Analysis of an inventory system with advance emand information and supply uncertainty

Arıkan, Emel
In this study we address a periodic review capacitated inventory system with supply uncertainty where advance demand information is available. A stochastic dynamic programming formulation is applied with the objective of minimizing the expected inventory related costs over a finite horizon. Three different supply processes are assumed. Under the all-or-nothing type supply process and partially available supply process, the structure of optimal policy is proved to be a base stock policy and numerical examples are given to demonstrate the effects of system parameters. Under Binomially distributed supply process it is shown that a simple base stock policy is not optimal.


Analysis of an inventory system under supply uncertainty
Gullu, R; Onol, E; Erkip, N (Elsevier BV, 1999-03-20)
In this paper, we analyze a periodic review, single-item inventory model under supply uncertainty. The objective is to minimize expected holding and backorder costs over a finite planning horizon under the supply constraints. The uncertainty in supply is modeled using a three-point probability mass function. The supply is either completely available, partially available, or the supply is unavailable. Machine breakdowns, shortages in the capacity of the supplier, strikes, etc., are possible causes of uncerta...
A linear programming approach to quaity improvement project and product mix selection under inspection error and rework
Şarbak, Nedret; Köksal, Gülser; Department of Industrial Engineering (2006)
In this study, the effect of inspection error on the product mix and quality projects selection in a manufacturing environment where rework and inspection errors exist is examined. It is assumed that the products (items) for which rework is necessary are reprocessed at a separate work center and 100% inspection is performed for the products both after rework and processing operations. Markov chain approach is used to compute yield and rework rates. In addition, nominal-the-best type of a quality loss functi...
A new approach to generating non-permutation schedules for flowshops with missing operations
Tabalu, Metin; Şen, Tayyar; Department of Industrial Engineering (2006)
In this study, non-permutation flowshops with missing operations are considered. The primary performance criterion is the total cycle time (i.e. makespan) and the secondary criterion is the total flowtime. In order to obtain the schedule with minimum makespan and minimum total flowtime, non-permutation schedules are being generated instead of permutation ones by permitting multiple jobs bypassing stages where misisng operations occur. A heuristic algorithm has been developed in order to generate non-permuta...
Optimal pricing and production decisions in utilizing reusable containers
Atamer, Busra; Bakal, İsmail Serdar; Bayındır, Zeynep Pelin (2013-06-01)
In this study, we focus on pricing and production decisions in utilizing reusable containers with stochastic customer demand. We consider a manufacturer that sells a single product to the customers in reusable containers with two supply options: (i) brand-new containers and (ii) returned containers from customers. The return quantity depends on both customer demand and the acquisition fee determined by the manufacturer. The unit cost of production using brand-new containers is different than the unit cost o...
A Lagrangean relaxation based approach for the capacity allocation problem in flexible manufacturing systems
ÖZPEYNİRCİ, SELİN; Azizoğlu, Meral (Informa UK Limited, 2010-05-01)
This study considers the operation assignment and capacity allocation problem in flexible manufacturing systems. A set of operations is selected to be processed and assigned to the machines together with their required tools. The purchase or usage of the required tools incurs a cost. The machines have scarce time and tool magazine capacities. The objective is to maximize the total weight of the assigned operations minus the total tooling costs. We use Lagrangean relaxation approach to obtain upper and lower...
Citation Formats
E. Arıkan, “Analysis of an inventory system with advance emand information and supply uncertainty,” M.S. - Master of Science, Middle East Technical University, 2005.