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| Author: | Buzacott, J. A. Chaouch, A. B. |
| Title: | Capacity expansion with interrupted demand growth. |
| Journal: | European Journal of Operational Research
1988 : FEB, VOL. 34:1, p. 19-26 |
| Index terms: | FORECASTING DEMAND CAPACITY |
| Language: | eng |
| Abstract: | The effects of unforeseen demand plateaus on the capacity expansion problem of sizing and timing production facilities are examined. It is assumed that demand for capacity follows a stochastic process. That is, it is allowed for plateaus to happen at random future times and to continue for an uncertain duration. When the demand process is generated by an alternating renewal process, it is shown that demand plateau results in a modified discounting rate and a modified import cost. |
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