SINGLE-PERIOD PRODUCTION MODEL WITH UNCERTAIN OUTPUT AND DEMAND.

Yigal Gerchak, Raymond G. Vickson, Mahmut Parlar

Research output: Contribution to journalConference articlepeer-review

Abstract

Single-period production models with uncertain output and demand are analyzed under the assumption that the output level is a product of the input level and a random multiplier. The authors compare optimal input levels in situations in which cost is proportional to the input level to those in situations in which with cost is proportional to the (random) output level. It is shown that the optimal policies are, in general, not of the familiar 'order-up-to' type.

Original languageEnglish
Pages (from-to)1733-1736
Number of pages4
JournalProceedings of the IEEE Conference on Decision and Control
StatePublished - 1986
Externally publishedYes

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