ANALYSIS AND CONTROL OF A SINGLE-ITEM PRODUCTION-INVENTORY SYSTEM WITH SHORTAGES AND BACK ORDERS

Authors
ALIYU MDS
Citation
Mds. Aliyu, ANALYSIS AND CONTROL OF A SINGLE-ITEM PRODUCTION-INVENTORY SYSTEM WITH SHORTAGES AND BACK ORDERS, International Journal of Systems Science, 29(8), 1998, pp. 889-897
Citations number
16
Categorie Soggetti
Computer Science Theory & Methods","Operatione Research & Management Science","Computer Science Theory & Methods","Operatione Research & Management Science","Robotics & Automatic Control
Journal title
International Journal of Systems Science → ACNP
ISSN journal
00207721
Volume
29
Issue
8
Year of publication
1998
Pages
889 - 897
Database
ISI
SICI code
0020-7721(1998)29:8<889:AACOAS>2.0.ZU;2-I
Abstract
An inventory model of a single-item production system incorporating de terioration and incorporating shortages and back orders is presented. The linear quadratic theory is used to develop an optimal policy which minimizes a quadratic cost criterion of production, inventory holding and shortages. The cases of both deterministic (not necessarily const ant) and stochastic demands are considered. In the stochastic case, th e demand is modeled as a Gaussian process with a certain mean and vari ance. Results of simulations are also presented and show very good agr eement with the theory developed.