Capacity Expansion with Imports and Inventories

Donald Erlenkotter
Additional contact information
Donald Erlenkotter: University of California, Los Angeles

Management Science, 1977, vol. 23, issue 7, 694-702

Abstract: Models for planning capacity expansion typically have excluded the possibility of using inventories to delay expansion decisions. In this paper some properties are derived for an optimal expansion plan allowing inventories, and a dynamic programming model is formulated for determination of optimal expansion, inventory, and import decisions under an assumption of linearly growing demand. Some computational results for the capacity expansion of India's aluminum industry indicate the roles for inventory and import decisions in an expansion plan, and the sensitivity of these decisions to changes in relative costs.

Date: 1977
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.23.7.694 (application/pdf)

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:inm:ormnsc:v:23:y:1977:i:7:p:694-702

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().