Optimal Exit Policy with Uncertain Demand

Optimal Ordering Policy with Stock-Dependent Demand Rate under Permissible Delay in Payments

We develop an inventory model to determine optimal ordering policy under permissible delay in payment by considering demand rate to be stock dependent. Mathematical models are derived under two different cases: credit period being greater than or equal to cycle time for settling the account, and credit period being less than or equal to cycle time for settling the account. The results are illus...

Optimal Fiscal Policy With Oil Revenues

An optimal policy for deteriorating items with time-proportional deterioration rate and constant and time-dependent linear demand rate

In this paper, an economic order quantity (EOQ) inventory model for a deteriorating item is developed with the following characteristics: (i) The demand rate is deterministic and two-staged, i.e., it is constant in first part of the cycle and linear function of time in the second part. (ii) Deterioration rate is time-proportional. (iii) Shortages are not allowed to occur. The o...

Capacitated Network Design with Uncertain Demand

We consider a capacity expansion problem arising in the design of telecommunication networks. The problem is to install capacity on links of the network so as to meet customer demand while minimizing total costs incurred. When studying this and related problems it is customary to assume that point to point demands are given. This will not be the case in practice, however, since future demand is...

Failure-prone production systems with uncertain demand

We consider a failure-prone manufacturing system with bursty demand arrivals. We prove that the hedging-point policy is optimal for this problem and provide analytical expressions to compute the hedging point. This allows us to compare our exact results to approximations provided by diiusion limits and large deviations. We also show that our result leads to the solution for the constant demand ...