We build a discrete time, serially correlated stochastic demand, nonstationary, finite horizon, capacity expansion model that includes (1) economies of scale in capacity costs, (2) positive expansion leadtimes, and (3) a fixed maximum cumulative capacity, called the shell size. When the shell...

Multi-stage decision processes are considered, in notation which is an outgrowth of that introduced by Denardo [Denardo, E. 1967. Contraction mappings in the theory underlying dynamic programming. SIAM Rev. 9 165-177.]. Certain Markov decision processes, stochastic games, and risk-sensitive...

Models in which process quality and lot sizing interact have recently been developed. Lot sizes should be reduced to compensate for poor quality if no effective inspection is possible. This note introduces an inspection delay time, measured in units produced after an inspection is made until...

This paper is motivated by the observation that the Japanese have devoted much time and energy to decreasing setup costs in their manufacturing processes and that there has been little in the way of a formal framework available to use to think about such efforts. The object of this paper is to...

This note considers the single product, single echelon, periodic review, stochastic, dynamic inventory model discussed recently [Porteus, E. L. 1971. On the optimality of generalized (s, S) policies. Management Sci. 17 411-426.], where the ordering cost function is concave increasing, rather...

A standard inventory model is examined with a concave increasing ordering cost function rather than simply a linear one with a setup cost. A generalized (s, S) policy is shown to be optimal in the n-period problem. A generalization of k-convex and quasi-convex functions to quasi-k-convex...

Our Bayesian dynamic programming model builds on existing models to account for inspection delay, choice of keeping production going during inspection and/or restoration, and lot sizing. We focus on describing how dynamic statistical process control (DSPC) rules can improve on traditional,...

Setup reduction is an important aspect of the Just-In-Time (JIT) and Zero Inventory (ZI) concepts. This paper looks at the increased effective capacity that results from setup reduction. A certain amount of time, as well as expense, is required for each setup within a multiproduct firm. By...