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Optimal production run length for deteriorating production system with a two-state continuous-time Markovian processes under allowable shortages

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  • K-L Hou

    (National Defense University, Chungho)

Abstract

The paper studies optimal production run length for a deteriorating production system in which the shortages are allowed and the deterioration processes are characterized by a two-state continuous-time Markov chain. We show that there exists a unique optimal production run length to minimize the expected total relevant cost. In addition, bounds for the optimal production run length are provided to develop the solution procedure. Finally, a numerical example is given to illustrate the results and sensitivity analysis is also performed

Suggested Citation

  • K-L Hou, 2005. "Optimal production run length for deteriorating production system with a two-state continuous-time Markovian processes under allowable shortages," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(3), pages 346-350, March.
    • Handle: RePEc:pal:jorsoc:v:56:y:2005:i:3:d:10.1057_palgrave.jors.2601792
    DOI: 10.1057/palgrave.jors.2601792
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    References listed on IDEAS

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    1. Wang, Chih-Hsiung & Sheu, Shey-Heui, 2003. "Optimal lot sizing for products sold under free-repair warranty," European Journal of Operational Research, Elsevier, vol. 149(1), pages 131-141, August.
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    6. Hau L. Lee, 1992. "Lot Sizing to Reduce Capacity Utilization in a Production Process with Defective Items, Process Corrections, and Rework," Management Science, INFORMS, vol. 38(9), pages 1314-1328, September.
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    Cited by:

    1. Nita Shah & Monika Naik, 2019. "Coordinated production, ordering, shipment and pricing model for supplier-retailer inventory system under trade credit," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 29(2), pages 55-76.

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