The optimal replacement policy for an asset subject to a stochastic deteriorating operating cost is determined for three different tax depreciation schedules and a known re-investment cost, as the solution to a two-factor model using a quasi-analytical method. We find that tax depreciation...

Firms that experience uncertainty in demand as well as challenging service levels face, among other things, the problem of managing employee shift numbers. Decisions regarding shift numbers often involve significant expansions or reductions in capacity, in response to changes in demand. In this...

The portfolio optimization problem has attracted researchers from many disciplines to resolve the issue of poor out-of-sample performance due to estimation errors in the expected returns. A practical method for portfolio construction is to use assets’ ordering information, expressed in the...

Robustness in Operations Research/Decision Aid is often associated with min–max and min–max regret criteria. This common approach to determine robust solutions consists in finding a solution which minimizes the maximal cost or regret. Nevertheless, these criteria are known to be too...

En este trabajo presentamos una reformulación de un lema de Lippman y McCall –inicialmente planteado para una única variable aleatoria– que permite que sea aplicado al caso de varias variables aleatorias, e ilustramos su utilización en la teoría de la empresa bajo incertidumbre. Llevamos...

This paper proposes a methodology for sitting and sizing wind distributed generators (WDGs). These generators are characterised by an uncertain active power production due to the random behaviour of the wind speed. The uncertain generation directly impacts the network total generation cost and...

This paper presents new concepts and methodological tools to decide the investments that electric distribution utilities must perform under regulatory frameworks based on performance (Performance Based Regulation or PBR). The proposal is focused on short-term investments. In this work, the...

This paper presents new concepts and methodological tools to decide the investments that electric distribution utilities must perform under regulatory frameworks based on performance (Performance Based Regulation or PBR). The proposal is focused on short-term investments. In this work, the...