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An unreliable production system with fluctuating production and demand rates

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  • Esmail Mohebbi

Abstract

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.

Suggested Citation

  • Esmail Mohebbi, 2010. "An unreliable production system with fluctuating production and demand rates," International Journal of Applied Management Science, Inderscience Enterprises Ltd, vol. 2(1), pages 20-35.
    • Handle: RePEc:ids:injams:v:2:y:2010:i:1:p:20-35
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