is analyzed: When the amount of work-in-process inventory plus finished goods inventory for a particular product falls below a base stock...

We consider the problem of allocating demand arising from multiple products to multiple production facilities with finite capacity and load-dependent lead times. Production facilities can choose to manufacture items either to stock or to order. Products vary in their demand rates, holding and...

A production/inventory system is considered in which a single production facility produces items of a given type. The demand for the item is assumed to arrive according to a compound Poisson process. The time required to produce an item is assumed to follow an arbitrary distribution. An (s, S)...

This paper analyzes the impact on exhaustible resource markets of setup costs, a sparsely analyzed category of nonconvex production technologies. This paper proves that, even under idealized circumstances for competition, a competitive equilibrium will fail to exist in the presence of setup...

The paper provides a reconciliation of Lucas' paradox, based on fixed setup costs of new investments. With such costs, it does not pay a firm to make a "small" investment, even though such an investment is called for by marginal productivity conditions. Using a sample of 45 developed and...

This paper contributes to the economics of deforestation by presenting a formal, infinite horizon dynamic model describing the use of tropical forest resources. As an alternative to clearing the forest, a landowner has the option to sell it to an international carbon crediting program. The model...