Multilevel Hierarchical Decision Making in Stochastic Marketing-Production Systems

Multilevel Hierarchical Decision Making in Stochastic Marketing-Production Systems
Author: Suresh Sethi
Publisher:
Total Pages: 26
Release: 2017
Genre:
ISBN:

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This paper presents an asymptotic analysis of hierarchical marketing-production systems with stochastic demand and stochastic production capacity modelled as finite state Markov processes. The decision variables used are advertising and production rates which influence capacity, demand, and inventory levels. The objective of this paper is to maximize the expected total discounted profit over an infinite horizon. The authors are interested in situations in which the rate of change in capacity states is an order of magnitude different from the rate of change in demand states. These give rise to upper-level problems in which the stochastic capacity is replaced by the average capacity and/or the random demand is replaced by the average demand. Controls for the corresponding lower-level problems in different cases can be constructed from nearly optimal controls of the upper-level problems in a way that guarantees their asymptotic optimality.

Hierarchical Decision Making in Stochastic Manufacturing Systems

Hierarchical Decision Making in Stochastic Manufacturing Systems
Author: Suresh P. Sethi
Publisher: Springer Science & Business Media
Total Pages: 420
Release: 2012-12-06
Genre: Technology & Engineering
ISBN: 146120285X

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One of the most important methods in dealing with the optimization of large, complex systems is that of hierarchical decomposition. The idea is to reduce the overall complex problem into manageable approximate problems or subproblems, to solve these problems, and to construct a solution of the original problem from the solutions of these simpler prob lems. Development of such approaches for large complex systems has been identified as a particularly fruitful area by the Committee on the Next Decade in Operations Research (1988) [42] as well as by the Panel on Future Directions in Control Theory (1988) [65]. Most manufacturing firms are complex systems characterized by sev eral decision subsystems, such as finance, personnel, marketing, and op erations. They may have several plants and warehouses and a wide variety of machines and equipment devoted to producing a large number of different products. Moreover, they are subject to deterministic as well as stochastic discrete events, such as purchasing new equipment, hiring and layoff of personnel, and machine setups, failures, and repairs.

Operations Research

Operations Research
Author: Jay E. Aronson
Publisher: IAP
Total Pages: 393
Release: 2009-04-01
Genre: Business & Economics
ISBN: 1607529254

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Drawn from a conference honoring Gerald L. Thompson, the pioneer of operations research, this volume brings together some of the latest writings of major figures in the field. The volume is divided into four parts: the first part reviews the career and significance of Thompson, the second concentrates on linear and nonlinear optimization, the third looks at network and integer programming, and the fourth provides examples of applications-oriented research in manufacturing. This volume will be an invaluable resource for all scholars and researchers involved in theory and methodology in operations research and management science.

Handbook of Stochastic Analysis and Applications

Handbook of Stochastic Analysis and Applications
Author: D. Kannan
Publisher: CRC Press
Total Pages: 808
Release: 2001-10-23
Genre: Mathematics
ISBN: 1482294702

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An introduction to general theories of stochastic processes and modern martingale theory. The volume focuses on consistency, stability and contractivity under geometric invariance in numerical analysis, and discusses problems related to implementation, simulation, variable step size algorithms, and random number generation.

Maintenance, Modeling and Optimization

Maintenance, Modeling and Optimization
Author: Mohamed Ben-Daya
Publisher: Springer Science & Business Media
Total Pages: 481
Release: 2012-12-06
Genre: Technology & Engineering
ISBN: 1461543290

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Production costs are being reduced by automation, robotics, computer-integrated manufacturing, cost reduction studies and more. These new technologies are expensive to buy, repair, and maintain. Hence, the demand on maintenance is growing and its costs are escalating. This new environment is compelling industrial maintenance organizations to make the transition from fixing broken machines to higher-level business units for securing production capacity. On the academic front, research in the area of maintenance management and engineering is receiving tremendous interest from researchers. Many papers have appeared in the literature dealing with the modeling and solution of maintenance problems using operations research (OR) and management science (MS) techniques. This area represents an opportunity for making significant contributions by the OR and MS communities. Maintenance, Modeling, and Optimization provides in one volume the latest developments in the area of maintenance modeling. Prominent scholars have contributed chapters covering a wide range of topics. We hope that this initial contribution will serve as a useful informative introduction to this field that may permit additional developments and useful directions for more research in this fast-growing area. The book is divided into six parts and contains seventeen chapters. Each chapter has been subject to review by at least two experts in the area of maintenance modeling and optimization. The first chapter provides an introduction to major maintenance modeling areas illustrated with some basic models. Part II contains five chapters dealing with maintenance planning and scheduling. Part III deals with preventive maintenance in six chapters. Part IV focuses on condition-based maintenance and contains two chapters. Part V deals with integrated production and maintenance models and contains two chapters. Part VI addresses issues related to maintenance and new technologies, and also deals with Just-in-Time (JIT) and Maintenance.

