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Dhavale, 2005 - Google Patents

Cost considerations in optimal capacity acquisition: An option pricing approach

Dhavale, 2005

Document ID
5125736241417988181
Author
Dhavale D
Publication year
Publication venue
Journal of Management Accounting Research

External Links

Snippet

The optimal capacity choice is a tradeoff between the costs of shortage and excess capacity. This paper models the costs as the prices of an infinite number of European call and put options maturing continuously over the planning horizon. This approach allows a firm to …
Continue reading at publications.aaahq.org (other versions)

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