Learn More
For a single product, single-stage capacitated production-inventory model with stochas-tic, periodic (cyclic) demand, we nd the optimal policy and characterize some of its properties. We study the nite-horizon, the discounted innnite-horizon and the innnite-horizon average cases. A simulation based optimization method is provided to compute the optimal(More)
This paper demonstrates optimal policies for capacitated serial multiechelon production/inventory systems. Extending the Clark and Scarf (1960) model to include installations with production capacity limits, we demonstrate that a modified echelon base-stock policy is optimal in a two-stage system when there is a smaller capacity at the downstream facility.(More)
In this paper, we address the optimal joint control of inventory and transshipment for a firm that produces in two locations and faces capacity uncertainty. Capacity uncertainty (e.g., due to downtime, quality problems, yield, etc.) is a common feature of many production systems but its effects have not been explored in the context of a firm that has(More)
We consider a two-stage serial supply chain with capacity limits, where each installation is operated by managers attempting to minimize their own costs. A multiple-period model is necessitated by the multiple stages, capacity limits, stochastic demand, and the explicit consideration of inventories. With appropriate salvage value functions, a Markov(More)