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On The Stochastic Sequential And Nonsequential Production Planning Problem, Shivaji Rao

Dissertations, Theses, and Capstone Projects

This dissertation examines a stochastic sequential and a non-sequential capacitated production planning problem (Bitran and Yanasse, Operations Research, 32, 5, 1984) where the demand of each period is a continuous random variable. The stochastic non-sequential production planning problem is at first examined with sequence independent and then with sequence dependent set-up costs and the worst case error determined when an approximate solution is obtained by solving the deterministic equivalent. We prove in general that the worst case error is not dependent on the nature of the set-up cost. Based on a result due to Huang, Ziemba and Ben-Tal (Operations Research, …