We develop a new model for studying the phenomenon of congestion in a transient environment, focusing on the problem of aircraft landings at a busy "hub" airport. Our model is based on a Markov/semi-Markov treatment of changes in the weather, the principal source of uncertainty governing service...

We examine pricing policy for a monopolist facing uncertain demand in a market characterized by dynamics on the demand side (such as diffusion or saturation effects) and/or on the cost side (experience curve effects). Our model explicitly incorporates the impact of demand uncertainty, and thus...

We study a basic continuous-time single-item inventory model where demands form a compound Poisson process and leadtimes are stochastic. The performance measure of interest is the long-run average cost. Order costs are linear, so a base-stock policy is optimal. We focus on the behavior of the...

Various research areas face the methodological problems presented by nonnegative integer count data drawn from heterogeneous populations. We present a disaggregate negative binomial regression procedure for analysis of count data observed for a heterogeneous sample of cross-sections, possibly...

This paper has two purposes. The first is purely expository: to introduce stochastic interest-rate models and security-evaluation methods in a simple mathematical setting. Specifically, we assume the uncertainties in the model are represented by a discrete-time, finite-state Markov chain....

This article presents an algebraic approach to formulating and solving large models for sequential decisions under uncertainty. With this approach, decision analysis optimization methods can be applied to complex decision problems which are generally analyzed in management science practice using...