We consider a heuristic for serial production systems with random yields and rigid demand: all usable units exiting a stage move forward. We calculate optimal lots and corresponding expected costs for binomial, interrupted-geometric, and all-or-nothing yields. Our method is that it makes it easy...

We consider partially observed Markov decision processes with control limits. We analytically show how the finite-horizon control limits are non-monotonic in (a) the time remaining and (b) the probability of obtaining a conforming unit. We also prove that the infinite-horizon control limit can...

The declining prices of new technology products often results ina tendency for many decision makers to wait for lower prices, andto postpone a capital investment.This paper makes a distinction between the prices of technologyelements and the prices of components and systems. There aremany cases...

The completion of a typical project hinges upon receiving all the purchased components by thetime they are scheduled to be used. Some of these components may have long stochastic leadtimes, so the project manager is tempted to order them ASAP, to avoid the (usual) high penaltiesassociated with...

Quality Control sampling plans are normally chosen by usingindustrial and military standards. These standards do notinvolve economic considerations, and usually fail to meet costconsiderations.The Information Economic approach presented in this papersuggests an easy to use methodology which...