the revenue management concept and techniques are applied to model the coordination of supply chain elements. the fundamental premise of this approach is synchronization of a group of business entities consist-ing of a manufacturer and multiple suppliers to achieve an optimal supply chain capacity plans. the output of the supply chain can be various products and thus it is measured in terms of ...

When freeway traffic flow approaches capacity, minor disturbances or perturbations can cause unstable traffic streams to break down into queued or bottleneck conditions with the accompanying heavy congestion costs. As the traffic volume at which flow breaks down is uncertain, this research utilizes a stochastic capacity model to estimate congestion costs in terms of delays, fuel, and emissions....

Based on the stochastic concept for freeway capacity, the procedure of capacity estimation is developed. Due to the fact that it is impossible to observe the value of the capacity and to obtain the probability distribution of the capacity, the product-limit method is used in this paper to estimate the capacity. In order to implement estimation of capacity using this technology, the lifetime tab...

We consider a stochastic inventory control problem with Markovian capacity and the option of order rejection. We show its optimal policy to be the combination of a capacity-dependent modified base-stock production policy and a capacity-dependent critical-point order acceptance policy. When capacity is stochastically monotone, we show that the policy parameters change over the current capacity l...

Planning for capacity expansion forms a crucial part of the strategic level decision making in many applications. Consequently, quantitative models for economic capacity expansion planning have been the subject of intense research. However, much of the work in this area has been restricted to linear cost models and/or limited degree of uncertainty to make the problems analytically tractable. Th...