doi: 10.7763/IJIMT.2011.V2.126
Flexible Investment Design
Agus Ristono1,2
- 1Department, University of Pembangunan Nasional “Veteran”, Yogyakarta, Indonesia 55281.
- 2Electrical Engineering Department, University of Colorado, Boulder, CO 80309 USA, on leave from the National Research Institute for Metals, Tsukuba, Japan.
Abstract
In this paper, we address the problem of designing flexible investment model where firm’s product demand is subject to variability. A flexible investment model is one that maintains maximize firm’s revenue despite fluctuations in the firm’s product demand levels. We extend existing procedures for design of investment by explicitly capturing the stochastic nature of firm’s product demand and the resulting variability in the price and (2) be determined simultaneously with the price of firm’s product output as a infers function of demand scenarios. Heuristic method is presented for generating flexible investment and determining allocations of spending under various demand conditions and other assumptions.
Keywords
- flexible investment
- firm’s revenue
- firm’s product demand
- firm’s product output
How to Cite
Agus Ristono, "Flexible Investment Design," International Journal of Innovation, Management and Technology, vol. 2, no. 2, pp. 171-174, 2011. https://doi.org/10.7763/IJIMT.2011.V2.126
Copyright & License
Copyright © 2011 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).