This paper addresses the optimization of the continuous-flow model of a single-stage single-product manufacturing system with constant demand and transportation delay from the machine to the inventory. The machine is subject to either time-dependent or operation-dependent failures. The production is controlled by a hedging point policy. The goal is to determine the optimal hedging point, which ...

Variability, in general, has a deteriorating effect on the performance of stochastic inventory systems. In particular, previous results indicate that demand variability causes a performance degradation in terms of inventory related costs when production capacity is unlimited. In order to investigate the effects of demand variability in capacitated production settings, we analyse a make-to-stock...

This paper derives the optimal production-shipment policy for a vendor-buyer integrated system with imperfect quality and an amending product delivery plan using an algebraic method. It is assumed that the system may randomly produce certain portion of nonconforming products during each production run. Quality assurance in terms of inspection and rework has been given effect to the defective it...

With the increase in varieties products and increasing uncertainty about product demand, production preparation time is a significant factor addressing these issues. The trade-off between reduction of associated cost remains critical decision. this backdrop, study presents continuous review production-inventory model with variable time-dependent setup cost. demand during captured through min-ma...

Article history: Received October 2 2012 Received in revised format November 2 2012 Accepted November 2 2012 Available online 6 November 2012 This study develops an integrated production inventory model from the perspectives of vendor, supplier and buyer. The demand rate is time dependent for the vendor and supplier and buyer assumes the stock dependent demand rate. As per the demand, supplier ...

a r t i c l e i n f o Economic production quantity (EPQ) is the quantity of a product that should be manufactured in a single batch so as to minimize the total cost. In classical model EPQ only applies where the demand for a product and production rate is constant over the year. But in reality these parameters vary with time in different scenarios. In this paper we have considered a production ...

In this paper, we examine the effect of product variety on inventory costs in a production– inventory system with finite capacity where products are made to stock and share the same manufacturing facility. The facility incurs a setup time whenever it switches from producing one product type to another. The production facility has a finite production rate and stochastic production times. In orde...

Advance demand information, when used effectively, improves the performance of production/inventory systems. The extent of improvement however depends on certain factors. We investigate the influence of random supply lead times on a single-stage inventory system with advance demand information. It is found that the supply lead time variability diminishes the benefits of advance demand information.

We consider a make-to-stock supplier who operates a production facility with limited capacity. The supplier receives orders from customers belonging to several demand classes. Some of the customer classes share advance demand information with the supplier by announcing their orders ahead of their due date. However, this advance demand information is not perfect because the customer may decide t...