Inventory Rationing in a Make-to-Stock System with Batch Production and Lost Sales

2014 ◽  
Vol 23 (7) ◽  
pp. 1243-1257 ◽  
Author(s):  
Zhan Pang ◽  
Houcai Shen ◽  
T. C. E. Cheng
Keyword(s):  
Lost Sales ◽  
Batch Production ◽  
Inventory Rationing ◽  
Make To Stock

Coordinating Batch Production and Pricing of a Make-to-Stock Product

2009 ◽  
Vol 54 (7) ◽  
pp. 1674-1680 ◽  
Author(s):  
Liuxin Chen ◽  
Youyi Feng ◽  
Jihong Ou
Keyword(s):  
Batch Production ◽  
Make To Stock

scholarly journals Analysis of make-to-stock queues with general processing times and start-up and lost sales costs

2021 ◽  
Vol 12 (1) ◽  
pp. 8-19
Author(s):  
Sinem Özkan ◽  
Önder Bulut
Keyword(s):  
Numerical Study ◽  
Production Costs ◽  
Lost Sales ◽  
Critical Number ◽  
Line Production ◽  
Processing Times ◽  
Long Run ◽  
Average System ◽  
General Production ◽  
Make To Stock

We consider a make-to-stock environment with a single production unit that corresponds to a single machine or a line. Production and hence inventory are controlled by the two-critical-number policy. Production times are independent and identically distributed general random variables and demands are generated according to a stationary Poisson process. We model this production-inventory system as an M/G/1 make-to-stock queue. The main contribution of the study is to extend the control of make-to-stock literature by considering general production times, lost sales and fixed production costs at the same time. We characterize the long-run behaviour of the system and also propose a simple but very effective approximation to calculate the control parameters of the two-critical-number policy. An extensive numerical study exhibits the effects of the production time distribution and the system parameters on the policy control levels and average system cost.

Sign in / Sign up

Export Citation Format

Share Document