A LIMITED ORDER CAPACITY STOCHASTIC INVENTORY MODEL WITH A FIXED COST FOR ORDER: THE DISCOUNTED CASE

This paper considers a single-item, periodic-review inventory model with linear ordercosts, a convex function representing expected one-period costs, nonegative i.i.d. demandsand a fixed cost for order. Stockouts are backordered. All data are stationary Both finiteand infinite horizon problems are treated.

Flow tracing based on current

Analyses the flow tracing based on power flow, points out that the detachment of reactive power and active power is unrealiable and concludes that the current is the real basic of flow tracing,and proposes the new flow tracing model based on current, which devides the current into active current and reactive current, analyses the theory about the matrix to deal with the precision and realization of the flow tracing, and then proposes a new pricing model by fixed rate and marginal rate, which keeps not only economy information such as congestion cost in marginal cost based pricing, but also benefits to make both ends meet.

Optimal Dividend-Equity Issuance Strategy in a Dual Model with Fixed and Proportional Transaction Costs

In this paper, we consider the problem of optimal dividend payout and equity issuance for a company whose liquid asset is modeled by the dual of classical risk model with diffusion. We assume that there exist both proportional and fixed transaction costs when issuing new equity. Our objective is to maximize the expected cumulative present value of the dividend payout minus the equity issuance until the time of bankruptcy,which is defined as the first time when the company＇s capital reserve falls below zero. The solution to the mixed impulse-singular control problem relies on two auxiliary subproblems： one is the classical dividend problem without equity issuance, and the other one assumes that the company never goes bankrupt by equity issuance.We first provide closed-form expressions of the value functions and the optimal strategies for both auxiliary subproblems. We then identify the solution to the original problem with either of the auxiliary problems. Our results show that the optimal strategy should either allow for bankruptcy or keep the company＇s reserve above zero by issuing new equity, depending on the model＇s parameters. We also present some economic interpretations and sensitivity analysis for our results by theoretical analysis and numerical examples.

Optimal Dividend Payout for Classical Risk Model with Risk Constraint

In this paper we consider the problem of maximizing the total discounted utility of dividend payments for a Cramer-Lundberg risk model subject to both proportional and fixed transaction costs. We assume that dividend payments are prohibited unless the surplus of insurance company has reached a level b. Given fixed level b, we derive a integro-differential equation satisfied by the value function. By solving this equation we obtain the analytical solutions of the value function and the optimal dividend strategy when claims are exponentially distributed. Finally we show how the threshold b can be determined so that the expected ruin time is not less than some T. Also, numerical examples are presented to illustrate our results.