search query: @indexterm DECISION MODELS / total: 288
reference: 15 / 288
| Author: | Archibald, T. W. |
| Title: | Should Start-up Companies Be Cautious? Inventory Policies Which Maximise Survival Probabilities |
| Journal: | Management Science
2002 : SEP, VOL. 48:9, p. 1161-1174 |
| Index terms: | DECISION MODELS INVENTORY CONTROL COMPANIES |
| Language: | eng |
| Abstract: | New start-up companies, which are considered to be a vital ingredient in a successful economy, have a different objective than established companies: They want to maximise their chance of long-term survival. The authors examine the implications for their operating decisions of this different criterion by considering an abstraction of the inventory problem faced by a start-up manufacturing company. The problem is modeled under two criteria as a Markov decision process; the characteristics of the optimal policies under the two criteria are compared. It is shown that although the start-up company should be more conservative in its component purchasing strategy than if it were a well-established company, it should not be too conservative. |
SCIMA