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The Compensation Method Applied to a One-Product Production Inventory Problem

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dc.creator Graves, Stephen C.
dc.creator Keilson, Julian
dc.date 2004-05-28T19:35:50Z
dc.date 2004-05-28T19:35:50Z
dc.date 1978-07
dc.date.accessioned 2013-10-09T02:39:20Z
dc.date.available 2013-10-09T02:39:20Z
dc.date.issued 2013-10-09
dc.identifier http://hdl.handle.net/1721.1/5364
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/1721
dc.description This paper considers a one-product, one-machine production/inventory probelm. Demand requests for the product are governed by a Poisson process with demand size being an exponential random variable. The production facility may be in production or idle; while in production, the facility produces continuously at a constant rate. The objective is to minimize system costs consisting of setup costs, inventory holding costs, and backorder costs. Given a two-critical-number policy, the problem is analyzed as a constrained Markov process using the compensation method. The policy space may then be searched to find the optimal policy.
dc.description Research supported, in part, by the Office of Naval Research under Contract N00014-75-C-0556.
dc.format 1746 bytes
dc.format 1082337 bytes
dc.format application/pdf
dc.language en_US
dc.publisher Massachusetts Institute of Technology, Operations Research Center
dc.relation Operations Research Center Working Paper;OR 077-78
dc.title The Compensation Method Applied to a One-Product Production Inventory Problem
dc.type Working Paper


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