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A Capacity Constrained Production-Inventory System with Stochastic Demand and Production Times

På svenska

Author

  • Sven Axsäter

Summary, in English

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.

Publishing year

2010

Language

English

Pages

6203-6209

Publication/Series

International Journal of Production Research

Volume

48

Issue

20

Document type

Journal article

Publisher

Taylor & Francis

Topic

  • Transport Systems and Logistics

Keywords

  • stochastic
  • production-inventory management
  • capacity constrained

Status

Published

ISBN/ISSN/Other

  • ISSN: 0020-7543