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dc.contributor.authorMincsovics, Gergely
dc.contributor.authorJeunet, Jully
dc.contributor.authorDellaert, Nico
dc.date.accessioned2010-04-27T09:50:57Z
dc.date.available2010-04-27T09:50:57Z
dc.date.issued2011
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/4010
dc.language.isoenen
dc.subjectStochasticen
dc.subjectCapacity planningen
dc.subjectContingent workersen
dc.subjectBudget allocationen
dc.subjectNon-linear stochastic dynamic programmingen
dc.subjectOptimizationen
dc.subject.ddc003en
dc.subject.classificationjelM12en
dc.subject.classificationjelM51en
dc.titleBudget Allocation for Permanent and Contingent Capacity under Stochastic Demanden
dc.typeArticle accepté pour publication ou publié
dc.description.abstractenWe develop a model of budget allocation for permanent and contingent workforce under stochastic demand. The level of permanent capacity is determined at the beginning of the horizon and is kept constant throughout, whereas the number of temporary workers to be hired must be decided in each period. Compared to existing budgeting models, this paper explicitly considers a budget constraint. Under the assumption of a restricted budget, the objective is to minimize capacity shortages. When over-expenditures are allowed, both budget deviations and shortage costs are to be minimized. The capacity shortage cost function is assumed to be either linear or quadratic with the amount of shortage, which corresponds to different market structures or different types of services. We thus examine four variants of the problem that we model and solve either approximately or to optimality when possible. A comprehensive experimental design is designed to analyze the behavior of our models when several levels of demand variability and parameter values are considered. The parameters consist of the initial budget level, the unit cost of temporary workers and the budget deviation penalty/reward rates. Varying these parameters produce several trade-offs between permanent and temporary workforce levels, and between capacity shortages and budget deviations. Numerical results also show that the quadratic cost function leads to smooth and moderate capacity shortages over the time periods, whereas all shortages are either avoided or accepted when the cost function is linear.en
dc.relation.isversionofjnlnameInternational Journal of Production Economics
dc.relation.isversionofjnlvol131
dc.relation.isversionofjnlissue1
dc.relation.isversionofjnldate2011
dc.relation.isversionofjnlpages128-138
dc.relation.isversionofdoihttp://dx.doi.org/10.1016/j.ijpe.2010.03.002en
dc.description.sponsorshipprivateouien
dc.relation.isversionofjnlpublisherElsevieren
dc.subject.ddclabelRecherche opérationnelleen


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