Search results for: search in semantic networks.

Authors: Nidhi Gupta, Sanjoy Das, Khushal Singh

Abstract:

Mobile Ad hoc Network is a set of self-governing nodes which communicate through wireless links. Dynamic topology MANETs makes routing a challenging task. Various routing protocols are there, but due to various fundamental characteristic open medium, changing topology, distributed collaboration and constrained capability, these protocols are tend to various types of security attacks. Black hole is one among them. In this attack, malicious node represents itself as having the shortest path to the destination but that path not even exists. In this paper, we aim to develop a routing protocol for detection and prevention of black hole attack by modifying AODV routing protocol. This protocol is able to detect and prevent the black hole attack. Simulation is done using NS-2, which shows the improvement in network performance.

Keywords: Ad hoc, AODV, Back Bone, routing, Security.

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Authors: Malka N. Halgamuge, Toong-Khuan Chan, Priyan Mendis

Abstract:

Monitoring and automatic control of building environment is a crucial application of Wireless Sensor Network (WSN) in which maximizing network lifetime is a key challenge. Previous research into the performance of a network in a building environment has been concerned with radio propagation within a single floor. We investigate the link quality distribution to obtain full coverage of signal strength in a four-storey building environment, experimentally. Our results indicate that the transitional region is of particular concern in wireless sensor network since it accommodates high variance unreliable links. The transitional region in a multi-storey building is mainly due to the presence of reinforced concrete slabs at each storey and the fac┬©ade which obstructs the radio signal and introduces an additional absorption term to the path loss.

Keywords: Wireless sensor networks, radio propagation, building monitoring

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Authors: Luís Farinha, João J. Ferreira

Abstract:

Nowadays innovation represents a challenge crucial to remaining globally competitive. This study seeks to develop a conceptual model aimed at measuring the dynamic interactions of the triple/quadruple helix, balancing innovation and entrepreneurship initiatives as pillars of regional competitiveness – the Regional Helix Scoreboard (RHS). To this aim, different strands of literature are identified according to their focus on specific regional competitiveness governance mechanisms. We put forward an overview of the state-of-the-art of research and is duly assessed in order to develop and propose a framework of analysis that enables an integrated approach in the context of collaborative dynamics. We conclude by presenting the RHS for the study of regional competitiveness dynamics, which integrates and associates different backgrounds and identifies a number of key performance indicators for research challenges.

Keywords: Entrepreneurship, KPIs, innovation, performance measurement, regional competitiveness, regional helix scoreboard.

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Authors: Ibrahim Ozkan

Abstract:

In this study, a cross-layer design which combines adaptive modulation and coding (AMC) and hybrid automatic repeat request (HARQ) techniques for a cooperative wireless network is investigated analytically. Previous analyses of such systems in the literature are confined to the case where the fading channel is independent at each retransmission, which can be unrealistic unless the channel is varying very fast. On the other hand, temporal channel correlation can have a significant impact on the performance of HARQ systems. In this study, utilizing a Markov channel model which accounts for the temporal correlation, the performance of non-cooperative and cooperative networks are investigated in terms of packet loss rate and throughput metrics for Chase combining HARQ strategy.

Keywords: Cooperative network, adaptive modulation and coding, hybrid ARQ, correlated fading.

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Authors: Gang Uk Hwang

Abstract:

In communication networks where communication nodes are connected with finite capacity transmission links, the packet inter-arrival times are strongly correlated with the packet length and the link capacity (or the packet service time). Such correlation affects the system performance significantly, but little attention has been paid to this issue. In this paper, we propose a mathematical framework to study the impact of the correlation between the packet service times and the packet inter-arrival times on system performance. With our mathematical model, we analyze the system performance, e.g., the unfinished work of the system, and show that the correlation affects the system performance significantly. Some numerical examples are also provided.

Keywords: Performance analysis, Correlated queueing system, Unfinished work, PH-type distribution, Communicationsystem.

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Authors: Magdi M. Nabi, Ding-Li Yu

Abstract:

Control of a semi-batch polymerization reactor using an adaptive radial basis function (RBF) neural network method is investigated in this paper. A neural network inverse model is used to estimate the valve position of the reactor; this method can identify the controlled system with the RBF neural network identifier. The weights of the adaptive PID controller are timely adjusted based on the identification of the plant and self-learning capability of RBFNN. A PID controller is used in the feedback control to regulate the actual temperature by compensating the neural network inverse model output. Simulation results show that the proposed control has strong adaptability, robustness and satisfactory control performance and the nonlinear system is achieved.

