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An unreliable production system with fluctuating production and demand rates


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  • Esmail Mohebbi
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    This paper contains an analytical formulation for performance measurement of an unreliable production-storage operation where production and demand rates for a single item are subject to random fluctuations in the operating environment. These fluctuations are represented as transitions among the states of a continuous-time Markov chain and the demand process is characterised as a compound Poisson process. Assuming that the storage space is limited and the stockouts are lost, the proposed model yields exact expressions for a number of popular performance measures. The model is accompanied by some numerical results.

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    Bibliographic Info

    Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Applied Management Science.

    Volume (Year): 2 (2010)
    Issue (Month): 1 ()
    Pages: 20-35

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    Handle: RePEc:ids:injams:v:2:y:2010:i:1:p:20-35

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    Related research

    Keywords: inventories; production systems; limited capacity; random environments; Markov modulated processes; level crossings; fluctuating rates; production rates; demand rates; management science; random fluctuations; operating environments; continuous-time Markov chains; compound Poisson processes; storage space; stockouts.;


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