A. Brandolese et R. Cigolini, A new model for the strategic management of inventories subject to peaks in market demand, INT J PROD, 37(8), 1999, pp. 1859-1880
This research work is aimed at analysing a production system under dynamic
conditions. The focus is on determining the strategic inventory, defined as
the minimum initial inventory level needed to fulfil a sudden peak of fini
shed products demand, as well as the minimum allowed lapse of time between
two consecutive peaks to avoid stockout. A background of theoretical result
s and a comprehensive survey of the literature are provided, structured thr
ough a classification framework. Furthermore a new model has been developed
which explicitly considers production capacity limits. It actually represe
nts the only nonlinear model throughout the research body of knowledge in t
his field and, at the same time, it is characterised by an outstanding leve
l of simplicity, which allows theoretical results in a closed analytic form
, on behalf of the implementation in real-life manufacturing environments.