Analysis of a deterministic demand production/inventory system under nonstationary supply uncertainty

Gullu, R
Onol, E
Erkip, N
In this article we investigate a periodic review inventory model under deterministic dynamic demand and supply unavailability. In a given period, supply is either available or completely unavailable with given probabilities. Supply unavailability probabilities are nonstationary over time. We show the optimality of an order-up-to level policy, and obtain a newsboy-like formula that determines the optimal order-up-to levels. Our formula would provide guidence as to the appropriate amount of inventory to stock in the face of uncertainties in the supply process.


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Citation Formats
R. Gullu, E. Onol, and N. Erkip, “Analysis of a deterministic demand production/inventory system under nonstationary supply uncertainty,” IIE TRANSACTIONS, pp. 703–709, 1997, Accessed: 00, 2020. [Online]. Available: