This paper tests the robustness of analytical results on performance measures for a production-inventory system with an unreliable production facility. A basic model is considered which involves a single production machine with constant production rate which operates as long as the accumulated inventory is below a pre-set threshold, and is idle otherwise. The demand process follows a compound P...

Market segmentation has emerged as the primary means by which firms achieve optimal production policy. In this paper, we use market segmentation approach in multi-product inventory system with inventory-level-dependent demand. The objective is to make use of optimal control theory to solve the inventory-production problem and develop an optimal production policy that minimizes the total cost as...

Typical models of the production inventory systems assume that lot sizes of raw materials and final products are treated separately which leads to suboptimization production process. In this paper, a unified inventory model of an integrated production inventory system, where each of production, demand and deterioration rates are general functions of time, is considered. Shortage for the final p...

A typical discrete-time sequential decision problem involves a system whose state is assumed to evolve either deterministically or probabilistically over time-periods that are often called stages. This evolution is affected by the decisions a planner makes at the beginning of each stage after observing the system state. The decision maker’s goal then is to optimize some measure of system perfor...

This paper is concerned with the development of a production inventory model for both ameliorating and deteriorating items. Given an inventory goal level and a production goal rate set by the production facility, and given penalties for the inventory level and for the production rate to deviate from their respective targets, a system total cost objective function is derived. We seek the optimal...