scispace - formally typeset
Search or ask a question

Showing papers by "Indira Gandhi Institute of Development Research published in 1990"


Journal ArticleDOI
TL;DR: In this article, the reliability of mean-variance analysis was examined by examining the bias and variance-covariance matrix for the decision vector, and it was shown that decisions based on estimated parameters can have a large variance around the true optimum.
Abstract: The widely used mean-variance approach to decisions under uncertainty requires estimates of the parameters of the joint distribution of returns. When optimal behavior is determined using estimates, rather than the true values, the decision is a random variable. We consider the reliability of mean-variance analysis by examining the bias and variance-covariance matrix for the decision vector. The latter shows that decisions based on estimated parameters can have a large variance around the true optimum. The results show that optimal decisions can differ substantially from those based on meanvariance analysis.

20 citations


Journal ArticleDOI
TL;DR: In this paper, a multistage, single-product serial batch-production system is considered in which the demand is deterministic and cost factors, viz. inventory carrying, ordering, set-up, etc., are known, and a model is suggested which combines the purchasing policy of the raw materials and the production Policy of the finished product.
Abstract: In this paper, a multistage, single-product serial batch-production system is considered in which the demand is deterministic and cost factors, viz. inventory carrying, ordering, set-up, etc., are known. The objective is to minimize the total variable cost. A model is suggested which combines the purchasing policy of the raw materials and the production policy of the finished product. An experimental procedure is carried out to compare the model against a benchmark providing a lower bound for the total variable costs. The model is also compared with an instantaneous production-rate case. The results suggest that the model offers an interesting scope for heuristic procedures. The possible application domain of the model is also discussed.

8 citations