n this paper the problem of capacity planning under risk from demand and price/cost uncertainty of the finished products is addressed. The deterministic model is extended into a two-stage stochastic model with fixed recourse by means of various expected levels of demand as random. A recourse penalty is also included in the objective for both shortage and surplus in the finished products. The mo...

daily sunshine duration is one of the factors influencing the size of solar panels in a photovoltaic system. when the system is designed and the number of system components is calculated, the average of sunshine hours is usually used. however, sunshine hours are less than average and we are faced to shortage and surplus of electricity in the winter and summer, respectively. in this paper due to...

this paper presents a new formulation for warehouse inventory management in a stochastic situation. the primary source of this formulation is derived from fp model, which has been proposed by fletcher and ponnambalam for reservoir management. the new proposed mathematical model is based on the first and the second moments of storage as a stochastic variable. using this model, the expected value...

The paper examines the contentious issue of the extent of surplus labour that remains in China. China was an extreme example of a surplus labour economy, but the rapid economic growth during the period of economic reform requires a reassessment of whether the second stage of the Lewis model has been reached or is imminent. The literature is inconclusive. On the one hand, there are reports of mi...

This paper presents a new formulation for warehouse inventory management in a stochastic situation. The primary source of this formulation is derived from FP model, which has been proposed by Fletcher and Ponnambalam for reservoir management. The new proposed mathematical model is based on the first and the second moments of storage as a stochastic variable. Using this model, the expected value...

School districts that adopt the Deferred Acceptance (DA) mechanism to assign students to schools face the tradeoff between fairness and efficiency when selecting how to break ties among equivalent students. We analyze a model with with random generated preferences for students and compare two mechanisms differing by their tie-breaking rules: DA with one single lottery (DA-STB) and DA with a sep...

We explain why a durable-goods monopolist would like to create a shortage during the launch phase of a new product. We argue that this incentive arises from the presence of a second-hand market and uncertainty about consumers' willingness to pay for the good. Consumers are heterogeneous and initially uninformed about their valuations but learn about them over time. Given demand uncertainty, fir...

To derive the supply and demand issues during the first phase of the Korea Emission Trading Scheme (KETS), we investigated the excess or shortage, and the carry-over inflow of carbon emission permits for all of the domestic industries and major corporations. In particular, this study explored the supply and future prospects of offset credits, as well as the allocated permits, by forecasting the...

The newsboy problem is a well-known operations research model. Its various extensions have been applied to managing capacity and evaluating advanced orders in manufacturing, retail and service industries. This paper focuses on a dynamic, continuous-time generalization of the single-period newsboy problem. The problem is characterized by a number of the newsboys whose operations are organized an...