Control of M/Cox-2/s make-to-stock systems
DOI:
https://doi.org/10.11121/ijocta.01.2020.00801Keywords:
Make-to-stock, Dynamic programming, Production control, Multi-server systems, Phase-type production timesAbstract
This study considers a make-to-stock production system with multiple identical parallel servers, fixed production start-up costs and lost sales. Processing times are assumed to be two-phase Coxian random variables that allows us to model the systems having rework or remanufacturing operations. First, the dynamic programming formulation is developed and the structure of the optimal production policy is characterized. Due to the highly dynamic nature of the optimal policy, as a second contribution we propose an easy-to-apply production policy. The proposed policy makes use of the dynamic state information and controlled by only two parameters. We test the performance of the proposed policy at several instances and reveal that it is near optimal. We also assess the value of dynamic state information in general by comparing the proposed policy with the well-known static inventory position based policy.
Downloads
References
Gavish, B., Graves, S.C., (1980), A one-product production/inventory problem under continuous review policy, Operations Research, 28(5), 1228-1236.
Heyman, D. P., (1968). Optimal operating policies for M/G/1 queuing systems, Operations Research, 16(2), 362-382.
Sobel, M. J., (1969), Optimal average-cost policy for a queue with start-up and shut-down costs, Operations Research, 17(1), 145-162.
Gavish, B., Graves, S.C., (1981), Production/Inventory Systems with a Stochastic Production Rate under a Continuous Review Policy, Computers & Operations Research, 8(3), 169-183.
Graves, S. C., Keilson, J., (1981), The compensation method applied to a one-product production/inventory problem. Mathematics of Operations Research, 6(2), 246-262.
Lee, H.S., Srinivasan, M.M., (1989), The Continuous Review (s, S) Policy for Production/Inventory Systems with Poisson Demands and Arbitrary Processing Times, Technical Report, 87-33.
Lee, H.S., Srinivasan, MM., (1991), Random Review Production/Inventory Systems with Compound Poisson Demands and Arbitrary Processing Times, Management Science, 37(7), 813-833.
Bulut, Ö., & Fadiloğlu, M. M., (2011), Production control and stock rationing for a make-to-stock system with parallel production channels, IIE Transactions, 43(6), 432-450.
Ha, A. Y., (1997a), Inventory rationing in a make-to-stock production system with several demand classes and lost sales. Management Science, 43(8), 1093-1103.
Ha, A.Y., (1997b), Stock rationing policy for a make-to-stock production system with two priority classes and backordering, Naval Research Logistics, 43, 458-472.
Ha, A. Y., (2000), Stock rationing in an M/Ek/1 make-to-stock queue, Management Science, 46(1) 77-87.
Gayon, J. P., De Vericourt, F., Karaesmen, F., (2009), Stock rationing in an M/Er /1 multi-class make-to-stock queue with backorders, IIE Transactions, 41(12), 1096-1109.
Rafiei, H., Rabbani, M., Vafa-Arani, H., & Bodaghi, G. (2017). Production-inventory analysis of single-station parallel machine make-to-stock/make-to-order system with random demands and lead times. International Journal of Management Science and Engineering Management, 12(1), 33-44.
Lippman, S., (1975), Applying a new device in the optimization of exponential queuing systems, Operations Research, 23, 687-710.
Downloads
Published
How to Cite
Issue
Section
License
Articles published in IJOCTA are made freely available online immediately upon publication, without subscription barriers to access. All articles published in this journal are licensed under the Creative Commons Attribution 4.0 International License (click here to read the full-text legal code). This broad license was developed to facilitate open access to, and free use of, original works of all types. Applying this standard license to your work will ensure your right to make your work freely and openly available.
Under the Creative Commons Attribution 4.0 International License, authors retain ownership of the copyright for their article, but authors allow anyone to download, reuse, reprint, modify, distribute, and/or copy articles in IJOCTA, so long as the original authors and source are credited.
The readers are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material
- for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
under the following terms:
- Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
This work is licensed under a Creative Commons Attribution 4.0 International License.
