In planning and scheduling of production systems manufacturers have two main strategies for responding to uncertainty: they build inventory to hedge against periods in which the production capacity is not suucient to satisfy demand, or they temporarily increase the production capacity. We consider the problem of minimizing the long-run average cost of holding inventory and/or purchasing extra c...

Abstract   We extend the concept of dynamic pricing by integrating it with “overselling with opportunistic cancellation” option, within the framework of dynamic policy. Under this strategy, to sell a stock of perishable product (or capacity) two prices are offered to customers at any given time period. Customers are categorized as high-paying and low-paying ones. The seller deliberately oversel...

â â â  â â â â â  the aim of this paper is to simulate the effects of some macroeconomic policy tools on production and inflation of iran by the current worldwide financial and real crisis. the theoretical framework of the analysis is based on the so-called ‘imf/world bank integrated model’ which is the synthesis (a merger) of the basic monetary approach of the balance of payments used at t...

In this paper, we address the optimal joint control of inventory and transshipment for a firm that produces in two locations and faces capacity uncertainty. Capacity uncertainty (e.g., due to downtime, quality problems, yield, etc.) is a common feature of many production systems but its effects have not been explored in the context of a firm that has multiple production facilities. We first cha...

We generalize the guaranteed-service (GS) model for multi-echelon safety stock placement to include capacity constraints. We first develop an extension of the single-stage base-stock model to include a capacity constraint. We then use this result to model a multi-stage system with a base-stock operating policy. We establish that we can adapt the existing algorithms for the unconstrained case to...

We characterize the revenue maximizing policy in the dynamic and stochastic knapsack problem where a given capacity needs to be allocated by a given deadline to sequentially arriving agents. Each agent is described by a twodimensional type that re‡ects his capacity requirement and his willingness to pay per unit of capacity. Types are private information. We …rst characterize implementable poli...

OBJECTIVES To review and assess (i) the factors that facilitate the development of sustainable health policy analysis institutes in low and middle income countries and (ii) the nature of external support for capacity development provided to such institutes. METHODS Comparative case studies of six health policy analysis institutes (3 from Asia and 3 from Africa) were conducted. In each region ...