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The Multiregion Dynamic Capacity Expansion Problem, Part I

Author

Listed:
  • C. O. Fong

    (University of Malaya, Kuala Lumpur, Malaysia)

  • V. Srinivasan

    (Stanford University, Stanford, California)

Abstract

Consider the problem of determining a schedule of capacity expansions for m producing regions and a schedule of shipments from the regions to n markets so as to meet the market demands over a T -period planning horizon at minimum discounted capacity expansion and shipment costs. Both of these costs are assumed to be proportional to the amounts involved. The heuristic algorithm of this paper improves on feasible solutions by exchanging capacities between pairs of regions. The algorithm imbeds an optimization procedure to seek the best feasible solution in the direction specified by the heuristic. Computational results for both real and randomly generated problems show that the heuristic algorithm is computationally efficient and yields close to optimum solutions.

Suggested Citation

  • C. O. Fong & V. Srinivasan, 1981. "The Multiregion Dynamic Capacity Expansion Problem, Part I," Operations Research, INFORMS, vol. 29(4), pages 787-799, August.
    • Handle: RePEc:inm:oropre:v:29:y:1981:i:4:p:787-799
    DOI: 10.1287/opre.29.4.787
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    Citations

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    Cited by:

    1. Kimms, A, 1998. "Stability Measures for Rolling Schedules with Applications to Capacity Expansion Planning, Master Production Scheduling, and Lot Sizing," Omega, Elsevier, vol. 26(3), pages 355-366, June.
    2. Kai Huang & Shabbir Ahmed, 2009. "The Value of Multistage Stochastic Programming in Capacity Planning Under Uncertainty," Operations Research, INFORMS, vol. 57(4), pages 893-904, August.
    3. Kimms, Alf, 1996. "Stability measures for rolling schedules with applications to capacity expansion planning, master production scheduling, and lot sizing," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 418, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    4. Santos, Miguel Gueifão & Antunes, António Pais, 2015. "Long-term evolution of airport networks: Optimization model and its application to the United States," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 73(C), pages 17-46.
    5. Ahmed, Shabbir & Sahinidis, Nikolaos V., 2008. "Selection, acquisition, and allocation of manufacturing technology in a multi-period environment," European Journal of Operational Research, Elsevier, vol. 189(3), pages 807-821, September.
    6. Shabbir Ahmed & Nikolaos V. Sahinidis, 2003. "An Approximation Scheme for Stochastic Integer Programs Arising in Capacity Expansion," Operations Research, INFORMS, vol. 51(3), pages 461-471, June.
    7. A Dasci & G Laporte, 2005. "An analytical approach to the facility location and capacity acquisition problem under demand uncertainty," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(4), pages 397-405, April.
    8. E Aghezzaf, 2005. "Capacity planning and warehouse location in supply chains with uncertain demands," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(4), pages 453-462, April.

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