A (T,S) inventory/production system with limited production capacity and uncertain demands
Operations Research Letters
The machine breakdown paradox: How random shifts in the production rate may increase company profits
Computers and Industrial Engineering
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A one-product one-machine production/inventory problem in which the machine is subject to failure, is considered. The product is stored in an inventory of finite capacity. When the machine is operable, it produces at a rate @a greater than the demand rate @b, until the inventory becomes full and thereafter it produces at the demand rate. This stepping down of the rate of production results in the under-utilisation of the machine. The under-utilisation of the machine and the demand not met are analysed; special cases are considered. Cost analysis is also indicated.