Optimization of Production and Inventory Control

Sequential versus integrated optimization: Production, location, inventory control, and distribution

Application of queuing theory in production-inventory optimization

This paper presents a mathematical model for an inventory control system in which customers’ demands and suppliers’ service time are considered as stochastic parameters. The proposed problem is solved through queuing theory for a single item. In this case, transitional probabilities are calculated in steady state. Afterward, the model is extended to the case of multi-item inventory systems. The...

Simpufied Production-inventory Control Chart

This paper is concerned witl). "a problem in which a firm is engaged in manufacturing a number of types and sizes of goods at equal intervals, e. g. monthly, and the production is forced to fulfill the customer's demand immediately. In general the products are subject to considerable variations in demands. Let us assume that the amount demanded is uncertain but has a certain probability distrib...

Two-period production planning and inventory control

We study a single product two-period production/inventory model, in which the demands at each period are independent random variables. To optimally satisfy these random demands, quantities can be produced at the beginning of each period using slow or fast production mode, under capacity constraints. In addition to the usual decision variables for such models, we consider that a certain quantity...

System model of production inventory control

The primary consequence of just-in-time (JIT) production is reduction of inventory. The associated benefit is (a) improved cashflow due to less financial resource tied up in inventory, and (b) less storage space required hence more productive plant area. Coupled with lean production and total quality management (TQM), it may also be possible to (c) improve worker productivity, (d) improve produ...