OPTIMAL POLICY FOR A PRODUCTION-INVENTORY SYSTEM WITH SETUP COST AND AVERAGE COST CRITERION

被引:3
|
作者
Chao, Xiuli [1 ]
Xu, Yifan [2 ]
Yang, Baimei [2 ]
机构
[1] Univ Michigan, Dept Ind & Operat Engn, Ann Arbor, MI 48109 USA
[2] Fudan Univ, Sch Management, Shanghai 200433, Peoples R China
基金
美国国家科学基金会;
关键词
CAPACITY; MODEL;
D O I
10.1017/S0269964812000149
中图分类号
T [工业技术];
学科分类号
08 ;
摘要
One of the most fundamental results in inventory theory is the optimality of (s,S) policy for inventory systems with setup cost. This result is established under a key assumption of infinite ordering/production capacity. Several studies have shown that, when the ordering/production capacity is finite, the optimal policy for the inventory system with setup cost is very complicated and indeed, only partial characterization for the optimal policy is possible. In this paper, we consider a continuous review production/inventory system with finite capacity and setup cost. The demand follows a Poisson process and a demand that cannot be satisfied upon arrival is back-logged. We show that the optimal control policy has a very simple structure when the holding/shortage cost rate is quasi-convex. We also develop efficient algorithms to compute the optimal control parameters.
引用
收藏
页码:457 / 481
页数:25
相关论文
共 50 条
  • [1] Optimal Control of a Brownian Production/Inventory System with Average Cost Criterion
    Wu, Jingchen
    Chao, Xiuli
    [J]. MATHEMATICS OF OPERATIONS RESEARCH, 2014, 39 (01) : 163 - 189
  • [2] OPTIMAL-CONTROL OF A PRODUCTION-INVENTORY SYSTEM WITH STATE CONSTRAINTS AND A QUADRATIC COST CRITERION
    WARSCHAT, J
    [J]. RAIRO-RECHERCHE OPERATIONNELLE-OPERATIONS RESEARCH, 1985, 19 (03): : 275 - 292
  • [3] Optimal control of a dynamic production-inventory system with various cost criteria
    Golui, Subrata
    Pal, Chandan
    Manikandan, R.
    Sobhanan, Abhay
    [J]. ANNALS OF OPERATIONS RESEARCH, 2024, 337 (01) : 75 - 103
  • [4] Production Smoothing and Cost Performance in a Production-inventory System
    Synakova, Lucie
    [J]. JOURNAL OF COMPETITIVENESS, 2017, 9 (01) : 117 - 133
  • [5] Optimizing a production-inventory system under a cost target
    Li, Bo
    Ji, Qingkai
    Arreola-Risa, Antonio
    [J]. COMPUTERS & OPERATIONS RESEARCH, 2020, 123 (123)
  • [6] ON THE LONG-RUN AVERAGE COST MINIMIZATION PROBLEM OF THE STOCHASTIC PRODUCTION-INVENTORY MODELS
    Xie, Bowen
    Gao, Yijin
    [J]. JOURNAL OF INDUSTRIAL AND MANAGEMENT OPTIMIZATION, 2024, 20 (05) : 1823 - 1844
  • [7] The Optimal Control of Production-Inventory System
    Fu Yi
    Bian Baojun
    Zhang Jizhou
    [J]. 2013 25TH CHINESE CONTROL AND DECISION CONFERENCE (CCDC), 2013, : 4571 - 4576
  • [8] Service levels, system cost and stability of production-inventory control systems
    Bijulal, D.
    Venkateswaran, Jayendran
    Hemachandra, N.
    [J]. INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH, 2011, 49 (23) : 7085 - 7105
  • [9] Optimal Control Model of Production-Inventory System
    Prazak, Pavel
    [J]. MATHEMATICAL METHODS IN ECONOMICS (MME 2014), 2014, : 825 - 830
  • [10] OPTIMAL POLICY FOR TWO-STAGE BROWNIAN INVENTORY SYSTEMS UNDER THE LONG-RUN AVERAGE COST CRITERION
    Xu, Fen
    Yao, Dacheng
    Zhang, Hanqin
    [J]. NUMERICAL ALGEBRA CONTROL AND OPTIMIZATION, 2024,