2023
DOI: 10.3934/jimo.2022013
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Stochastic production planning with regime switching

Abstract: <p style='text-indent:20px;'>This paper considers a stochastic production planning problem with regime switching. There are two regimes corresponding to different economic cycles. A factory is planning its production so as to minimize production costs. We analyze this problem and the optimal production is characterized through an elliptic system of partial differential equations which can be numerically solved. We perform a sensitivity analysis for which we provide an intuition. A model risk analysis rev… Show more

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Cited by 5 publications
(2 citation statements)
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“…When a crisis occurs, the decision-makers of enterprises often face untimely, incomplete or even inaccurate information, which leads to the damage of corporate image or product reputation. Sometimes a crisis is enough to make the long-term investment of enterprises go down the drain, and the image is destroyed or even withdrawn from the market [3][4].…”
Section: Frequent Corporate Crisesmentioning
confidence: 99%
“…When a crisis occurs, the decision-makers of enterprises often face untimely, incomplete or even inaccurate information, which leads to the damage of corporate image or product reputation. Sometimes a crisis is enough to make the long-term investment of enterprises go down the drain, and the image is destroyed or even withdrawn from the market [3][4].…”
Section: Frequent Corporate Crisesmentioning
confidence: 99%
“…Inspired by [1,7] and [8], the recent work [4] considers a model with survival probability π(a) pseudo exponential, i.e.…”
Section: A Special Linear Population Modelmentioning
confidence: 99%