The second part of the thesis focuses on a different stochastic problem of finding the optimal hedging points in a manufacturing flow control system. Our simulation-based method allows solving large scale systems that are considered very difficult to solve by current standards in the literature.

We consider a competitive version of the traditional aggregate production planning model with capacity constraints. In the general case, multiple products are produced by a group of competing producers with limited capacities. Production quantities, prices and consequently profits depend on...