Determining profit-maximizing production/shipping policies in a one-to-one direct shipping, stochastic demand environment

Article Abstract:

The problem of manufacturing and shipping a product from an origin to a destination facing stochastic demands with a known probability distribution is considered. The production rate and shipment size are treated as decision variables. Profit per unit produced is derived as a function of the production rate and shipment size. An iterative methodology is developed based on the concavity of the profit function on the production rate for the uniform demand distribution case to generate the optimum production/shipping policy. These assumptions are tested via Monte Carlo experiments.

Economic aspects, Profit, Profits, Freight transportation, Shipment of goods, Production functions (Economics)

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Development of a reliability based dynamic dredging decision model

Article Abstract:

Safety and cost-efficiency in water-borne transportation need reliable prediction of conditions that would affect the maintenance of navigation channels. A reliabilty-based dynamic dredging decision model that uses a simulation-optimization approach is developed to address this need. The model makes use of a Monte Carlo type uncertainty simulation and provides an evaluation of dredging costs based on variations of reliability levels for maintaining channels. Estimates on mobilization/demobilization costs can also be derived.

Hydraulic engineering, Dredging, Statistics (Mathematics), Reliability (Engineering)

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Monte Carlo analysis of convertible bonds with reset clauses

Article Abstract:

Convertible bonds are complex securities with several embedded options with a tradeoff between incremental gain in accuracy and computational complexity. The features of non-convertible bonds with reset clauses in the actual market using Monte Carlo method are discussed.

Japan, Security brokers and dealers, Securities & Commodities Services, Securities, Commodity Contracts, and Other Financial Investments and Related Activities, Analysis, Evaluation, Securities industry, Convertible bonds

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