A Capacity Constrained Production-Inventory System with Stochastic Demand and Production Times
Research output: Contribution to journal › Article
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.
|Research areas and keywords||
Subject classification (UKÄ) – MANDATORY
|Journal||International Journal of Production Research|
|Publication status||Published - 2010|