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Optimal Production Smoothing and Safety Inventory

Author

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  • Christoph A. Schneeweiss

    (Freie Universitat Berlin, Germany)

Abstract

A new approach is suggested to solve a production smoothing problem. The problem is divided essentially into two subproblems. First the derivation of the optimal smoothing policy is given for a model having a quadratic cost structure. The second step then takes into account the special features of the actually given nonquadratic cost functions. In the framework of a special model the applicability of this approach is discussed.

Suggested Citation

  • Christoph A. Schneeweiss, 1974. "Optimal Production Smoothing and Safety Inventory," Management Science, INFORMS, vol. 20(7), pages 1122-1130, March.
    • Handle: RePEc:inm:ormnsc:v:20:y:1974:i:7:p:1122-1130
    DOI: 10.1287/mnsc.20.7.1122
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    Cited by:

    1. Wang, Xun & Disney, Stephen M., 2016. "The bullwhip effect: Progress, trends and directions," European Journal of Operational Research, Elsevier, vol. 250(3), pages 691-701.
    2. Disney, Stephen M. & Maltz, Arnold & Wang, Xun & Warburton, Roger D.H., 2016. "Inventory management for stochastic lead times with order crossovers," European Journal of Operational Research, Elsevier, vol. 248(2), pages 473-486.

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