Search

Price setting process through sealed bids mechanism for subcontracts of project activities is analyzed. A parsimonious stochastic model is used to compare expected price bids for three types of subcontracts, fixed price, cost plus, and menu contracts.

The problem of implementing an order-up-to-R replenishment policy in a periodic review inventory system with regular and emergency supply modes is examined under the assumption that the purchasing cost per unit is the same for both modes. Consequently, a model for solving the order-up-to level and the indifference inventory level is developed. It is suitable in situations where demand variance is high, the unit shortage cost is large, or the fixed order set-up cost for emergency supplies is small.

Uncapacitated network design problems subject to input data uncertainty were considered. Specifically, the concept of robustness was applied to the problem within a mixed integer programming framework to facilitate the development of algorithms based on extensions to the Benders decomposition method. The algorithms, which were implemented in VS FORTRAN, generated robust solutions for randomly generated problems.

An algorithm to create robust manufacturing system layout designs was developed. This approach for layout decision making was found to satisfy the requirements of a manufacturing systems designer. Moreover, the robustness approach involves long planning horizons and inaccurate information on production volumes, thus motivating the designer search for cost-effective layouts. The algorithm was also applied to problems with single period and multiple period planning horizons.