A (T,S) inventory/production system with limited production capacity and uncertain demands

Authors:
Masaaki Kijima;Tetsu Takimoto
Affiliations:
Faculty of Economics, Tokyo Metropolitan University, 1-1 Minami-Ohsawa, Hachiohji, Tokyo 192-0397, Japan;Information Systems Department, Olympus Optical Co. Ltd., 2-43-2 Hatagaya, Shibuya-ku, Tokyo 151-0072, Japan
Venue:
Operations Research Letters
Year:
1999

Citing 7
Cited 0

An inventory model with limited production capacity and uncertain demands. I. The average-cost criterion

Mathematics of Operations Research
An inventory model with limited production capacity and uncertain demands. II. The discounted-cost criterion

Mathematics of Operations Research
The effect of leadtime uncertainty in a simple stochastic inventory model

Management Science
Optimal Production and Inventory Policy for Multiple Products Under Resource Constraints

Management Science
Theory, Volume 1, Queueing Systems

Theory, Volume 1, Queueing Systems
Waiting time distribution in (T, S) inventory systems

Operations Research Letters
On the unutilized capacity of a production-storage system

Operations Research Letters

Quantified Score

Hi-index	0.00

Visualization

Abstract

We consider a single-item, single-location, (T,S) inventory/production model with uncertain demands in which a production capacity is limited per period. Our model is different from previous research in this area since we consider production decisions made before observing demand. A Markov chain model of the shortfall for inventory is constructed, which enables one to investigate not only the stationary situation but also the time-dependent behavior of system characteristics of interest in our model. In particular, the time-dependent distributions of the leadtime and the customer waiting time are expressed in terms of the transition probabilities of the Markov chain. The effects of limited production capacity and the order-up-to-level on performance characteristics are also discussed. Finally, a numerical example is given to illustrate our results.