A Capacitated Production-Inventory Model with Periodic Demand

Roman Kapuściński · SRIDHAR R. TAYUR

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Supply Chain and Inventory Management Management and Optimization Techniques Optimization and Mathematical Programming

Abstract

For a single product, single-stage capacitated production-inventory model with stochastic, periodic (cyclic) demand, we find the optimal policy and characterize some of its properties. We study the finite-horizon, the discounted infinite-horizon and the infinite-horizon average cases. A simulation based optimization method is provided to compute the optimal parameters. Based on a numerical study, several insights into the model are also provided.

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References

1987Applied Probability and Queues 1993Inventory Control in a Fluctuating Demand Environment 1986An Inventory Model with Limited Production Capacity and Uncertain Demands II. The Discounted-Cost Criterion 1994A Periodic Review, Production Planning Model with Uncertain Capacity and Uncertain Demand—Optimality of Extended Myopic Policies 1960Dynamic Inventory Policy with Varying Stochastic Demands 1995Sensitivity Analysis for Base-Stock Levels in Multiechelon Production-Inventory Systems 1997Optimality of ( s , S ) Policies in Inventory Models with Markovian Demand 1986An Inventory Model with Limited Production Capacity and Uncertain Demands I. The Average-Cost Criterion

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