This paper develops a "perfect planning horizon procedure" for the simple cash balance problem, where the objective of the firm is to schedule the selling and buying of its earning assets so that all the positive demands are met at minimum cost. Demand for cash can be both positive or negative; a...

The purpose of the current paper is to combine the classical results of Kaplan (Kaplan, R. 1970. Dynamic inventory model with stochastic lead times. Management Sci. 16(2) 491--507.) and Ehrhardt (Ehrhardt, R. 1984. (s, S) Policies for a dynamic inventory model with stochastic lead times. Oper....

For the important special case that costs are linear and stationary over time, an improved algorithm is presented for the dynamic lot size model with backlogging which is comparable in difficulty to the standard no-backlogging algorithm. Planning horizon procedures analogous to those given by...

In Part I of this paper, we develop an algorithm for finding planning horizons for the deterministic production smoothing problem when all demand must be met from regular production, under rather general assumptions for the production, production smoothing, and holding cost functions. (In Part...

In Part I of this paper, we developed an algorithm for finding planning horizons for the deterministic production smoothing problem when all demand was required to be met from regular production, under rather general assumptions for the production, production smoothing, and holding cost...

Mainstream research in priority dispatching has considered jobs with equal delay penalties, thereby ruling out strategic differentiation of customer orders. We develop and test efficient dispatching rules for the weighted tardiness problem with job-specific due dates and delay penalties. Our...

The rate at which Markov decision processes converge as the horizon length increases can be important for computations and judging the appropriateness of models. The convergence rate is commonly associated with the discount factor \alpha . For example, the total value function for a broad set of...

By allowing disposal in each period, a sequence of upper and lower bounds on the infinite horizon nonstationary periodic review inventory problem is obtained. The nth bounds depend only on knowledge of the demand distributions in the first n periods, giving planning horizon results. In general,...

The problem of financing risky R&D projects over time has been stated as an optimal control problem by Hess [Hess, S. W. 1962. A dynamic approach to R&D budgeting and project selection. IRE Transactions on Engineering Management EM-9 (December) 170-178.], Lucas [Lucas, Robert E. 1971. Optimal...

Nonstationary stochastic periodic review inventory problems with proportional costs occur in a number of industrial settings with seasonal patterns, trends, business cycles, and limited life items. Myopic policies for such problems order as if the salvage value in the current period for ending...