Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
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The Decision Making Strategy for Determining the Optimal Production Time : A Stochastic Process and NPV Approach

최적생산시기 결정을 위한 의사결정전략 : 추계적 과정과 순현재가치 접근

  • 최종두 (한국디지털대학교 디지털경영학과)
  • Published : 2007.03.31
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Abstract

In this paper, the optimal decision making strategy for resource management is viewed in terms of a combined strategy of planting and producing time. A model which can be used to determine the optimal management strategy is developed, and focuses on how to design the operation of a Markov chain so as to optimize its performance. This study estimated a dynamic stochastic model to compare alternative production style and used the net present value of returns to evaluate the scenarios. The managers in this study may be able to increase economic returns by delaying produce in order to market larder, more valuable commodities.

Keywords

References

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