Optimal Capacity Expansion under Uncertainty
Capacity expansion is the process of providing new facilities over time to meet rising demand. A general mathematical model of this process is presented, incorporating uncertain future demand (including the possibility of 'surprises'), non-zero lead times and random cost overruns. In this...
| Veröffentlicht in: | Advances in Applied Probability. - Applied Probability Trust. - 19(1987), 1, Seite 156-176 |
|---|---|
| 1. Verfasser: | |
| Weitere Verfasser: | , , |
| Format: | Online-Aufsatz |
| Sprache: | English |
| Veröffentlicht: |
1987
|
| Zugriff auf das übergeordnete Werk: | Advances in Applied Probability |
| Schlagworte: | Stochastic control theory Piecewise-deterministic processes Dynamic programming Mathematics Economics Business Applied sciences Behavioral sciences |
| Zusammenfassung: | Capacity expansion is the process of providing new facilities over time to meet rising demand. A general mathematical model of this process is presented, incorporating uncertain future demand (including the possibility of 'surprises'), non-zero lead times and random cost overruns. In this model the decision maker controls the rate of investment in the current expansion project. Optimization is studied by methods of stochastic control theory. Numerical algorithms are presented which determine the optimal policy in some simple cases. |
|---|---|
| ISSN: | 00018678 |
| DOI: | 10.2307/1427378 |