In this paper, the authors study a continuous-time make-to-stock (MTS) model for a manufacturer who needs to handle bulk demand with shortage expenditure including both fixed and variable costs. As stockout incurs additional fixed costs, the authors propose a self-reservation policy along with the production control: in the occurrence of stockout, the manufacturer can place an urgent order whose size is larger than the shortfall, and reserve some inventory for the future demand. The manufacturer can take this chance to quickly raise its inventory position and reduce the chance of stockout for future demand. The main contributions of this study are the investigation of the optimal production control and the introduction of the self-reservation policy to a manufacturer facing lot-size demand with a shortage cost including a fixed penalty. The authors model the production and reservation controls as a continuous-time Markov decision problem (CTMDP).
Recensione dell'articolo:(Huang, Boray; Wu, Andy - " Reduce shortage with self-reservation policy for a manufacturer paying both fixed and variable stockout expenditure. " - European J. Oper.Res. 262 (2017), no.3, 944-953.) MR3656877 MathSciNet ISSN 2167-5163
Leonardo Pasini
2018-01-01
Abstract
In this paper, the authors study a continuous-time make-to-stock (MTS) model for a manufacturer who needs to handle bulk demand with shortage expenditure including both fixed and variable costs. As stockout incurs additional fixed costs, the authors propose a self-reservation policy along with the production control: in the occurrence of stockout, the manufacturer can place an urgent order whose size is larger than the shortfall, and reserve some inventory for the future demand. The manufacturer can take this chance to quickly raise its inventory position and reduce the chance of stockout for future demand. The main contributions of this study are the investigation of the optimal production control and the introduction of the self-reservation policy to a manufacturer facing lot-size demand with a shortage cost including a fixed penalty. The authors model the production and reservation controls as a continuous-time Markov decision problem (CTMDP).I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
