Tactical inventory and backorder decisions for systems with predictable production yield

Download

index.pdf

Date

2010

Author

Mart, Turgut

Metadata

Show full item record

Item Usage Stats

220
views

129
downloads

We consider a manufacturing system with stochastic demand and predictable production yield. The manufacturer has predetermined prices and limited production capacity in each period. The producer also has the option to save some inventory for future periods even if there is demand in the current period. The demand that is not met is lost or may be backordered for only one period. Our objective is to maximize the expected profit by choosing optimal production, save and backorder quantities in each period. We formulate this problem as a Markov Decision Process where the state of the system is represented by the net inventory and the efficiency parameter. We show that a modified (Y, S, B) policy is optimal in each period. At the end, we have some computational analysis to examine the effects of yield on the optimal decisions.

Subject Keywords

Dynamic programming., Industrial engineering.

URI

http://etd.lib.metu.edu.tr/upload/12611861/index.pdf
https://hdl.handle.net/11511/19625

Collections

Graduate School of Natural and Applied Sciences, Thesis

Suggestions

OpenMETU
Core

Tactical inventory and backorder decisions for systems with predictable production yield MART, Turgut; Duran, Serhan; Bakal, İsmail Serdar (2013-06-01) We consider a manufacturing system with stochastic demand and predictable production yield. The manufacturer has predetermined prices and limited production capacity in each period. The manufacturer also has the option to save some inventory for future periods even if there is demand in the current period. The demand that is not met is lost or may be backordered for only one period. Our objective is to maximize the expected profit by choosing optimal produce-up-to level ((Y) over bar*(t)), save (S*(t)) and ...
Optimal pricing and production decisions in reusable container systems Atamer, Büşra; Bakal, İsmail Serdar; Department of Industrial Engineering (2010) In this study, we focus on pricing and production decisions in reusable container systems with stochastic demand. We consider a producer that sells a single product to the customers in reusable containers with two supply options: (i) brand-new containers, (ii) returned containers from customers. Customers purchasing the products may return the containers to the producer to receive a deposit price. The return quantity depends on both customer demand and the deposit price determined by the producer. Hence, th...
Nonlinear and dynamic programming models for an inventory problem in a partially observable environment Darendeliler, Alp; Serin, Yaşar Yasemin; Department of Industrial Engineering (2016) In this study, a single-item periodic-review inventory system is considered in a partially observable environment with finite capacity, random yield and Markov modulated demand and supply processes for finite-horizon. The exact state of the real process, which determines the distribution of the demand and supply, is unobservable so the decisions must be made according to the limited observations called observed process. Partially Observable Markov Decision Process is used to model this problem. As an altern...
Monitoring high quality processes: a study of estimation errors on the time-between-events exponentially weighted moving average schemes Özsan, Güney; Köksal, Gülser; Department of Industrial Engineering (2008) In some production environments the defect rates are considerably low such that measurement of fraction of nonconforming items reaches parts per million level. In such environments, monitoring the number of conforming items between consecutive nonconforming items, namely the time between events (TBE) is often suggested. However, in the design of control charts for TBE monitoring a common practice is the assumptions of known process parameters. Nevertheless, in many applications the true values of the proces...
Trade-off models in sustainable system engineering Özaslan, Mustafa Onur; Azizoğlu, Meral; Department of Industrial Engineering (2009) Prior to concerns of sustainability, almost all industrial engineering models tried to minimize cost or maximize profit. Sustainability awareness has recently forced the decision makers to also take into consideration such aspects as clean water use, or carbon dioxide emissions. In an effort to incorporate more aspects of sustainability in optimizing production efforts, we present a network model to handle trade-offs among dissimilar sustainability criteria. Since typically there are alternative choices for...

Citation Formats

T. Mart, “Tactical inventory and backorder decisions for systems with predictable production yield,” M.S. - Master of Science, Middle East Technical University, 2010.