We analyze how to value future costs and benefits when they must be discounted relative to the present. We introduce the subject for the nonspecialist and take into account the randomness of the economic evolution by studying the discount function of three widely used processes for the dynamics of interest rates: Ornstein-Uhlenbeck, Feller, and log-normal. Besides obtaining exact expressions fo...

Dynamic lot sizing problem is one of the significant problem in industrial units and it has been considered by  many researchers. Considering the quantity discount in  purchasing cost is one of the important and practical assumptions in the field of inventory control models and it has been less focused in terms of stochastic version of dynamic lot sizing problem. In  this paper, stochastic dyn...

We consider the optimization of nite-state, nite-action Markov Decision processes, under constraints. Costs and constraints are of the discounted or average type, and possibly nite-horizon. We investigate the sensitivity of the optimal cost and optimal policy to changes in various parameters. We relate several optimization problems to a generic Linear Program, through which we investigate sensi...

Abstract In this paper, Markov chain and dynamic programming were used to represent a suitable pattern for tax relief and tax evasion decrease based on tax earnings in Iran from 2005 to 2009. Results, by applying this model, showed that tax evasion were 6714 billion Rials**. With 4% relief to tax payers and by calculating present value of the received tax, it was reduced to 3108 billion Rials. ...

The transportation problems are primarily concerned with the optimal way in which products produced at different plants (supply origins) are transported to a number of warehouses or customers (demand destinations). The objective in a transportation problem is to fully satisfy the destination requirements within the operating production capacity constraints at the minimum possible cost. The obje...

An analysis was conducted to examine the market visibility of small aircraft as a transportation mode in competition with automobile and scheduled commercial air travel by estimating the pool of users that would potentially switch on-demand air travel due to cost/time saving. These new aircraft greatly increase the practicality of regional aircraft as a transportation mode that can avoid the co...

Background In Indonesia, 96% of children (< 24mo) are breastfed. However, only 42% of children (< 6mo) are exclusively breastfed, as per World Health Organization recommendations. Breastfeeding provides protective benefits such as reducing the risk of morbidity and mortality associated with diarrhea and pneumonia/respiratory disease (PRD). This study estimates the potential economic impact of n...