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| Tekijä: | Lida, T. |
| Otsikko: | A non-stationary periodic review production-inventory model with uncertain production capacity and uncertain demand |
| Lehti: | European Journal of Operational Research
2002 : AUG, VOL. 140:3, p. 670-683 |
| Asiasana: | PRODUCTION INVENTORY CONTROL PROBLEM SOLVING DEMAND ANALYSIS PRODUCTION CAPACITY |
| Kieli: | eng |
| Tiivistelmä: | In this paper the authors consider a nonstationary periodic review dynamic production-inventory model with uncertain production capacity and uncertain demand. The maximum production capacity varies stochastically. It is known that order up-to (or base- stock, critical number) policies are optimal for both finite horizon problems and infinite horizon problems. The authors obtain upper and lower bounds of the optimal order up-to levels, and show that for an infinite horizon problem the upper and the lower bounds of the optimal order up-to levels for the finite horizon counterparts converge as the planning horizons considered get longer. Furthermore, under mild conditions the differences between the upper and the lower bounds converge exponentially to zero. |
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