Optimal production run for a process with random linear drift

This paper considers the problem of selecting the optimal production run for a process with random linear drifts. A cost function per unit of finished product is derived. A search algorithm as well as a graphical method are suggested to find the optimal production run. Numerical examples are provided to illustrate how to determine the optimal production run. Finally, a sensitivity analysis of the model is performed.

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Year of publication:	1988
Authors:	Rahim, M. A. ; Banerjee, P. K.
Published in:	Omega. - Elsevier, ISSN 0305-0483. - Vol. 16.1988, 4, p. 347-351
Publisher:	Elsevier

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005121717