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Deterministic Approximations to Stochastic Production Problems

Deterministic Approximations to Stochastic Production Problems

Authors :
Horacio Hideki Yanasse
Gabriel R. Bitran
Source :
Operations Research. 32:999-1018
Publication Year :
1984
Publisher :
Institute for Operations Research and the Management Sciences (INFORMS), 1984.

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.

Details

ISSN :
15265463 and 0030364X
Volume :
32
Database :
OpenAIRE
Journal :
Operations Research
Accession number :
edsair.doi...........add53261eb75bade6c4925d4b2ba664d
Full Text :
https://doi.org/10.1287/opre.32.5.999