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A Capacitated Production-Inventory Model with Periodic Demand

Author

Listed:
  • Roman Kapuściński

    (Carnegie Mellon University, Pittsburgh, Pennsylvania)

  • Sridhar Tayur

    (Carnegie Mellon University, Pittsburgh, Pennsylvania)

Abstract

For a single product, single-stage capacitated production-inventory model with stochastic, periodic (cyclic) demand, we find the optimal policy and characterize some of its properties. We study the finite-horizon, the discounted infinite-horizon and the infinite-horizon average cases. A simulation based optimization method is provided to compute the optimal parameters. Based on a numerical study, several insights into the model are also provided.

Suggested Citation

  • Roman Kapuściński & Sridhar Tayur, 1998. "A Capacitated Production-Inventory Model with Periodic Demand," Operations Research, INFORMS, vol. 46(6), pages 899-911, December.
    • Handle: RePEc:inm:oropre:v:46:y:1998:i:6:p:899-911
    DOI: 10.1287/opre.46.6.899
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    References listed on IDEAS

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    1. D. Beyer & S. P. Sethi, 1997. "Average Cost Optimality in Inventory Models with Markovian Demands," Journal of Optimization Theory and Applications, Springer, vol. 92(3), pages 497-526, March.
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