This paper develops a more general production-inventory model for a single-vendor–single-buyer integrated system. Unlike the hitherto existing production-inventory models for the vendor–buyer system, the present model neither requires the buyer’s unit holding cost greater than the vendor’s nor assumes the structure of shipment policy. Secondly, the model is extended to the situation with shorta...

the traditional economic production quantity (epq) model assumes that during the production process no imperfect item is produced. but in the real production system, due to imperfect production process or other factors, imperfect quality items may be produced. furthermore, it is well-known that the total production-inventory costs can be reduced by reworking the imperfect quality items produced...

We study the optimal production-inventory-outsourcing policy for a firm with Markovian in-house production capacity that faces independent stochastic demand and has the option to outsource. We find very simple optimal policy forms under fairly reasonable assumptions. In addition, when the capacity Markov process is stochastically monotone, the policy parameters decrease in the firm’s current ca...

The critical importance of integrating production, distribution, and inventory (PDI) operations has long been recognized by top management of many companies. Now. using (he laiest advances in Managemenl Science modeling and solution technology, an integruied computer-based PDI system has saved approximately $18 million dollars during its first three years of implemenlalion for a major national ...

A manufacturing facility consisting of two stations in tandem operates in a maketo-stock mode: after production, items are placed in a finished goods inventory that services an exogenous demand. Demand that cannot be met from inventory is backordered. Each station is modelled as a queue with controllable production rate, and the problem is to control these rates to minimize inventory holding an...

This paper considers the impact of inflation on the EPQ model for deteriorating items subject to random machine breakdowns and fixed maintenance period. The demand rate is assumed to be a function of inflation and the demand increase due to inflation. The objective is to determine the optimal production uptime that minimizes the present value of expected total costs per unit time consisting of ...

Despite availability of advanced decision aids, manufacturing managers should master basic control tasks within production systems. Still, there is substantial evidence that even highly educated and experienced practitioners mismanage even very simple production-inventory systems. We report an experimental study investigating strategies in a simple productioninventory control task. The study wa...

This paper surveys recent works on queuing approaches to a number of optimization problems in production systems, especially modem jobbing production systems (or multi-item small lot production systems) represented by flexible manufacturing systems (FMS). This paper outlines optimization problems concerning with such aspects of the system design and control as workioading, job selection, produc...