Abstract
This paper considers a simple model of a capacity constrained production-inventory system with Poisson demand. The system is controlled by an S policy. The production time for a unit is modelled as a gamma distributed stochastic variable. Using M/G/1 queuing theory it is very easy to evaluate holding and backorder costs and optimise the ordering policy. The suggested model may be useful when evaluating investments in production.
| Original language | English |
|---|---|
| Pages (from-to) | 6203-6209 |
| Journal | International Journal of Production Research |
| Volume | 48 |
| Issue number | 20 |
| DOIs | |
| Publication status | Published - 2010 |
Subject classification (UKÄ)
- Transport Systems and Logistics
Free keywords
- stochastic
- production-inventory management
- capacity constrained