Topic
Average fixed cost
About: Average fixed cost is a research topic. Over the lifetime, 33 publications have been published within this topic receiving 413 citations.
Papers
TL;DR: A single-product single-location inventory system under periodic review, where excess demand is lost and the replenishment lead time is positive, shows that when the lost sales penalty becomes large compared to the holding cost, the relative difference between the cost of the optimal policy and the best order-up-to policy converges to zero.
Abstract: We study a single-product single-location inventory system under periodic review, where excess demand is lost and the replenishment lead time is positive. The performance measure of interest is the long-run average holding cost and lost sales penalty cost. For a large class of demand distributions, we show that when the lost sales penalty becomes large compared to the holding cost, the relative difference between the cost of the optimal policy and the best order-up-to policy converges to zero. For any given cost parameters, we establish a bound on this relative difference. Numerical experiments show that the best order-up-to policy performs well, yielding an average cost that is within 1.5% of the optimal cost when the ratio between the lost sales penalty and the holding cost is 100. We also propose a heuristic order-up-to level using two newsvendor expressions; in our experiments, the cost of this order-up-to policy is 2.52% higher, on an average, than the best order-up-to policy.
138 citations
68 citations
TL;DR: This paper studies several average-cost criteria for Markov control processes on Borel spaces with possibly unbounded costs to show the existence of a sample-path average cost (SPAC-) optimal stationary policy and within the class of stationary SPAC-optimal policies there exists one with a minimal limiting average variance.
Abstract: This paper studies several average-cost criteria for Markov control processes on Borel spaces with possibly unbounded costs. Under suitable hypotheses we show (i) the existence of a sample-path average cost (SPAC-) optimal stationary policy; (ii) a stationary policy is SPAC-optimal if and only if it is expected average cost (EAC-) optimal; and (iii) within the class of stationary SPAC-optimal (equivalently, EAC-optimal) policies there exists one with a minimal limiting average variance.
54 citations
Book•
17 Dec 2001
TL;DR: In this paper, the authors estimate the impact that supply costs, demographic and economic variables have on the decision to offer residential broadband services by controlling for the various factors that influence a firm's decision to enter a market and model the factors that explain the variation in the availability of broadband data services.
Abstract: Technology such as the Internet is becoming an important ingredient for economic and social advancement There is a growing national concern about the ability of all segments of the American society to be able to access and benefit from advanced telecommunications services In this research we estimate the impact that supply costs, demographic and economic variables have on the decision to offer residential broadband services By controlling for the various factors that influence a firm’s decision to enter a market, we model the factors that explain the variation in the availability of broadband data services The results from this analysis provide insights into a number of interesting academic and policy questions Consistent with previous research done on general Internet access, our results suggest that high-speed access to the Internet is more likely to be available in urbanized area As expected, the higher the line density, the more likely services are available Also, we found that the higher the average fixed cost, the less likely advanced technology will be deployed Our statistical analysis also suggests that residential customers in areas served by Regional Bell Operating Companies, all else equal, are equally likely to have high-speed access to the Internet as customers served by Independent telephone companies
50 citations
TL;DR: In this article, the authors focused on minimizing the total cost of the single mixed refrigerant (SMR) process based on the equipment cost equations considering equipment life expectancy, and the objective functions to be minimized include the total compression energy and the total annual cost, which is the sum of the annual capital cost and annual operating cost.
Abstract: This study mainly focuses on minimizing the total cost of the single mixed refrigerant (SMR) process based on the equipment cost equations considering equipment life expectancy. Moreover, the energy and cost analyses are performed by comparing optimization results with two different objectives. The objective functions to be minimized include the total compression energy and the total annual cost, which is the sum of the annual capital cost and annual operating cost. By the compression energy minimization, the operating cost is significantly reduced by 16.2% because the largest part of this cost is taken by electricity for the compression energy requirement. In addition, a 14.0% capital cost saving is realized by the energy minimization. The results of total cost minimization show a 16.0% operating cost reduction from the base case, which is a little lower compared to energy minimization, but the capital cost saving is dramatically higher at 28.3%. Through the cost analyses, it is found that the compressor...
47 citations
Related Topics (5)
Performance Metrics
| Year | Papers |
|---|---|
| 2016 | 2 |
| 2015 | 1 |
| 2014 | 4 |
| 2011 | 2 |
| 2009 | 2 |
| 2008 | 1 |