Electronic Resource
Oxford, UK
:
Blackwell Publishing Ltd
Decision sciences
11 (1980), S. 0
ISSN:
1540-5915
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Economics
Notes:
This paper applies mathematical programming to cost-volume-profit (CVP) analysis under contribution margin uncertainty. Three CVP probabilistic chance-constraint models based on various safety-first criteria for decisions under uncertainty are presented and compared. It is shown that a break-even segment of the mean-standard deviation frontier is a set of optimal solutions for the proposed models. An operational parametric quadratic programming (QP) model is constructed, and the efficiency frontier is generated. The procedures for locating an optimal solution on the efficiency frontier are then presented. The recommended QP procedure offers both technical relief from the computational difficulties posed by the probabilistic constraints and a desired flexibility in generating and presenting the relevant information for decisions under uncertainty.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/j.1540-5915.1980.tb01166.x
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