Continuous-Time Markov Chains and Applications

Continuous-Time Markov Chains and Applications
Author: George G. Yin
Publisher: Springer
Total Pages: 358
Release: 2012-12-06
Genre: Mathematics
ISBN: 1461206278

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Using a singular perturbation approach, this is a systematic treatment of those systems that naturally arise in queuing theory, control and optimisation, and manufacturing, gathering a number of ideas which were previously scattered throughout the literature. The book presents results on asymptotic expansions of the corresponding probability distributions, functional occupation measures, exponential upper bounds, and asymptotic normality. To bridge the gap between theory and applications, a large portion of the book is devoted to various applications, thus reducing the dimensionality for problems under Markovian disturbances and providing tools for dealing with large-scale and complex real-world situations. Much of this stems from the authors'recent research, presenting results which have not appeared elsewhere. An important reference for researchers in applied mathematics, probability and stochastic processes, operations research, control theory, and optimisation.

Optimal Control Theory

Optimal Control Theory
Author: Suresh P. Sethi
Publisher: Springer
Total Pages: 565
Release: 2018-11-28
Genre: Business & Economics
ISBN: 3319982370

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This fully revised 3rd edition offers an introduction to optimal control theory and its diverse applications in management science and economics. It brings to students the concept of the maximum principle in continuous, as well as discrete, time by using dynamic programming and Kuhn-Tucker theory. While some mathematical background is needed, the emphasis of the book is not on mathematical rigor, but on modeling realistic situations faced in business and economics. The book exploits optimal control theory to the functional areas of management including finance, production and marketing and to economics of growth and of natural resources. In addition, this new edition features materials on stochastic Nash and Stackelberg differential games and an adverse selection model in the principal-agent framework. The book provides exercises for each chapter and answers to selected exercises to help deepen the understanding of the material presented. Also included are appendices comprised of supplementary material on the solution of differential equations, the calculus of variations and its relationships to the maximum principle, and special topics including the Kalman filter, certainty equivalence, singular control, a global saddle point theorem, Sethi-Skiba points, and distributed parameter systems. Optimal control methods are used to determine optimal ways to control a dynamic system. The theoretical work in this field serves as a foundation for the book, which the author has applied to business management problems developed from his research and classroom instruction. The new edition has been completely refined and brought up to date. Ultimately this should continue to be a valuable resource for graduate courses on applied optimal control theory, but also for financial and industrial engineers, economists, and operational researchers concerned with the application of dynamic optimization in their fields.

Markovian Demand Inventory Models

Markovian Demand Inventory Models
Author: Dirk Beyer
Publisher: Springer Science & Business Media
Total Pages: 260
Release: 2009-10-03
Genre: Business & Economics
ISBN: 0387716041

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This text provides a superbly researched insight into Markovian demand inventory models. The result of ten years of research, this work covers all aspects of demand inventory where they are modeled by Markov processes. Inventory management is concerned with matching supply with demand and is a central problem in Operations Management. The central problem is to find the amount to be produced or purchased in order to maximize the total expected profit, or minimize the total expected cost.

SIAM Journal on Control and Optimization

SIAM Journal on Control and Optimization
Author: Society for Industrial and Applied Mathematics
Publisher:
Total Pages: 1008
Release: 1995
Genre: Control theory
ISBN:

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Handbook of Quantitative Supply Chain Analysis

Handbook of Quantitative Supply Chain Analysis
Author: David Simchi-Levi
Publisher: Taylor & Francis
Total Pages: 840
Release: 2004-05-31
Genre: Business & Economics
ISBN: 9781402079528

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The Handbook is a comprehensive research reference that is essential for anyone interested in conducting research in supply chain. Unique features include: -A focus on the intersection of quantitative supply chain analysis and E-Business, -Unlike other edited volumes in the supply chain area, this is a handbook rather than a collection of research papers. Each chapter was written by one or more leading researchers in the area. These authors were invited on the basis of their scholarly expertise and unique insights in a particular sub-area, -As much attention is given to looking back as to looking forward. Most chapters discuss at length future research needs and research directions from both theoretical and practical perspectives, -Most chapters describe in detail the quantitative models used for analysis and the theoretical underpinnings; many examples and case studies are provided to demonstrate how the models and the theoretical insights are relevant to real situations, -Coverage of most state-of-the-art business practices in supply chain management.