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A note on a production control model for a facility with limited storage capacity in a random environment

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  • Mohebbi, E.

Abstract

This note presents an extension of our earlier paper on a production-inventory system with limited storage capacity in a multi-state random environment [i.e., E. Mohebbi, A production-inventory model with randomly changing environmental conditions, Eur. J Res. 174 (2006) 539-552]. More specifically, it assumes that the production rate as well as the occurrence rate and batch sizes of a compound Poisson demand stream are influenced by the state of a continuous-time homogeneous Markov chain representing the random environment. We present an adaptation of the system-point method of level crossings which yields the limiting distribution of inventory level (stock-on-hand) for a two-parameter production control policy when stockouts are lost.

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  • Mohebbi, E., 2008. "A note on a production control model for a facility with limited storage capacity in a random environment," European Journal of Operational Research, Elsevier, vol. 190(2), pages 562-570, October.
    • Handle: RePEc:eee:ejores:v:190:y:2008:i:2:p:562-570
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    1. Paul, Sanjoy Kumar & Sarker, Ruhul & Essam, Daryl, 2014. "Managing real-time demand fluctuation under a supplier–retailer coordinated system," International Journal of Production Economics, Elsevier, vol. 158(C), pages 231-243.

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