In this paper, we consider a newsvendor who is going to invest on dedicated or flexible capacity, our goal is to find the optimal investment policy to maximize total profit while the newsvendor faces uncertainty in lead time and demand simultaneously. As highlighted in literature, demand is stochastic, while lead time is constant. However, in reality lead time uncertainty decreases newsvendor's...

In critical energy infrastructure sectors (e.g. electric power generation, natural gas transportation, oil refining capacity) maintaining certain level of excess capacity is socially valuable (as it serves to protect against unexpected market conditions) but not necessarily compatible with the incentives for individual firms in the market. In this paper, we develop a dynamic oligopoly model wit...

This paper applies financial option valuation methods to new wireless network capacity investment decision timing. In particular, we consider the case of network capacity for cellular telephone service. Given a cluster of base stations (with a certain traffic capacity per base station), we determine when it is optimal to increase capacity for each of the base stations contained in the cluster. ...

Future wireless communication system have to be designed to integrate features such as high data rates, high quality of service and multimedia in the existing communication frame work. Increased demand in wireless communication system has led to demand for higher network capacity and performance. Higher bandwidth, optimized modulation offer practically limited potential to increase the spectral...

Abstract The shipbuilding industry has been drastically affected by demand fluctuations. Currently, it faces intense global competition and a crisis because of an imbalance between supply demand. This is caused excess capacity. Organisation for Economic Co-operation Development considered adjusting the capacity to reduce based on forecast. On other hand, forecast complex issue influenced indire...