Keywords: Chylla-Haase polymerization reactor, RBF neural networks, feed-forward and feedback control.

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Authors: Nestor A. Garcia Fragoso, Tetyana Baydyk, Ernst Kussul

Abstract:

This article contains information from our investigation in the field of voice recognition. For this purpose, we created a voice database that contains different phrases in two languages, English and Spanish, for men and women. As a classifier, the LIRA (Limited Receptive Area) grayscale neural classifier was selected. The LIRA grayscale neural classifier was developed for image recognition tasks and demonstrated good results. Therefore, we decided to develop a recognition system using this classifier for voice recognition. From a specific set of speakers, we can recognize the speaker’s voice. For this purpose, the system uses spectrograms of the voice signals as input to the system, extracts the characteristics and identifies the speaker. The results are described and analyzed in this article. The classifier can be used for speaker identification in security system or smart buildings for different types of intelligent devices.

Keywords: Extreme learning, LIRA neural classifier, speaker identification, voice recognition.

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Authors: M. Caramihai, Irina Severin

Abstract:

This paper deals with the design of an intelligent control structure for a bioprocess of Hansenula polymorpha yeast cultivation. The objective of the process control is to produce biomass in a desired physiological state. The work demonstrates that the designed Hybrid Control Techniques (HCT) are able to recognize specific evolution bioprocess trajectories using neural networks trained specifically for this purpose, in order to estimate the model parameters and to adjust the overall bioprocess evolution through an expert system and a fuzzy structure. The design of the control algorithm as well as its tuning through realistic simulations is presented. Taking into consideration the synergism of different paradigms like fuzzy logic, neural network, and symbolic artificial intelligence (AI), in this paper we present a real and fulfilled intelligent control architecture with application in bioprocess control.

Keywords: Bioprocess, intelligent control, neural nets, fuzzy structure, hybrid techniques.

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Authors: H. Aoudia, Y. Touati, E. H. Teguig, A. Ali Cherif

Abstract:

Conceiving and developing routing protocols for wireless sensor networks requires considerations on constraints such as network lifetime and energy consumption. In this paper, we propose a hybrid hierarchical routing protocol named HHRP combining both clustering mechanism and multipath optimization taking into account residual energy and RSSI measures. HHRP consists of classifying dynamically nodes into clusters where coordinators nodes with extra privileges are able to manipulate messages, aggregate data and ensure transmission between nodes according to TDMA and CDMA schedules. The reconfiguration of the network is carried out dynamically based on a threshold value which is associated with the number of nodes belonging to the smallest cluster. To show the effectiveness of the proposed approach HHRP, a comparative study with LEACH protocol is illustrated in simulations.

Keywords: Routing protocols, energy optimization, clustering.

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Authors: Elijah Acquah-Andoh

Abstract:

The UK has had its fair share of the shale gas revolutionary waves blowing across the global oil and gas industry at present. Although, its exploitation is widely agreed to have been delayed, shale gas was looked upon favorably by the UK Parliament when they recognized it as genuine energy source and granted licenses to industry to search and extract the resource. This, although a significant progress by industry, there yet remains another test the UK fracking resource must pass in order to render shale gas extraction feasible – it must be economically extractible and sustainably so. Developing unconventional resources is much more expensive and risky, and for shale gas wells, producing in commercial volumes is conditional upon drilling horizontal wells and hydraulic fracturing, techniques which increase CAPEX. Meanwhile, investment in shale gas development projects is sensitive to gas price and technical and geological risks. Using a Two-Factor Model, the economics of the Bowland shale wells were analyzed and the operational conditions under which fracking is profitable in the UK was characterized. We find that there is a great degree of flexibility about Opex spending; hence Opex does not pose much threat to the fracking industry in the UK. However, we discover Bowland shale gas wells fail to add value at gas price of $8/ Mmbtu. A minimum gas price of $12/Mmbtu at Opex of no more than $2/ Mcf and no more than $14.95M Capex are required to create value within the present petroleum tax regime, in the UK fracking industry.

Keywords: Capex, economical, investment, profitability, shale gas development, sustainable.

