OPTIMAL POLICIES FOR CAPACITY EXPANSION UNDER KNOWN DEMAND GROWTH

Abstract

The paper is concerned with optimal policies for a sequence of discrete capacity expansions in response to expected growth in demand over an arbitrary time interval. Demand refers to a single commodity. For each expansion, there are two decision variables: the size of the expansion and the time at which it occurs. Capacity expansion over time is a step function. Discounting is continuous. The problem is analogous to a class of inventory problems in which order quantities are substituted for capacity increases.

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Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1969
Accession Number
AD0708005

Entities

People

  • Malcolm W. Kirby

Organizations

  • University of California, Berkeley

Tags

Communities of Interest

  • C4I

DTIC Thesaurus Topics

  • Algorithms
  • Commodities
  • Computations
  • Computer Programming
  • Computers
  • Dynamic Programming
  • Economics
  • Equations
  • Investments
  • Money
  • Operations Research
  • Probability
  • Production
  • Random Variables
  • Sequences
  • Step Functions
  • Time Intervals

Fields of Study

  • Economics

Readers

  • Approximation Theory.
  • Life Cycle Cost Analysis
  • Logistics and Supply Chain Management.