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Stock‐rationing policy for a make‐to‐stock production system with two priority classes and backordering

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  • Albert Y. Ha

Abstract

This article considers the problem of production control and stock rationing in a make‐to‐stock production system with two priority customer classes and backordering. The problem is formulated as a queueing control model. With Poisson arrivals and exponential production times, we show that the optimal production control and stock‐rationing policies can be characterized by a single, monotone switching curve. © 1997 John Wiley & Sons, Inc. Naval Research Logistics 44: 457–472, 1997

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  • Albert Y. Ha, 1997. "Stock‐rationing policy for a make‐to‐stock production system with two priority classes and backordering," Naval Research Logistics (NRL), John Wiley & Sons, vol. 44(5), pages 457-472, August.
    • Handle: RePEc:wly:navres:v:44:y:1997:i:5:p:457-472
    DOI: 10.1002/(SICI)1520-6750(199708)44:53.0.CO;2-3
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    1. Ma, Weina & Hekimoğlu, Mustafa & Dekker, Rommert, 2023. "Admission control for a capacitated supply system with real-time replenishment information," International Journal of Production Economics, Elsevier, vol. 266(C).
    2. Francis de Véricourt & Yong-Pin Zhou, 2005. "Managing Response Time in a Call-Routing Problem with Service Failure," Operations Research, INFORMS, vol. 53(6), pages 968-981, December.
    3. Saif Benjaafar & Mohsen ElHafsi & Tingliang Huang, 2010. "Optimal control of a production‐inventory system with both backorders and lost sales," Naval Research Logistics (NRL), John Wiley & Sons, vol. 57(3), pages 252-265, April.
    4. Alfieri, Arianna & Pastore, Erica & Zotteri, Giulio, 2017. "Dynamic inventory rationing: How to allocate stock according to managerial priorities. An empirical study," International Journal of Production Economics, Elsevier, vol. 189(C), pages 14-29.
    5. K. Sapna Isotupa, 2015. "Cost analysis of an (S−1,S) inventory system with two demand classes and rationing," Annals of Operations Research, Springer, vol. 233(1), pages 411-421, October.
    6. Bing Lin & Shaoxiang Chen & Yi Feng & Jianjun Xu, 2018. "The Joint Stock and Capacity Rationings of a Make-To-Stock System with Flexible Demand," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(01), pages 1-27, February.
    7. Mohammad Najjartabar Bisheh & G. Reza Nasiri & Esmaeil Esmaeili & Hamid Davoudpour & Shing I. Chang, 2022. "A new supply chain distribution network design for two classes of customers using transfer recurrent neural network," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(5), pages 2604-2618, October.
    8. ElHafsi, Mohsen & Fang, Jianxin & Hamouda, Essia, 2021. "Optimal production and inventory control of multi-class mixed backorder and lost sales demand class models," European Journal of Operational Research, Elsevier, vol. 291(1), pages 147-161.
    9. Scott Carr & Izak Duenyas, 2000. "Optimal Admission Control and Sequencing in a Make-to-Stock/Make-to-Order Production System," Operations Research, INFORMS, vol. 48(5), pages 709-720, October.
    10. Hui Zhao & Jennifer K. Ryan & Vinayak Deshpande, 2008. "Optimal Dynamic Production and Inventory Transshipment Policies for a Two-Location Make-to-Stock System," Operations Research, INFORMS, vol. 56(2), pages 400-410, April.
    11. Quan-Lin Li & Yi-Meng Li & Jing-Yu Ma & Heng-Li Liu, 2023. "A complete algebraic solution to the optimal dynamic rationing policy in the stock-rationing queue with two demand classes," Journal of Combinatorial Optimization, Springer, vol. 45(3), pages 1-54, April.
    12. ElHafsi, Mohsen & Fang, Jianxin & Hamouda, Essia, 2020. "A novel decomposition-based method for solving general-product structure assemble-to-order systems," European Journal of Operational Research, Elsevier, vol. 286(1), pages 233-249.
    13. Agassi Melikov & Ramil Mirzayev & Janos Sztrik, 2023. "Double-Sources Queuing-Inventory Systems with Finite Waiting Room and Destructible Stocks," Mathematics, MDPI, vol. 11(1), pages 1-16, January.
    14. Robert A. Shumsky & Fuqiang Zhang, 2009. "Dynamic Capacity Management with Substitution," Operations Research, INFORMS, vol. 57(3), pages 671-684, June.
    15. Zeynep Turgay & Fikri Karaesmen & E. Örmeci, 2015. "A dynamic inventory rationing problem with uncertain demand and production rates," Annals of Operations Research, Springer, vol. 231(1), pages 207-228, August.
    16. Quante, R. & Fleischmann, M. & Meyr, H., 2009. "A Stochastic Dynamic Programming Approach to Revenue Management in a Make-to-Stock Production System," ERIM Report Series Research in Management ERS-2009-015-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    17. Richard Pibernik & Prashant Yadav, 2008. "Dynamic capacity reservation and due date quoting in a make‐to‐order system," Naval Research Logistics (NRL), John Wiley & Sons, vol. 55(7), pages 593-611, October.
    18. Yueshan Yu & Xin Chen & Fuqiang Zhang, 2015. "Dynamic Capacity Management with General Upgrading," Operations Research, INFORMS, vol. 63(6), pages 1372-1389, December.

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