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Authors: Albertus G. Joubert, Roelien Goede

Abstract:

Benefits to the organisation are just as important as technical ability when it comes to software success. The challenge is to provide industry with professionals who understand this. In other words: How to teach computer engineering students to look beyond technology, and at the benefits of software to organizations? This paper reports on the conceptual design of a section of the computer networks module aimed to sensitize the students to the organisational context. Checkland focuses on different worldviews represented by various role players in the organisation. He developed the Soft Systems Methodology that guides purposeful action in organisations, while incorporating different worldviews in the modeling process. If we can sensitize students to these methods, they are likely to appreciate the wider context of application of system software. This paper will provide literature on these concepts as well as detail on how the students will be guided to adopt these concepts.

Keywords: Checkland, Soft Systems Methodology, Systems Approach, System Software.

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Authors: A. I. Alajtal, H. G. M. Edwards, M. A. Elbagermi

Abstract:

Raman spectroscopy is currently a part of the instrumentation suite of the ESA ExoMars mission for the remote detection of life signatures in the Martian surface and subsurface. Terrestrial analogues of Martian sites have been identified and the biogeological modifications incurred as a result of extremophilic activity have been studied. Analytical instrumentation protocols for the unequivocal detection of biomarkers in suitable geological matrices are critical for future unmanned explorations, including the forthcoming ESA ExoMars mission to search for life on Mars scheduled for 2018 and Raman spectroscopy is currently a part of the Pasteur instrumentation suite of this mission. Here, Raman spectroscopy using 785nm excitation was evaluated for determining various concentrations of beta-carotene in admixture with polyaromatic hydrocarbons and usnic acid have been investigated by Raman microspectrometry to determine the lowest levels detectable in simulation of their potential identification remotely in geobiological conditions in Martian scenarios. Information from this study will be important for the development of a miniaturized Raman instrument for targetting Martian sites where the biosignatures of relict or extant life could remain in the geological record.

Keywords: Raman spectroscopy, Mars-analog, Beta-carotene, PAHs.

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Authors: P. Karimi, A. H. Khedmati Bazkiaei

Abstract:

The main goal of this study is to test differential neural network as a controller of smart structure and is to enumerate its advantages and disadvantages in comparison with other controllers. In this study, the smart structure has been considered as a Euler Bernoulli cantilever beam and it has been tried that it be under control with the use of vibration neural network resulting from movement. Also, a linear observer has been considered as a reference controller and has been compared its results. The considered vibration charts and the controlled state have been recounted in the final part of this text. The obtained result show that neural observer has better performance in comparison to the implemented linear observer.

Keywords: Smart material, on-line differential artificial neural network, active control, finite element method.

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Authors: Juraj Camaj, Martin Kendra, Jaroslav Masek

Abstract:

The paper is focused to the evaluation railway tracks in the Slovakia by using Multi-Criteria method. Evaluation of railway tracks has important impacts for the assessment of investment in technical equipment. Evaluation of railway tracks also has an important impact for the allocation of marshalling yards. Marshalling yards are in transport model as centers for the operation assigned catchment area. This model is one of the effective ways to meet the development strategy of the European Community's railways. By applying this model in practice, a transport company can guarantee a higher quality of service and then expect an increase in performance. The model is also applicable to other rail networks. This model supplements a theoretical problem of train formation problem of new ways of looking at evaluation of factors affecting the organization of wagon flows.

Keywords: Railway track, multi-criteria methods, evaluation, transportation model.

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Authors: S. Sendhil Kumar, M. Senthil Kumar

Abstract:

Maintenance and design engineers have great concern for the functioning of rotating machineries due to the vibration phenomenon. Improper functioning in rotating machinery originates from the damage to rolling element bearings. The status of rolling element bearings require advanced technologies to monitor their health status efficiently and effectively. Avoiding vibration during machine running conditions is a complicated process. Vibration simulation should be carried out using suitable sensors/ transducers to recognize the level of damage on bearing during machine operating conditions. Various issues arising in rotating systems are interlinked with bearing faults. This paper presents an approach for fault diagnosis of bearings using neural networks and time/frequencydomain vibration analysis.

Keywords: Bearing vibration, Condition monitoring, Fault diagnosis, Frequency domain.

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Authors: Carlos Gonzalez

Abstract:

This paper describes a system to optimize the use of the internet by clients requiring downloading of videos at peak hours. The system consists of a web server belonging to a provider of video contents, a provider of internet communications and a software application running on a client’s computer. The client using the application software will communicate to the video provider a list of the client’s future video demands. The video provider calculates which videos are going to be more in demand for download in the immediate future, and proceeds to request the internet provider the most optimal hours to do the downloading. The times of the downloading will be sent to the application software, which will use the information of pre-established hours negotiated between the video provider and the internet provider to download those videos. The videos will be saved in a special protected section of the user’s hard disk, which will only be accessed by the application software in the client’s computer. When the client is ready to see a video, the application will search the list of current existent videos in the area of the hard disk; if it does exist, it will use this video directly without the need for internet access. We found that the best way to optimize the download traffic of videos is by negotiation between the internet communication provider and the video content provider.

