We address a stochastic single item production system in a make-to-stock environment with partial knowledge on future demand resulting from customers ordering in advance of their actual needs. The problem consists of determining the optimal size of a production lot to replenish inventory, so that delivery promises are met on time at the expense of minimal average costs. For this problem an opti...

Uncertainties brought about by fluctuations in demand and customers’ requirements have led many established companies to improve their manufacturing process by adopting the Kanban system. By doing so, they are able to manufacture and supply the right product, in the right quantity, at the right place and time. Implementation of the Kanban system resulted in reduction of inventory to minimum lev...

As an effective way of decreasing production cost, remanufacturing has attracted more and more attention from firms. However, it also brings many difficulties to firms, especial when firms remanufacture products which they produce. A primary problem for the case is how to acquire the used product sold by the firm itself. In this paper, we consider a return compensation policy for acquiring used...

Abstract: A simple dynamic model of a hybrid manufacturing / remanufacturing system is investigated. In particular we study an infinite horizon, continuous time, APIOBPCS (Automatic Pipeline Inventory and Order Based Production Control System) model. We specifically highlight the effect of remanufacturing lead-time and the return rate on the inventory variance and bullwhip produced by the order...

This paper is concerned with the optimal control of a production inventory system with time-varying deteriorating items. It is assumed that the deterioration rate follows the two parameters generalized exponential distribution. The continuous review policy is investigated. The optimality conditions are derived using Pontryagin maximum principle. The optimal total cost, the optimal inventory lev...

We consider the periodic-review, single-location, single-product, production/inventory control problem under non stationary demand and service-level constraints. The product is perishable and has a fixed shelf life. Costs comprise fixed ordering costs and inventory holding costs. For this inventory system we discuss a number of control policies that may be adopted. For one of these policies, we...

In the classical inventory it is assumed that all the costs associated with the inventory system remains constant over time. Since most decision makers think that the inflation does not have significant influence on the inventory policy and most of the inventory models developed so far does not include inflation and time value of money as parameters of the system. But due to large scale of infl...

totoday’s market place is increasingly dynamic and volatile. in this area supply network issues recently have attracted a lot of attention from industrial practitioners and academics worldwide. chaos theory is the study of complex, nonlinear, dynamic systems. for chaotic systems, a tiny change in conditions may result in an enormous change in system output, whereas substantial changes in condit...

a r t i c l e i n f o The optimal replenishment policy for an economic production quantity (EPQ)-based inventory model with nonconforming items and breakdown is presented. A real-life production system inevitably generates nonconforming items and has equipment breakdowns owing to process deterioration or other uncontrollable factors. This study addressed these issues in an EPQ-based system to o...

In this paper, we consider a joint dynamic pricing and production policy for stochastic inventory system with perishable products. The demand is dependent on the price level of on-hand inventory. Combined control, optimization model that maximizes total discounted profit built. Applying optimal control theory, formulate problem finding schedule as solving Hamilton-Jacobi-Bellman (HJB) equation....