Stochastic capacity control with different delay times for expansion and reduction

F.M Asl,A.G Ulsoy

doi:10.1109/acc.2003.1240535

Stochastic capacity control with different delay times for expansion and reduction

F.M Asl, A.G Ulsoy

https://doi.org/10.1109/acc.2003.1240535

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Publication Date: Jun 4, 2003

#Stochastic Market Demand #Markov Decision Theory + Show 8 more

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Abstract

A novel optimal solution, based on Markov decision theory, is presented for the capacity management problem with stochastic market demand and different delay times in expansion and reduction between the time capacity change is ordered and the time it is delivered. The optimal policy in this paper is presented as optimal boundaries representing the optimal capacity expansion and reduction levels inspired by optimal inventory control.

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