We present an approach for aircraft slot allocation, the air traffic flow planning, that takes into account the stochastic dimension of traffic demand versus airspace capacity. Our approach intuitively suggests the use of null-slots to absorb the uncertainty resulting in delays of aircraft. In this paper we study the trade-off between capacity lost and gain in reallocation time (reduction of de...

In this paper we study the capacity investment decision for make-to-order manufacturing firms that utilize a fixed capacity, operate in a stochastic, stationary market, and can influence their demand rate by increasing or decreasing their sales effort. We consider manufacturing situations that differ in sales contribution, in market elasticity to sales effort, work-in-process costs, and demand ...

in this paper, a high-order and conditionally stable stochastic difference scheme is proposed for the numerical solution of $rm ithat{o}$ stochastic advection diffusion equation with one dimensional white noise process. we applied a finite difference approximation of fourth-order for discretizing space spatial derivative of this equation. the main properties of deterministic difference schemes,...

in this paper, a stochastic two-stage model is offered for optimization of the day-ahead scheduling of the microgrid. system uncertainties including dispatchable distributed generation and energy storage contingencies are considered in the stochastic model. for handling uncertainties, monte carlo simulation is employed for generation several scenarios and then a reduction method is used to d...

The stochastic knapsack problem is a natural generalization of classical knapsack problem. In this problem, we are given a set of items each associated with a probability distribution on sizes and a profit, and a knapsack of unit capacity. The size of an item is unknown before inserting it into the knapsack, and it is revealed as soon as the item inserted into the knapsack. The objective is to ...

In this paper we consider a make-to-stock production system whose permanent production capacity can be increased temporarily by making use of some contingent resources, while this capacity acquisition has a constant lead time associated with it. We present a model where the capacity management problem is handled in an integrated manner with the inventory management, under non-stationary and sto...

This paper develops a general theory of sequential irreversible investments in capital where a firm has the option to expand its current capacity or just wait for better time. Facing economic uncertainty, the firm has an operating function of the current capacity and an exogenous stochastic factor modelled by semimartingale. This general model encompasses all previously studied models, includin...

The deterministic knapsack problem is a well known and well studied NP-hard combinatorial optimization problem. It consists in filling a knapsack with items out of a given set such that the weight capacity of the knapsack is respected and the total reward maximized. For a review of references on the stochastic knapsack problem, stochastic gradient algorithms and branch-and-bound methods see [4]...

In a manufacturing system with flexible capacity, inventory management can be coupled with capacity management in order to handle fluctuations in demand more effectively. A typical example is the effective use of temporary workforce. In this paper, we discuss an integrated model for inventory and flexible capacity management under nonstationary stochastic demand with the possibility of positive...