Optimal Design of a Stochastic System with Dominating Fixed Costs**

Satinder K. Mullick

Journal of Financial and Quantitative Analysis, 1966, vol. 1, issue 3, 55-74

Abstract: Executives in a wide variety of formal organizations frequently face decisions involving changes in capacity of service capabilities. Usually these changes mean increases in manpower and/or capital expenditures for new facilities, but due to seasonality, or a decline in business, a decision may also involve the determination of whether to reduce the available capacity. These decisions generally are made by comparing the cost (or savings, which is a negative cost) of changing the service capability with the corresponding costs or risks of not being able to properly meet service requirements. In this paper, the problem described is one in which services are provided, and the cost, or risk, of not being able to meet service requirements is expressed by means of a queuing equation.

Date: 1966
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:jfinqa:v:1:y:1966:i:03:p:55-74_01

Access Statistics for this article

More articles in Journal of Financial and Quantitative Analysis from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().