Keywords: Internet optimization, video download, future demands, secure storage.

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Authors: Andrea Paltrinieri, Alberto Dreassi, Stefano Miani, Alex Sclip

Abstract:

The financial crises caused a collapse in prices of most asset classes, raising the attention on alternative investments such as sukuk, a smaller, fast growing but often misunderstood market. We study diversification benefits of sukuk, their correlation with other asset classes and the effects of their inclusion in investment portfolios of institutional and retail investors, through a comprehensive comparison of their risk/return profiles during and after the financial crisis. We find a beneficial performance adjusted for the specific volatility together with a lower correlation especially during the financial crisis. The distribution of sukuk returns is positively skewed and leptokurtic, with a risk/return profile similarly to high yield bonds. Overall, our results suggest that sukuk present diversification opportunities, a significant volatility-adjusted performance and lower correlations especially during the financial crisis. Our findings are relevant for a number of institutional investors. Long term investors, such as life insurers would benefit from sukuk’s protective features during financial crisis yet keeping return and growth opportunities, whereas banks would gain due to their role of placers, advisors, market makers or underwriters.

Keywords: Asset allocation, asset performance, sukuk, zero beta asset.

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Authors: Marios Poulos, Eirini Maliagani, Minas Paschopoulos, George Bokos

Abstract:

The purpose of my research proposal is to demonstrate that there is a relationship between EEG and endometrial cancer. The above relationship is based on an Aristotelian Syllogism; since it is known that the 14-3-3 protein is related to the electrical activity of the brain via control of the flow of Na+ and K+ ions and since it is also known that many types of cancer are associated with 14-3-3 protein, it is possible that there is a relationship between EEG and cancer. This research will be carried out by well-defined diagnostic indicators, obtained via the EEG, using signal processing procedures and pattern recognition tools such as neural networks in order to recognize the endometrial cancer type. The current research shall compare the findings from EEG and hysteroscopy performed on women of a wide age range. Moreover, this practice could be expanded to other types of cancer. The implementation of this methodology will be completed with the creation of an ontology. This ontology shall define the concepts existing in this research-s domain and the relationships between them. It will represent the types of relationships between hysteroscopy and EEG findings.

Keywords: Bioinformatics, Protein 14-3-3, EEG, Endometrial cancer, Ontology.

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Authors: G. Ahmadi, S.M. Shahrtash

Abstract:

A multiphase harmonic load flow algorithm is developed based on backward/forward sweep to examine the effects of various factors on the neutral to earth voltage (NEV), including unsymmetrical system configuration, load unbalance and harmonic injection. The proposed algorithm composes fundamental frequency and harmonic frequencies power flows. The algorithm and the associated models are tested on IEEE 13 bus system. The magnitude of NEV is investigated under various conditions of the number of grounding rods per feeder lengths, the grounding rods resistance and the grounding resistance of the in feeding source. Additionally, the harmonic injection of nonlinear loads has been considered and its influences on NEV under different conditions are shown.

Keywords: NEV, Distribution System, Multi-grounded, Backward/Forward Sweep, Harmonic Analysis

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Authors: Slimane Ouhmad, Abdellah Halimi

Abstract:

In this work, neural networks methods MLP type were applied to a database from an array of six sensors for the detection of three toxic gases. The choice of the number of hidden layers and the weight values are influential on the convergence of the learning algorithm. We proposed, in this article, a mathematical formula to determine the optimal number of hidden layers and good weight values based on the method of back propagation of errors. The results of this modeling have improved discrimination of these gases and optimized the computation time. The model presented here has proven to be an effective application for the fast identification of toxic gases.

Keywords: Back-propagation, Computing time, Fast identification, MLP neural network, Number of neurons in the hidden layer.

