• xmlui.mirage2.page-structure.header.title
    • français
    • English
  • Help
  • Login
  • Language 
    • Français
    • English
View Item 
  •   BIRD Home
  • LAMSADE (UMR CNRS 7243)
  • LAMSADE : Publications
  • View Item
  •   BIRD Home
  • LAMSADE (UMR CNRS 7243)
  • LAMSADE : Publications
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Browse

BIRDResearch centres & CollectionsBy Issue DateAuthorsTitlesTypeThis CollectionBy Issue DateAuthorsTitlesType

My Account

LoginRegister

Statistics

Most Popular ItemsStatistics by CountryMost Popular Authors
Thumbnail

Budget Allocation for Permanent and Contingent Capacity under Stochastic Demand

Mincsovics, Gergely; Jeunet, Jully; Dellaert, Nico (2011), Budget Allocation for Permanent and Contingent Capacity under Stochastic Demand, International Journal of Production Economics, 131, 1, p. 128-138. http://dx.doi.org/10.1016/j.ijpe.2010.03.002

View/Open
658029.pdf (3.313Mb)
Type
Article accepté pour publication ou publié
Date
2011
Journal name
International Journal of Production Economics
Volume
131
Number
1
Publisher
Elsevier
Pages
128-138
Publication identifier
http://dx.doi.org/10.1016/j.ijpe.2010.03.002
Metadata
Show full item record
Author(s)
Mincsovics, Gergely
Jeunet, Jully
Dellaert, Nico
Abstract (EN)
We 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.
Subjects / Keywords
Stochastic; Capacity planning; Contingent workers; Budget allocation; Non-linear stochastic dynamic programming; Optimization
JEL
M12 - Personnel Management; Executives; Executive Compensation
M51 - Firm Employment Decisions; Promotions

Related items

Showing items related by title and author.

  • Thumbnail
    Budget Allocation for Permanent and Contingent Capacity under Stochastic Demand 
    Dellaert, Nico; Jeunet, Jully (2009) Communication / Conférence
  • Thumbnail
    Improving operational effectiveness of tactical master plans for emergency and elective patients under stochastic demand and capacitated resources 
    Jeunet, Jully; Vissers, Jan; Adan, Ivo; Bekkers, Jos; Dellaert, Nico (2011) Article accepté pour publication ou publié
  • Thumbnail
    Integrated capacity and inventory decisions 
    Dellaert, Nico; Flapper, S. D. P.; Jeunet, Jully; Tan, Tarkan (2012) Communication / Conférence
  • Thumbnail
    Assessing and controlling the impact of hospital capacity planning on the waiting time 
    Dellaert, Nico; Cayiroglu, Ezgi; Jeunet, Jully (2016) Article accepté pour publication ou publié
  • Thumbnail
    LINKING IMPROVED SURGERY TACTICAL PLANS TO ELECTIVE AND EMERGENCY PATIENT SERVICE: ANALYTICAL METHODS TO COMPUTE EXACT DISTRIBUTIONS FOR WAITING TIME AND RESOURCES UTILIZATION 
    Jeunet, Jully; Dellaert, Nico (2011) Communication / Conférence
Dauphine PSL Bibliothèque logo
Place du Maréchal de Lattre de Tassigny 75775 Paris Cedex 16
Phone: 01 44 05 40 94
Contact
Dauphine PSL logoEQUIS logoCreative Commons logo