Capital Accumulation and Production for the Firm: Optimal Dynamic Policies

In this paper we consider a firm that must make a production decision and a capital decision at periodic intervals of time. The cost of production is assumed to be convex and the firm is allowed to hold inventories. For a class of inventory and capital costs the optimal production and capital decisions are obtained for an n-period problem. The optimality criterion used is minimization of the expected present value of costs in the n periods.

• 저널Management Science · 12(3) · 193–205
• 토픽Economic theories and models · Economics and Econometrics
• DOI10.1287/mnsc.12.3.193
• 저자Donald L. Iglehart