Inventory systems with variable capacity

Ilkyeong Moon, Byung-Hyun Ha and Jongchul Kim

European Journal of Industrial Engineering, 2012, vol. 6, issue 1, 68-86

Abstract: Many complex production/inventory systems are characterised by uncertain capacities due to imperfect facilities and processes. Uncertainty in supply capacity may consist of variable supplier capacities and random yields. We extend a model with variable supplier capacity in several directions and analyse the effects of variable supplier capacity. First, we investigate a lot-sizing problem in an EOQ model with variable supplier capacity and random yield. Second, we develop an EOQ model with storage or investment constraints when multiple items are considered. Third, we apply a distribution-free approach (DFA) to the (Q, r) model with variable supplier capacity. [Received: 11 November 2009; Revised: 21 June 2010; Accepted: 19 July 2010]

Keywords: variable capacity; economic order quantity; EOQ; (Q, r) policy; distribution-free approach; DFA; uncertainty; supplier capacity; random yield; storage constraints; investment constraints. (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (5)

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