In this paper we study a type of production-inventory system in which the production and demand rates are modulated by a background state process modeled as a finite state Continuous Time Markov Chain (CTMC). When the production rate exceeds the demand rate, the inventory level increases, and when the demand rate exceeds the production rate, it decreases. When the inventory level reaches zero, ...

We consider the optimal control of an assemble-to-order (ATO) system with m components, a single end-product, and n customer classes. Demand from each class occurs continuously over time according to a Poisson process. Components are produced in separate production facilities, each with a finite production rate and exponentially distributed production times. Components can be stocked ahead of d...

This study proposes a new multi-item inventory model with hybrid cost parameters under a fuzzy-stochastic constraint and permissible delay in payment. The price and marketing expenditure dependent stochastic demand and the demand dependent the unit production cost are considered. Shortages are allowed and partially backordered. The main objective of this paper is to determine selling price, mar...

This paper focuses on an inventory model considering imperfect manufacturing and re-manufacturing system under single management. In manufacturing system, the items are produced from original raw materials but in re-manufacturing process, returned and defective items produced in previous manufacturing process are the raw materials. Both the production system shift from ‘ in control state ‘ to ‘...

This paper presents a simple algebraic approach for deriving the optimal lot size for economic production quantity (EPQ) model with rework process. Conventional methods for solving lot size problems are by using differential calculus on the long-run average production-inventory cost function with the need to prove optimality first. A few recent articles proposed the algebraic approach to the so...

This research is derived an integrated model of economic production quantity, inspection and preventive maintenance to incorporate rework, minimal repair and inspection time for an imperfect production system. Some proportions of non-conforming items are assumed scrap before the rework process start and others are reworked. The rework process is imperfect that is a proportion of the reworked it...

This paper considers a single-stage make-to-stock production–inventory system under random demand and yield, where defective units are reworked. We examine how to set cost-minimizing production/order quantities in such imperfect systems, which is challenging because yield implies an uncertain arrival time of outstanding the possibility them crossing each other pipeline. To determine order/produ...

We study the effects of different pricing strategies available to a continuous review inventory system with capacitated supply, which operates in a fluctuating environment. The system has a single server with exponential processing time. The inventory holding cost is nondecreasing and convex in the inventory level, the production cost is linear with no set-up cost. The potential customer demand...