Optimal Capacity Management With Stochastic Market Demand and Imperfect Information

2003 ◽  
Author(s):  
Farshid Maghami Asl ◽  
A. Galip Ulsoy
Keyword(s):  
Imperfect Information ◽  
Capacity Management ◽  
Management Problem ◽  
Market Demand ◽  
Economic Stability ◽  
New Approach ◽  
Optimal Capacity ◽  
Markov Decision ◽  
Reconfigurable Capacity ◽  
Stochastic Market

Over-capacity has been a major problem in the world economy over the past decade. Reconfigurable capacity, and optimal capacity management policies, can contribute to increased economic stability. This research introduces a new approach to optimal capacity management for a firm faced with uncertainties and imperfect information of the market demand. It presents an optimal policy for the capacity management problem in a firm facing stochastic market demand, based on Markov decision theory. To make the approach more realistic, it is assumed that the firm has imperfect information of its stochastic market demand, and can only observe its previous sales. Optimal policies are presented as boundaries representing the optimal capacity expansion and reduction levels.

Capacity Management in Reconfigurable Manufacturing Systems With Stochastic Market Demand

Manufacturing ◽  
2002 ◽  
Author(s):  
Farshid Maghami Asl ◽  
A. Galip Ulsoy
Keyword(s):  
Inventory Control ◽  
Manufacturing Systems ◽  
Optimal Solution ◽  
Capacity Management ◽  
Management Problem ◽  
Reconfigurable Manufacturing Systems ◽  
Reconfigurable Manufacturing ◽  
Market Demand ◽  
Management Scenario ◽  
Stochastic Market

An optimal solution, based on Markov Decision Theory, is presented for the capacity management problem in Reconfigurable Manufacturing Systems with stochastic market demand with a time delay 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. The effects of change in the cost function parameters and the delay time on the optimal boundaries are presented for a capacity management scenario. The major differences between this research and the ones in inventory control lie in two folds. One is the fact that unlike inventory, capacity levels can be reduced according to the market demand. The other one is the novel approach presented in this paper to solve the delay problem which unlike the inventory control does not account for the cumulative unmet demand as a decision factor.

scholarly journals A New Approach to Group Multi-Objective Optimization under Imperfect Information and Its Application to Project Portfolio Optimization

2021 ◽  
Vol 11 (10) ◽  
pp. 4575
Author(s):  
Eduardo Fernández ◽  
Nelson Rangel-Valdez ◽  
Laura Cruz-Reyes ◽  
Claudia Gomez-Santillan
Keyword(s):  
Portfolio Optimization ◽  
Imperfect Information ◽  
Model Parameters ◽  
Final Decision ◽  
Project Portfolio ◽  
Objective Functions ◽  
Multi Objective Optimization ◽  
New Approach ◽  
Multi Objective ◽  
Group Member

This paper addresses group multi-objective optimization under a new perspective. For each point in the feasible decision set, satisfaction or dissatisfaction from each group member is determined by a multi-criteria ordinal classification approach, based on comparing solutions with a limiting boundary between classes “unsatisfactory” and “satisfactory”. The whole group satisfaction can be maximized, finding solutions as close as possible to the ideal consensus. The group moderator is in charge of making the final decision, finding the best compromise between the collective satisfaction and dissatisfaction. Imperfect information on values of objective functions, required and available resources, and decision model parameters are handled by using interval numbers. Two different kinds of multi-criteria decision models are considered: (i) an interval outranking approach and (ii) an interval weighted-sum value function. The proposal is more general than other approaches to group multi-objective optimization since (a) some (even all) objective values may be not the same for different DMs; (b) each group member may consider their own set of objective functions and constraints; (c) objective values may be imprecise or uncertain; (d) imperfect information on resources availability and requirements may be handled; (e) each group member may have their own perception about the availability of resources and the requirement of resources per activity. An important application of the new approach is collective multi-objective project portfolio optimization. This is illustrated by solving a real size group many-objective project portfolio optimization problem using evolutionary computation tools.

New Methods of Technological Cooperation in Europe

1992 ◽  
Vol 6 (4) ◽  
pp. 229-238
Author(s):  
Helwig Schmied
Keyword(s):  
Basic Assumption ◽  
Research Collaboration ◽  
Management Problem ◽  
New Approach ◽  
New Methods ◽  
Technological Cooperation ◽  
Core Problem ◽  
And Robotics

This article is founded on the basic assumption that Europe taken as a whole possesses all the necessary resources to combat successfully any non-European competitor in the fields of technology, provided that it solves the management problem of organizing the coordination of those resources. At present, the author argues, they are dispersed and so underexploited. To contribute to the solution of this core problem, he sets out a new approach to research collaboration, using the example of the German–French Institute for Automation and Robotics to show ways in which HEIs can cooperate internationally to provide industry with what it needs to be truly competitive.

New Approach to Financial and Economic Stability in the United States from a Banking Perspective

2020 ◽  
Author(s):  
José Alejandro Fernández Fernández ◽  
Virginia Bejarano Vázquez ◽  
Juan Antonio Vicente Virseda
Keyword(s):  
United States ◽  
The United States ◽  
Economic Stability ◽  
New Approach

From Batch to Continuous Production Through Micro Process Technology: Chances and Challenges

2008 ◽  
Author(s):  
Stephan Scholl
Keyword(s):  
Continuous Production ◽  
High Viscosity ◽  
Batch Processes ◽  
Manufacturing Processes ◽  
Market Demand ◽  
Process Technology ◽  
Intermediate Phases ◽  
Stochastic Market

The majority of the manufacturing processes in the chemical, pharmaceutical, food or cosmetics industry is operated as batch processes. This is economically advantageous in cases where - capacities per product are low, in the range of 10 kg/a to 1000 t/a - many different educts have to be mixed and processed for the product, i.e. a recipe-based manufacturing, - many different but similar products have to be produced, - educts have to be fed at different times and with varying quantities, - educts show problematic properties such as high viscosity, solids or stickiness, - problematic processing behaviour such as fouling, foaming, viscous intermediate phases or undesired precipitation, is found, - manufacturing has to meet a sometimes stochastic market demand or - the process consist of only a few process steps like mixing, heating, reaction and cooling.

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