This paper is concerned with joint determination of the optimal lot size and optimal number of shipments for an economic production quantity (EPQ) model with the reworking of random defective items produced. The classic EPQ model assumes a continuous issuing policy for satisfying product demand and perfect quality production for all items produced. However, in a real life vendor-buyer integrate...

To control a production-inventory system, a manager has to consider the variability in demand as well as variability in her production process. Both types of variability corrupt system performance and by alleviating either of them, the manager can improve the performance of the system. There has been a recent trend towards investing in better information systems to provide better advance demand...

We consider a class of single-stage, single-product Make-to-Stock productioninventory system (MTS system) with backorders. The system employs a continuous-review base-stock policy which strives to maintain a prescribed base-stock level of inventory. In a previous paper of Zhao and Melamed (Methodology and Computing in Applied Probability 8:191–222, 2006), the Infinitesimal Perturbation Analysis...

MRP Theory combines the use of Input-Output Analysis and Laplace transforms, enabling the development of a theoretical background for multi-level, multi-stage productioninventory systems together with their economic evaluation, in particular applying the Net Present Value principle (NPV). In this paper we concentrate our attention on the question of optimal lotsizing decisions within the MRP Th...

Presents a study on newsvendor bounds and features a heuristic for optimal policies in serial supply chains. Method of the study; Results and discussion. 19. On the Benefits of Inventory-Pooling in Production-Inventory Systems. Manufacturing & Service Operations Management, Jan2002, Vol. 4 Issue 1, p12, 5p By Kim, Jon-Seok; Benjaafar, Saif. Abstract: Presents a study which examined the benefits...