Title :
Stochastic capacity control with different delay times for expansion and reduction
Author :
Asl, Farshid Maghami ; Ulsoy, A. Galip
Author_Institution :
Dept. of Mech. Eng., Michigan Univ., Ann Arbor, MI, USA
Abstract :
A novel optimal solution, based on Markov decision theory, is presented for the capacity management problem with stochastic market demand and different delay times in expansion and reduction between the time capacity change is ordered and the time it is delivered. The optimal policy in this paper is presented as optimal boundaries representing the optimal capacity expansion and reduction levels inspired by optimal inventory control.
Keywords :
Markov processes; decision theory; delays; demand forecasting; stock control; Markov decision theory; capacity management problem; delay times; expansion; optimal boundaries; optimal inventory control; reduction; stochastic capacity control; stochastic market demand; Cost function; Decision theory; Delay effects; Engineering management; Inventory control; Manufacturing; Mechanical engineering; Production; Random variables; Stochastic processes;
Conference_Titel :
American Control Conference, 2003. Proceedings of the 2003
Print_ISBN :
0-7803-7896-2
DOI :
10.1109/ACC.2003.1240535
