We extend Graham’s (1981) welfare analysis under uncertainty to a dynamic environment where the agent can delay and obtain information. The dynamic willingness to pay locus unifies the concepts of option price, dynamic WTP, commitment costs and quasi-option value. Option price (dynamic WTP) corresponds to the ex ante WTP when the agent ignores (recognises) the learning opportunity. The commitme...

In manufacturing institutes the only access way to maximum profit is identifying the production mix of the products based on the limitations such as policies and politics, demand and production processes. This study identifies the constraints of a tile-manufacturing company including constraints in its production and demand line using LINGO software version 15, and identifying production bottle...

In this paper we analyze a supply contract for a single product that speci®es that the cumulative orders placed by a buyer, over a ®nite horizon, be at least as large as a (contracted upon) given quantity. We assume that the demand for the product is uncertain, and the buyer places orders periodically. We derive the optimal purchase policy for the buyer for a given total minimum quantity commit...

China has declared ambitious carbon emission reduction targets and will integrate increasing shares of variable renewables for the next decades. The implementation flexibility modification thermal power units deep peak regulation ancillary service market alleviates contradiction between rapid capacity growth limited system flexibility. This paper establishes three schemes two price rules simula...