A note on a production control model for a facility with limited storage capacity in a random environment

E. Mohebbi

European Journal of Operational Research, 2008, vol. 190, issue 2, 562-570

Abstract: This note presents an extension of our earlier paper on a production-inventory system with limited storage capacity in a multi-state random environment [i.e., E. Mohebbi, A production-inventory model with randomly changing environmental conditions, Eur. J Res. 174 (2006) 539-552]. More specifically, it assumes that the production rate as well as the occurrence rate and batch sizes of a compound Poisson demand stream are influenced by the state of a continuous-time homogeneous Markov chain representing the random environment. We present an adaptation of the system-point method of level crossings which yields the limiting distribution of inventory level (stock-on-hand) for a two-parameter production control policy when stockouts are lost.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0377-2217(07)00570-X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:190:y:2008:i:2:p:562-570

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().