| Article ID: | iaor2007563 |
| Country: | Netherlands |
| Volume: | 34 |
| Issue: | 5 |
| Start Page Number: | 508 |
| End Page Number: | 516 |
| Publication Date: | Sep 2006 |
| Journal: | Operations Research Letters |
| Authors: | Xu Ningxiong |
| Keywords: | stochastic processes, programming: dynamic |
This paper considers a class of multi-period flexible supply policies with options and capacity constraints. The main results are to characterize the optimal ordering and purchasing options policy and the minimum expected cost in a period and thereafter under the assumptions about the options and ordering quantities.