IDEAS home Printed from https://ideas.repec.org/a/inm/oropre/v32y1984i5p999-1018.html
   My bibliography  Save this article

Deterministic Approximations to Stochastic Production Problems

Author

Listed:
  • Gabriel R. Bitran

    (Massachusetts Institute of Technology, Cambridge, Massachusetts)

  • Horacio H. Yanasse

    (Instituto Nacional de Pesquisas Espaciais, Brazil)

Abstract

In this paper we consider deterministic approximations to a nonsequential stochastic production problem with setup costs. We show that, for the most commonly used probability distributions of the demands, the relative error bounds tend to be very small. We also consider a sequential stochastic problem, without setup costs, and discuss its relationship to the nonsequential case. Throughout the paper, we present limited computational results and indicate topics for further research.

Suggested Citation

  • Gabriel R. Bitran & Horacio H. Yanasse, 1984. "Deterministic Approximations to Stochastic Production Problems," Operations Research, INFORMS, vol. 32(5), pages 999-1018, October.
    • Handle: RePEc:inm:oropre:v:32:y:1984:i:5:p:999-1018
    DOI: 10.1287/opre.32.5.999
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/opre.32.5.999
    Download Restriction: no
    File URL: https://libkey.io/10.1287/opre.32.5.999?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tempelmeier, Horst, 2007. "On the stochastic uncapacitated dynamic single-item lotsizing problem with service level constraints," European Journal of Operational Research, Elsevier, vol. 181(1), pages 184-194, August.
    2. Bitran, Gabriel R. & Leong, Thin-Yin., 1989. "Deterministic approximations to co-production problems with service constraints," Working papers 3071-89., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    3. Minjiao Zhang & Simge Küçükyavuz & Saumya Goel, 2014. "A Branch-and-Cut Method for Dynamic Decision Making Under Joint Chance Constraints," Management Science, INFORMS, vol. 60(5), pages 1317-1333, May.
    4. Cattani, Kyle D., 2016. "Fenced in? Stochastic and deterministic planning models in a time-fenced, rolling-horizon scheduling systemAuthor-Name: DeYong, Gregory D," European Journal of Operational Research, Elsevier, vol. 251(1), pages 85-95.
    5. Hongmin Li & Stephen C. Graves & Woonghee Tim Huh, 2014. "Optimal Capacity Conversion for Product Transitions Under High Service Requirements," Manufacturing & Service Operations Management, INFORMS, vol. 16(1), pages 46-60, February.
    6. Grubbstrom, Robert W. & Wang, Zhiping, 2003. "A stochastic model of multi-level/multi-stage capacity-constrained production-inventory systems," International Journal of Production Economics, Elsevier, vol. 81(1), pages 483-494, January.
    7. Nicola Secomandi, 2008. "An Analysis of the Control-Algorithm Re-solving Issue in Inventory and Revenue Management," Manufacturing & Service Operations Management, INFORMS, vol. 10(3), pages 468-483, December.
    8. E A Silver, 2004. "An overview of heuristic solution methods," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(9), pages 936-956, September.
    9. Miguel A. Lejeune & Andrzej Ruszczyński, 2007. "An Efficient Trajectory Method for Probabilistic Production-Inventory-Distribution Problems," Operations Research, INFORMS, vol. 55(2), pages 378-394, April.
    10. Bitran, Gabriel R. & Leong, Thin-Yin., 1989. "Co-production of substitutable products," Working papers 3097-89., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    11. Schildbach, Georg & Morari, Manfred, 2016. "Scenario-based model predictive control for multi-echelon supply chain management," European Journal of Operational Research, Elsevier, vol. 252(2), pages 540-549.
    12. Elena Katok & William Tarantino & Terry P. Harrison, 2003. "Investment in production resource flexibility: An empirical investigation of methods for planning under uncertainty," Naval Research Logistics (NRL), John Wiley & Sons, vol. 50(2), pages 105-129, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:oropre:v:32:y:1984:i:5:p:999-1018. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.