Capacity Investment with Demand Learning

Published Online:https://doi.org/10.1287/opre.2016.1561

References

  • Aviv Y, Pazgal A (2005) A partially observed Markov decision process for dynamic pricing. Management Sci. 51(9):1400–1416.LinkGoogle Scholar
  • Azoury KS (1985) Bayes solution to dynamic inventory models under unknown demand distribution. Management Sci. 31(9):1150–1160.LinkGoogle Scholar
  • Bensoussan A, Çakanyildirim M, Sethi SP (2007) A multiperiod newsvendor problem with partially observed demand. Math. Oper. Res. 32(2):322–344.LinkGoogle Scholar
  • Besanko D, Doraszelski U, Lu LX, Satterthwaite M (2010) Lumpy capacity investment and disinvestment dynamics. Oper. Res. 58(4-Part-2):1178–1193.LinkGoogle Scholar
  • Besbes O, Muharremoglu A (2013) On implications of demand censoring in the newsvendor problem. Management Sci. 59(6):1407–1424.LinkGoogle Scholar
  • Besbes O, Zeevi A (2009) Dynamic pricing without knowing the demand function: Risk bounds and near-optimal algorithms. Oper. Res. 57(6):1407–1420.LinkGoogle Scholar
  • Boyacı T, Özer Ö (2010) Information acquisition for capacity planning via pricing and advance selling: When to stop and act? Oper. Res. 58(5):1328–1349.LinkGoogle Scholar
  • Burnetas A, Gilbert S (2001) Future capacity procurements under unknown demand and increasing costs. Management Sci. 47(7):979–992.LinkGoogle Scholar
  • Burnetas AN, Smith CE (2000) Adaptive ordering and pricing for perishable products. Oper. Res. 48(3):436–443.LinkGoogle Scholar
  • Chao X, Chen H, Zheng S (2009) Dynamic capacity expansion for a service firm with capacity deterioration and supply uncertainty. Oper. Res. 57(1):82–93.LinkGoogle Scholar
  • Chen L, Plambeck EL (2008) Dynamic inventory management with learning about the demand distribution and substitution probability. Manufacturing Service Oper. Management 10(2):236–256.LinkGoogle Scholar
  • Chen W, Dawande M, Janakiraman G (2014) Fixed-dimensional stochastic dynamic programs: An approximation scheme and an inventory application. Oper. Res. 62(1):81–103.LinkGoogle Scholar
  • Davis MHA, Dempster MAH, Sethi SP, Vermes D (1987) Optimal capacity expansion under uncertainty. Adv. Appl. Probab. 19(1):156–176.CrossrefGoogle Scholar
  • Dixit AK, Pindyck RS (1994) Investment Under Uncertainty (Princeton University Press, Princeton, NJ).CrossrefGoogle Scholar
  • Eberly JC, Van Mieghem JA (1997) Multi-factor dynamic investment under uncertainty. J. Econom. Theory 75(2):345–387.CrossrefGoogle Scholar
  • Eppen GD, Iyer AV (1997) Improved fashion buying with Bayesian updates. Oper. Res. 45(6):805–819.LinkGoogle Scholar
  • Ford Motor Company (2012) Profitable growth for all: Ford Motor Company 2012 Annual Report. Retrieved June 1, 2013. http://corporate.ford.com/doc/ar2012-2012%20Annual%20Report.pdf.Google Scholar
  • Freidenfelds J (1981) Capacity Expansion: Analysis of Simple Models with Applications (Elsevier North Holland, New York).Google Scholar
  • Gallego G (1992) A minmax distribution free procedure for the (Q,R) inventory model. Oper. Res. Lett. 11(1):55–60.CrossrefGoogle Scholar
  • Gong X, Chao X (2013) Technical note–Optimal control policy for capacitated inventory systems with remanufacturing. Oper. Res. 61(3):603–611.LinkGoogle Scholar
  • Huh WT, Janakiraman G (2010) On the optimal policy structure in serial inventory systems with lost sales. Oper. Res. 58(2):486–491.LinkGoogle Scholar
  • Huh WT, Rusmevichientong P (2009) A nonparametric asymptotic analysis of inventory planning with censored demand. Math. Oper. Res. 34(1):103–123.LinkGoogle Scholar
  • Huh WT, Levi R, Rusmevichientong P, Orlin JB (2011) Adaptive data-driven inventory control with censored demand based on Kaplan-Meier estimator. Oper. Res. 59(4):929–941.LinkGoogle Scholar
  • Kaminsky P, Yuen M (2014) Production capacity investment with data updates. IIE Trans. 46(7):664–682.CrossrefGoogle Scholar
  • Kwon HD, Lippman SA (2011) Acquisition of project-specific assets with Bayesian updating. Oper. Res. 59(5):1119–1130.LinkGoogle Scholar
  • Lariviere MA, Porteus EL (1999) Stalking information: Bayesian inventory management with unobserved lost sales. Management Sci. 45(3):346–363.LinkGoogle Scholar
  • Lovejoy WS (1991) A survey of algorithmic methods for partially observed Markov decision processes. Ann. Oper. Res. 28(1):47–65.CrossrefGoogle Scholar
  • Lovejoy WS (1993) Suboptimal policies, with bounds, for parameter adaptive decision processes. Oper. Res. 41(3):583–599.LinkGoogle Scholar
  • Luss H (1982) Operations research and capacity expansion problems: A survey. Oper. Res. 30(5):907–947.LinkGoogle Scholar
  • Manne AS (1967) Investments for Capacity Expansion, Size, Location, and Time-Phasing (MIT Press, Cambridge, MA).Google Scholar
  • Monahan GE (1982) State of the arts survey of partially observable Markov decision processes: Theory, models, and algorithms. Management Sci. 28(1):1–16.LinkGoogle Scholar
  • Murota K (2003) Discrete Convex Analysis (SIAM, Philadelphia).CrossrefGoogle Scholar
  • Power Assure (2009) Dynamic power management: Adjusting data center capacity in real-time. 2009 Data Center Efficiency Summit Case Studies, Silicon Valley Leadership Group. http://svlg.org/wp-content/uploads/2012/12/PowerAssure_cs.pdf. Retrieved May 27, 2015.Google Scholar
  • Scarf H (1959) Bayes solutions of the statistical inventory problem. Ann. Math. Statist. 30(2):490–508.CrossrefGoogle Scholar
  • Snow DC, Wheelwright SC, Wagonfield AB (2006) Genentech–capacity planning. Case Study, Harvard Business Publishing, Brighton, MA).Google Scholar
  • Treharne JT, Sox CR (2002) Adaptive inventory control for nonstationary demand and partial information. Management Sci. 48(5):607–624.LinkGoogle Scholar
  • Van Mieghem JA (2003) Capacity management, investment, and hedging: Review and recent developments. Manufacturing Service Oper. Management 5(4):269–302.LinkGoogle Scholar
  • Wang W, Ferguson M, Hu S, Souza GC (2013) Dynamic capacity investment with two competing technologies. Manufacturing Service Oper. Management. 15(4):616–629.LinkGoogle Scholar
  • Williams D (1991) Probability with Martingales (Cambridge University Press, Cambridge, UK).CrossrefGoogle Scholar
  • Zipkin P (2008) On the structure of lost-sales inventory models. Oper. Res. 56(4):937–944.LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.