Graduate School of Decision Science
National Defense Management College
National Defense University
150 Min An Road, Chung Ho, Taipei County 235, Taiwan, R.O.C.
This study focuses on the development of an estimation method of model parameters for centralized sequential investment problem (CSIP). CSIP was proposed by our previous studies [2, 3]. CSIP aims to find an investment sequence under taking into account the regional characteristics effect (RC effect), the following of which would enable all investment regions to achieve the target revenues within the shortest period of time. In formulating this model we take the same assumptions as our previous studies. For improving the precision of our previous model, we use the recursive formula to present the CSIP’s finial form. By introducing the possible scenarios that RC effect on investment sequence, a method based on Weibull distribution to estimate model parameters is proposed for solving CSIP. Also, some relative discussions to the implications of parameters are given to assist the practitioners to understand the CSIP.
Keywords: Capital centralization, Sequential investment, Regional characteristics effect, Weibull distribution
(*Contact: E-mail coc26@rs590.ndmc.edu.tw )
Cite this article as: Cheng-Chang Chang, "An Estimation Method of Parameters Based on Weibull Distribution to Centralized Sequential Investment Problem," Journal of the Chinese Institute of Industrial Engineers, 21, 504-515 (2004).