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Authors: A.K.Balirsingh, S.C.Swain, S. Panda

Abstract:

Recently, Genetic Algorithms (GA) and Differential Evolution (DE) algorithm technique have attracted considerable attention among various modern heuristic optimization techniques. Since the two approaches are supposed to find a solution to a given objective function but employ different strategies and computational effort, it is appropriate to compare their performance. This paper presents the application and performance comparison of DE and GA optimization techniques, for flexible ac transmission system (FACTS)-based controller design. The design objective is to enhance the power system stability. The design problem of the FACTS-based controller is formulated as an optimization problem and both the PSO and GA optimization techniques are employed to search for optimal controller parameters. The performance of both optimization techniques has been compared. Further, the optimized controllers are tested on a weekly connected power system subjected to different disturbances, and their performance is compared with the conventional power system stabilizer (CPSS). The eigenvalue analysis and non-linear simulation results are presented and compared to show the effectiveness of both the techniques in designing a FACTS-based controller, to enhance power system stability.

Keywords: Differential Evolution, Flexible AC TransmissionSystems (FACTS), Genetic Algorithm, Low Frequency Oscillations, Single-machine Infinite Bus Power System.

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Authors: P. Hajek, J. Stejskal

Abstract:

The aim of this paper is to analyze the ability to identify and acquire knowledge from external sources at the regional level in the Czech Republic. The results show that the most important sources of knowledge for innovative activities are sources within the businesses themselves, followed by customers and suppliers. Furthermore, the analysis of relationships between the objective of the innovative activity and the ability to identify and acquire knowledge implies that knowledge obtained from (1) customers aims at replacing outdated products and increasing product quality; (2) suppliers aims at increasing capacity and flexibility of production; and (3) competing businesses aims at growing market share and increasing the flexibility of production and services. Regions should therefore direct their support especially into development and strengthening of networks within the value chain.

Keywords: Knowledge, acquisition, innovative business, Czech republic, region.

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Authors: Banaja Mohanty, Prakash Kumar Hota

Abstract:

This paper presents a differential evolution algorithm to design a robust PI and PID controllers for Load Frequency Control (LFC) of nonlinear interconnected power systems considering the boiler dynamics, Governor Dead Band (GDB), Generation Rate Constraint (GRC). Differential evolution algorithm is employed to search for the optimal controller parameters. The proposed method easily copes of with nonlinear constraints. Further the proposed controller is simple, effective and can ensure the desirable overall system performance. The superiority of the proposed approach has been shown by comparing the results with published fuzzy logic controller for the same power systems. The comparison is done using various performance measures like overshoot, settling time and standard error criteria of frequency and tie-line power deviation following a 1% step load perturbation in hydro area. It is noticed that, the dynamic performance of proposed controller is better than fuzzy logic controller. Furthermore, it is also seen that the proposed system is robust and is not affected by change in the system parameters.

Keywords: Automatic Generation control (AGC), Generation Rate Constraint (GRC), Governor Dead Band (GDB), Differential Evolution (DE)

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Authors: Sara Ansari, Mohammad Hadi Sadreddini

Abstract:

The increasing importance of data stream arising in a wide range of advanced applications has led to the extensive study of mining frequent patterns. Mining data streams poses many new challenges amongst which are the one-scan nature, the unbounded memory requirement and the high arrival rate of data streams. In this paper, we propose a new approach for mining itemsets on data stream. Our approach SFIDS has been developed based on FIDS algorithm. The main attempts were to keep some advantages of the previous approach and resolve some of its drawbacks, and consequently to improve run time and memory consumption. Our approach has the following advantages: using a data structure similar to lattice for keeping frequent itemsets, separating regions from each other with deleting common nodes that results in a decrease in search space, memory consumption and run time; and Finally, considering CPU constraint, with increasing arrival rate of data that result in overloading system, SFIDS automatically detect this situation and discard some of unprocessing data. We guarantee that error of results is bounded to user pre-specified threshold, based on a probability technique. Final results show that SFIDS algorithm could attain about 50% run time improvement than FIDS approach.

Keywords: Data stream, frequent itemset, stream mining.

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Authors: Hyoup-Sang Yoon

Abstract:

Video-on-demand (VOD) is designed by using content delivery networks (CDN) to minimize the overall operational cost and to maximize scalability. Estimation of the viewing pattern (i.e., the relationship between the number of viewings and the ranking of VOD contents) plays an important role in minimizing the total operational cost and maximizing the performance of the VOD systems. In this paper, we have analyzed a large body of commercial VOD viewing data and found that the viewing rank distribution fits well with the parabolic fractal distribution. The weighted linear model fitting function is used to estimate the parameters (coefficients) of the parabolic fractal distribution. This paper presents an analytical basis for designing an optimal hierarchical VOD contents distribution system in terms of its cost and performance.

