We consider a serial production system controlled by the base-stock policy, in which customer demands must be satisfied immediately or it will be considered lost. Since the exact analysis is impossible for the general system,we present a phase-type approximation for a base-stock controlled serial production system. The numerical results indicate that this approximation provides good estimates f...

We examine the effectiveness of the conventional (Q, r) model in managing production-inventory systems with finite capacity, stochastic demand, and stochastic order processing times. We show that, for systems with finite production capacity, order replenishment lead times are highly sensitive to loading and order quantity. Consequently, the choice of optimal order quantity and optimal reorder p...

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...

Abstract We consider a single-item production–inventory system under base stock policy for inventory control. model the as closed Gordon–Newell network. The population size of network is equal to level, which sum finished goods and work-in-process inventory. Each exogenous demand, follows Poisson process, releases production order new unit increases amount When there are no items in available, ...

We consider a single-stage inventory system supplying external demands and receiving stocks from an ample supply. Time is divided into periods of …xed length; a period can be a day or a week depending on the situation. In each period, demands arrive and are either …lled or backlogged. The system operates under a general periodic-review base-stock policy. Under this policy, the inventory positio...

we consider a system consisting of a manufacturer serving several retailers. The manufacturer produces a standard product in a make-to-stock fashion in anticipation of orders emanating from n retailers. Orders from the retailers arrive in batches which sizes follow a discrete distribution. The production time is assumed to follow a k0Erlang distribution. Order inter-arrival time for class l dem...

This paper explores qualitative effects of lead-time uncertainty in a basic continuous-time single-item inventory model with Poisson demand and stochastic lead times. The objective is to minimize the infinite-horizon expected total discounted cost. Order costs are linear, so a base-stock policy is optimal. Traditionally and intuitively, people believe that a (stochastically) longer lead time re...

W consider a multiproduct assemble-to-order (ATO) system, in which inventory is kept only at the component level and the finished products are assembled in response to customer demands. In addition to stochastic demand for finished products, the system experiences stochastic returns of subsets of components, which can then be used to satisfy subsequent demands. The system is managed over an inf...

We consider a single item assembled from two components. One of the components has a long leadtime, high holding cost and short review period as compared to the other one. We assume that net stocks are reviewed periodically, customer demand is stochastic and unsatisfied demand is back ordered. We analyze the system under two different policies and show how to determine the policy parameters min...

We consider a periodic-review single-location single-product inventory system with lost sales and positive replenishment lead times. It is well known that the optimal policy does not possess a simple structure. Motivated by recent results showing that base-stock policies perform well in these systems, we study the problem of finding the best base-stock policy in such a system. In contrast to th...