A multi-item model of a production-inventory system incorporating deterioration, shortages and capacity/budge constraints is considered. An optimal control policy for the model is developed using linear quadratic (LQ) theory for the case of deterministic demands. The problem of controlling large-scale production-inventory facilities is also considered, and the interaction prediction method is u...

An order level inventory system for deteriorating items has been developed with demand rate as a ramp type function of time. The finite production rate is proportional to the demand rate and deterioration rate is time proportional. The unit production cost is inversely proportional to the demand rate. The model with no shortage case in inventory is first solved. The inventory shortage is discus...

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...

We consider a storage model that can be either interpreted as a certain queueing model with dependence between a service request and the subsequent interarrival time, or as a fluid production/inventory model with a two-state random environment. We establish a direct link between the workload distributions· of the queueing model and the production/inventory model, and we present a detailed analy...

This article studies the problem of sales-force compensation by considering the impact of sales-force behavior on a firm’s production and inventory system. The sales force’s compensation package affects how the salespeople are going to exert their effort, which in turn determines the sales pattern for the firm’s product and ultimately drives the performance of the firm’s production and inventor...

A continuous production control inventory model for deteriorating items with variable demand rate is developed. Demand rate is the linear function of time. In this paper we have done all work in the environment of permissible delay of payments. A number of structural properties of the inventory system are studied analytically. We have discussed the minimum total system cost under the condition ...