The problem of choosing an optimal initial capacity expansion from a finite number of durable facility sizes is affected by potential future expansion decisions. As we consider such expansions over longer and longer study horizons, the optimal initial facility choice can fluctuate due to...

A model for measuring the economic benefits of irrigation system development over a depleting aquifer is presented, along with related methodology for detailed long-range farm planning. The paper considers management issues, such as distribution system configuration, drilling policy, area...

The multi-item joint replenishment problem is generalized to allow ordering costs to be dependent on the specific items jointly supplied. A fixed cycle approach is examined in which all the items of a group are always jointly replenished. A dynamic programming algorithm is developed for...

The process of converting a tree into finished lumber involves several interrelated steps. The two of greatest potential for improvement are cutting the felled tree into shorter logs (called bucking the tree) and sawing the bucked logs into lumber. Unlike previous work in the area, this paper...

Optimal solutions for the dynamic lot-sizing problem with deterministic demands but stochastic lead times are "lumpy." If lead time distributions are arbitrary except that they are independent of order size and do not allow orders to cross in time, then each order in an optimal solution will...

This paper presents a mathematical model of sequential investment behavior under conditions of uncertainty. The model addresses the problem of an investor with access to a limited pool of capital, who makes sequential decisions on long-lasting investments, under uncertainty as to the timing or...

This paper presents a dynamic programming algorithm for simultaneous determination of production batch sizes in an assembly network and distribution batch sizes in a conjoined distribution ("arborescent") network. The objective is to minimize average cost per period over an infinite horizon....

In many military and commercial contexts, complex equipment undergoes scheduled maintenance overhauls at regular intervals during which all failed components are replaced. Failure to have replacements on hand for all failed parts requires emergency measures at premium cost. When reparable parts...

This paper shows how an operational method for solving dynamic programs can be used, in some cases, to solve the problem of maximizing a firm's market value. The problem is formulated as a Markov decision problem that can be solved via linear programming. The paper shows how to calculate (or...

Existing theoretical models of research and development (R&D) treat R&D as a single economic activity. Once R&D terminates, the only way for the activity to resume is by assuming some exogenous changes in the basic parameters of the model, e.g., the distribution of technological advances. In...