The Effect of Technological Improvement on Capacity Expansion for Uncertain Exponential Demand with Lead Times Pak, Dohyun Pornsalnuwat, Nattapol Ryan, Sarah
dc.contributor.department Industrial and Manufacturing Systems Engineering 2018-02-16T10:10:58.000 2020-06-30T04:48:32Z 2020-06-30T04:48:32Z Thu Jan 01 00:00:00 UTC 2004 2004-01-01
dc.description.abstract <p>We formulate a model of capacity expansion that is relevant to a service provider for whom the cost of capacity shortages would be considerable but difficult to quantify exactly. Due to demand uncertainty and a lead time for adding capacity, not all shortages are avoidable. In addition, technological innovations will reduce the cost of adding capacity but may not be completely predictable. Analytical expressions for the infinite horizon expansion cost and shortages are optimized numerically. Sensitivity analyses allow us to determine the impact of technological change on the optimal timing and sizes of capacity expansions to account for economies of scale, the time value of money and penalties for insufficient capacity.</p>
dc.description.comments <p>The Version of record of this manuscript has been published and is available in Engineering Economist 2004, <a href="" target="_blank"></a>. Posted with permission.</p>
dc.format.mimetype application/pdf
dc.identifier archive/
dc.identifier.articleid 1028
dc.identifier.contextkey 7141661
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath imse_pubs/22
dc.language.iso en
dc.source.bitstream archive/|||Fri Jan 14 22:40:16 UTC 2022
dc.source.uri 10.1080/00137910490453301
dc.subject.disciplines Industrial Engineering
dc.subject.disciplines Systems Engineering
dc.subject.keywords capacity expansion
dc.subject.keywords demand growth
dc.subject.keywords random factors
dc.subject.keywords service providers
dc.subject.keywords communication satellites
dc.subject.keywords computational methods
dc.subject.keywords correlation methods
dc.subject.keywords costs
dc.subject.keywords dynamic programming
dc.subject.keywords electric power systems
dc.subject.keywords mathematical models
dc.subject.keywords plant expansion
dc.title The Effect of Technological Improvement on Capacity Expansion for Uncertain Exponential Demand with Lead Times
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isAuthorOfPublication 22d808f1-c309-4cb1-8d3e-14c57a6b96a9
relation.isOrgUnitOfPublication 51d8b1a0-5b93-4ee8-990a-a0e04d3501b1
Original bundle
Now showing 1 - 1 of 1
No Thumbnail Available
708.61 KB
Adobe Portable Document Format