Keywords: VOD, CDN, parabolic fractal distribution, viewing rank, weighted linear model fitting

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Authors: Yu J. Chiu, Chia H. Yeh

Abstract:

Innovation is more important in any companies. However, it is not easy to measure the innovation performance correctly. Patent is one of measuring index nowadays. This paper wants to purpose an approach for valuing patents based on market reaction to patent infringement litigations. The interesting phenomenon is found from collection of patent infringement litigation events. That is if any patent litigation event occurs the stock value will follow changing. The plaintiffs- stock value raises some percentage. According to this interesting phenomenon, the relationship between patent litigation and stock value is tested and verified. And then, the stock value variation is used to deduce the infringed patents- value. The purpose of this study is providing another concept model to evaluate the infringed patents. This study can provide a decision assist system to help drafting patent litigation strategy and determine the technology value

Keywords: Patent valuation, infringement litigations, stock value, artificial neural networks.

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Authors: Humayun Murshed, Shibly Abdullah

Abstract:

The research conducted in early seventies apparently assumed the existence of a universal decision model for union negotiators and furthermore tended to regard financial information as a ‘neutral’ input into a rational decision making process. However, research in the eighties began to question the neutrality of financial information as an input in collective bargaining rather viewing it as a potentially effective means for controlling the labour force. Furthermore, this later research also started challenging the simplistic assumptions relating particularly to union objectives which have underpinned the earlier search for universal union decision models. Despite the above developments there seems to be a dearth of studies in developing countries concerning the use of financial information in collective bargaining. This paper seeks to begin to remedy this deficiency. Utilising a case study approach based on two enterprises, one in the public sector and the other a multinational, the universal decision model is rejected and it is argued that the decision whether or not to use financial information is a contingent one and such a contingency is largely defined by the context and environment in which both union and management negotiators work. An attempt is also made to identify the factors constraining as well as promoting the use of financial information in collective bargaining, these being regarded as unique to the organisations within which the case studies are conducted.

Keywords: Collective Bargaining, Developing Countries, Disclosures, Financial Information.

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Authors: Kesari Verma, Aniruddha S. Thoke, Pritam Singh

Abstract:

Automatic face detection is a complex problem in image processing. Many methods exist to solve this problem such as template matching, Fisher Linear Discriminate, Neural Networks, SVM, and MRC. Success has been achieved with each method to varying degrees and complexities. In proposed algorithm we used upright, frontal faces for single gray scale images with decent resolution and under good lighting condition. In the field of face recognition technique the single face is matched with single face from the training dataset. The author proposed a neural network based face detection algorithm from the photographs as well as if any test data appears it check from the online scanned training dataset. Experimental result shows that the algorithm detected up to 95% accuracy for any image.

Keywords: Face Detection, Face Recognition, NN Approach, PCA Algorithm.

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Authors: C. Pislaru, A. Shebani

Abstract:

This paper uses the radial basis function neural network (RBFNN) for system identification of nonlinear systems. Five nonlinear systems are used to examine the activity of RBFNN in system modeling of nonlinear systems; the five nonlinear systems are dual tank system, single tank system, DC motor system, and two academic models. The feed forward method is considered in this work for modelling the non-linear dynamic models, where the KMeans clustering algorithm used in this paper to select the centers of radial basis function network, because it is reliable, offers fast convergence and can handle large data sets. The least mean square method is used to adjust the weights to the output layer, and Euclidean distance method used to measure the width of the Gaussian function.

Keywords: System identification, Nonlinear system, Neural networks, RBF neural network.

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Authors: S. Hamid Mirmohammadi, Shahrazad Tamjidzad

Abstract:

This paper is concerned with the single-item continuous review inventory system in which demand is stochastic and discrete. The budget consumed for purchasing the ordered items is not restricted but it incurs extra cost when exceeding specific value. The unit purchasing price depends on the quantity ordered under the all-units discounts cost structure. In many actual systems, the budget as a resource which is occupied by the purchased items is limited and the system is able to confront the resource shortage by charging more costs. Thus, considering the resource shortage costs as a part of system costs, especially when the amount of resource occupied by the purchased item is influenced by quantity discounts, is well motivated by practical concerns. In this paper, an optimization problem is formulated for finding the optimal (r, Q) policy, when the system is influenced by the budget limitation and a discount pricing simultaneously. Properties of the cost function are investigated and then an algorithm based on a one-dimensional search procedure is proposed for finding an optimal (r, Q) policy which minimizes the expected system costs.

Keywords: (r, Q) policy, Stochastic demand, backorders, limited resource, quantity discounts.

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