A continuous-time strategic capacity planning model

A Continuous-Time Strategic Capacity Planning Model*

Capacity planning decisions affect a significant portion of future revenue. In the semiconductor industry, they need to be made in the presence of both highly volatile demand and long capacity installation lead-times. In contrast to traditional discrete-time models, we present a continuous-time stochastic programming model for multiple resource types and product families. We show how this appro...

A Continuous-Time Strategic Capacity Planning Model Based on the Minimum-Cut Problem

The semiconductor industry has been one of the driving forces of the “new” economy. It boasts of the exponentially growing performance of semiconductor devices, coupled with rapidly decreasing chip prices; however, it faces highly volatile demands, and copes with astronomical fab costs, most of which can be attributed to tool costs. The leadtime for purchasing tools is between 6 and 18 months, ...

A General Strategic Capacity Planning Model under Demand Uncertainty

Capacity planning decisions affect a significant portion of future revenue. In equipment intensive industries, these decisions usually need to be made in the presence of both highly volatile demand and long capacity installation lead times. For a multiple product case, we present a continuous-time capacity planningmodel that addresses problems of realistic size and complexity found in current p...

A Reputation Strategic Model of Monetary Policy in Continuous Time

This paper develops a reputation strategic model of monetary policy with a continuous finite or infinite time horizon. By using the optimal stopping theory and introducing the notions of sequentially weak and strong rational expectation equilibria, we show that the time inconsistency problem may be solved with trigger reputation strategies not only for stochastic but also for non-stochastic set...

Strop: a Strategic Planning Model