A rational behavior of a consumer is analyzed when the user participates in a Peak Time Rebate (PTR) mechanism, which is a demand response (DR) incentive program based on a baseline. A multi-stage stochastic programming is proposed from the demand side in order to understand the rational decisions. The consumer preferences are modeled as a risk-averse function under additive uncertainty. The us...

The mesolimbic dopamine system is strongly implicated in motivational processes. Currently accepted theories suggest that transient mesolimbic dopamine release events energize reward seeking and encode reward value. During the pursuit of reward, critical associations are formed between the reward and cues that predict its availability. Conditioned by these experiences, dopamine neurons begin to...

In this paper, we explore the impact of input price variability and correlation in the context of an inventory system with stochastic demand and stochastic input prices. For a general class of such systems, we show that the expected cost function is concave in the input price. From this, it follows that higher input price variability in the sense of the convex order always leads to lower expect...

deregulation policy has caused some changes in the concepts of power systems reliability assessment and enhancement. in this paper, generation reliability is considered, and a method for its assessment using intelligent systems is proposed. also, because of power market and generators’ forced outages stochastic behavior, monte carlo simulation is used for reliability evaluation. generation r...

This paper presents a decision making approach for mid-term scheduling of large industrial consumers based on the recently introduced class of Stochastic Dominance (SD)constrained stochastic programming. In this study, the electricity price in the pool as well as the rate of availability (unavailability) of the generating unit (forced outage rate) is considered as uncertain parameters. The self...

In this work, we propose extending the production planning decisions of a chemical process network to include optimal contract selection under uncertainty with suppliers and product selling price optimization. We use three quantity-based contract models: discount after a certain purchased amount, bulk discount, and fixed duration contracts. We propose the use of general regression models to des...

Commodity price stabilisation schemes are again topical, this time as a result of pressure from UNCTAD for an integrated programme on commodities as part of the 'New International Order'. Despite the long history of interest in the subject and its evident importance for developing countries the conventional analysis of the impact of price stabilisation is remarkably simplistic.^ The theory was ...

This paper analyzes the manufacturers’ strategy of optimizing the direct rebate to the final customer and the wholesale price to a profit-maximizing retailer with a price-dependent stochastic demand. The manufacturer possesses full information about the cost and the functional relationship among demand, price and rebate, but may or may not know about the nature of the underlying demand uncertai...

In literature, most papers examine several stochastic demand processes where order lead times are constant. In reality, manufacturing firms use inventory management software, especially MRP, which ignored lead time uncertainty. It is true that in certain special cases, lead time uncertainty has essentially no effect and can be ignored. Nevertheless more often, lead time fluctuations strongly de...