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Inventory systems with variable capacity

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  • Ilkyeong Moon
  • Byung-Hyun Ha
  • Jongchul Kim

Abstract

Many complex production/inventory systems are characterised by uncertain capacities due to imperfect facilities and processes. Uncertainty in supply capacity may consist of variable supplier capacities and random yields. We extend a model with variable supplier capacity in several directions and analyse the effects of variable supplier capacity. First, we investigate a lot-sizing problem in an EOQ model with variable supplier capacity and random yield. Second, we develop an EOQ model with storage or investment constraints when multiple items are considered. Third, we apply a distribution-free approach (DFA) to the (Q, r) model with variable supplier capacity. [Received: 11 November 2009; Revised: 21 June 2010; Accepted: 19 July 2010]

Suggested Citation

  • Ilkyeong Moon & Byung-Hyun Ha & Jongchul Kim, 2012. "Inventory systems with variable capacity," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 6(1), pages 68-86.
    • Handle: RePEc:ids:eujine:v:6:y:2012:i:1:p:68-86
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    References listed on IDEAS

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    1. Silver, Edward A. & Moon, Ilkyeong, 2001. "The multi-item single period problem with an initial stock of convertible units," European Journal of Operational Research, Elsevier, vol. 132(2), pages 466-477, July.
    2. Moon, Ilkyeong & Choi, Sangjin, 1997. "Distribution free procedures for make-to-order (MTO), make-in-advance (MIA), and composite policies," International Journal of Production Economics, Elsevier, vol. 48(1), pages 21-28, January.
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    5. Wang, Yunzeng & Gerchak, Yigal, 1996. "Continuous review inventory control when capacity is variable," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 381-388, August.
    6. Katrien Ramaekers & Gerrit K. Janssens, 2008. "On the choice of a demand distribution for inventory management models," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 2(4), pages 479-491.
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    8. Karuna Jain & Edward A. Silver, 1995. "The single period procurement problem where dedicated supplier capacity can be reserved," Naval Research Logistics (NRL), John Wiley & Sons, vol. 42(6), pages 915-934, September.
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    Cited by:

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