Optimal Production Output Decisions Under Demand Uncertainty
Abstract
Optimal Production Output Decisions Under Demand Uncertainty The article examines the optimal production output decisions problem in case of shift work and import opportunities over finite and infinite horizons in case the firm does not know the exact demand (informational uncertainty of demand). We develop the optimal production output strategy, which minimizes the expected total cost of production as the sum of direct and opportunity costs. The model is applied to global automobile companies.
Keywords:
mathematical modeling, uncertainty of demand, production output decisions, production capacity, value of information, automobile industry, supply chain management
Downloads
References
The List of References in Cyrillic Transliterated into Latin Alphabet
Downloads
Published
How to Cite
Issue
Section
License
Articles of the Russian Management Journal are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.