Lead time is one of the major limits that affect planning at every stage of the supply chain system. In this paper, we study a continuous review inventory model. This paper investigates the ordering cost reductions are dependent on lead time. This study addressed two-echelon supply chain problem consisting of a single vendor and a single buyer. The main contribution of this study is that the in...

As the energy transition transforms power grids across the globe it poses several challenges regarding grid design and control. In particular, high levels of intermittent renewable generation complicate the job of continuously balancing power supply and demand, which is necessary for the grid’s stability. Although there exist several proposals to control the grid, most of them have not demonstr...

In this paper we develop a vintage capital model for a firm involved in a market for tradable emission permits. We analyze both the firm's optimal investment plans and the market equilibrium. This allows us to scrutinize how firms use permits free endowment, and to highlight the implications of non-optimal uses both at the firm and at the market level. We provide a new rationale for the market ...

We consider a system which deteriorates with age and may experience a failure at any time instant. On failure, the system may be replaced or repaired. The repair can partially reset the failure intensity of the unit. Under a suitable cost structure it has been proved in the literature that the average-cost optimal policy is of control-limit type, i.e. it conducts a replacement if and only if, o...

Pricing and capacity management represent significant challenges for web publishers that generate revenues by selling advertising space on their websites. Advertisers approach a publisher to book an advertising campaign, requesting a number of impressions to be delivered regularly throughout the campaign duration. Publishers offer multiple advertising plans. They face uncertainty in demand and ...

A new approach to computation of optimal policies for MDP (Markov decision process) models is introduced. The main idea is to solve not one, but an entire family of MDPs, parameterized by a weighting factor ζ that appears in the one-step reward function. For an MDP with d states, the family of value functions {hζ : ζ ∈ R} is the solution to an ODE, d dζh ∗ ζ = V(hζ) where the vector field V : R...

Ridesharing platforms match drivers and riders to trips, using dynamic prices to balance supply and demand. A challenge is to set prices that are appropriately smooth in space and time, in the sense that drivers will choose to accept their dispatched trips, rather than drive to another area or wait for higher prices or a better trip. We introduce the Spatio-Temporal Pricing (STP) mechanism. The...

We introduce a Markov decision process in continuous time for the optimal control of a simple symmetrical immigration-emigration process by the introduction of total catastrophes. It is proved that a particular control-limit policy is average cost optimal within the class of all stationary policies by verifying that the relative values of this policy are the solution of the corresponding optima...

This article develops an integrated JIT lot-splitting model for a single supplier and a single buyer. In this model we consider reduction of setup time, and the optimal lot size are obtained due to reduced setup time in the context of joint optimization for both buyer and supplier, under deterministic condition with a single product. Two cases are discussed: Single Delivery (SD) case, and Multi...