Abstract
We consider a problem of finding optimal production output when the product price is fi xed and de mand is not stochastic but unknown-the firm meets with informational uncertainly. We get the op timal multi-step strategy to find production output, which minimizes the expected total cost of pro duction (including alternative costs). The case of constant rale changes in demand is considered. It is necessary to treat differently fi nite-step and infinite-step models. The potential of the model is illustrated on the case of the product policy in ZAO “Ford Motor Company” in 2000s.
Keywords
Stochastic model, production output, demand uncertainty, optimal strategy.
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