Optimal production output decisions under demand uncertainty

The article examines the optimal production output decisions problem in case of shift work and import opportunities over finite and infinite horizons in case the firm does not know the exact demand (informational uncertainty of demand). We develop the optimal production output strategy, which minimizes the expected total cost of production as the sum of direct and opportunity costs. The model is applied to global automobile companies.

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Year of publication:	2011
Authors:	Petrusevich, Andrey V.
Institutions:	Graduate School of Management, St. Petersburg State University
Subject:	mathematical modeling \| uncertainty of demand \| production output decisions \| production capacity \| value of information \| automobile industry \| supply chain management

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Series:	Scholarly Articles at Russian Management Journal.
Type of publication:	Book / Working Paper
Notes:	Number 360
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010904046