Two-Level Lot Sizing Models for an Unreliable Production Facility: Case of Finite Horizon and Single Demand
In this paper we propose several models for production lot sizing for finite horizon and single quantity demands. We consider two-level inventory systems in which we take into account inventory costs for finished as well as unfinished goods. The production facility is subject to failures and repairs. The models are solved to optimality and the solution is either obtained in closed form or through very efficient algorithms.
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