In this article we model production technology in a state-contingent framework. Our model analyzes production under uncertainty without being explicit about the nature of producer risk preferences. In our model producers’ risk preferences are captured by the risk-neutral probabilities they assign to the different states of nature. Using a state-general state-contingent specification of technolo...

To maximize the daily production from an oil and gas field, mathematical optimization may be used to find the optimal operating point. When optimizing, a model of the system is used to predict the outcome for different operating points. The model is, however, subject to uncertainty, e.g., the gas oil ratio estimates may be imprecise. The uncertainty is often ignored, and what is known as the ex...

In situations where uncertain costs are shared over time, static cooperative game-theoretic models and solution concepts like the core may prove inadequate. This holds in multi-period supply chain settings where inventories, capacities and resources must be managed over time in the presence of uncertainty. Motivated by these applications, we propose dynamic linear production games under uncerta...

Motivated by a production planning problem in an actual global manufacturing network, we examine the impact of exchange-rate uncertainty ... namely the volatility in an& correlations among exchange rates ... on the choice of various optimal production policies and the conditions which lead to them. A two-stage stochastic program with recourse is developed that provides opportunities to hedge fi...