Solving nonstationary infinite horizon stochastic production planning problems. (English) Zbl 0971.90021
Summary: Forecast horizons are defined as long enough planning horizons that ensure agreement of first period optimal production decisions of finite and infinite horizon problems regardless of changes in future demand. In this paper, we prove forecast horizon existence and provide computational procedures for production planning problems that satisfy the following monotonicity property: for any fixed finite planning horizon, there exist first period optimal solutions that are monotone with respect to monotone changes in stochastic demand.
Keywords:
forecast horizons; planning horizons; optimal production decisions; production planning; stochastic demandReferences:
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