We consider the production/inventory control for a recoverable system with stochastic demand and returns where stock is replenished by manufacturing new items or remanufacturing returned items. The optimal control policy found by solving a Markov decision process (MDP) for a given problem...

This article presents a straightforward production/inventory model that can capture the trade-offs among average inventory, production capacity and customer service levels in a semi-process industry setting. The model is based on well-known approximations from queuing literature, and it supports...

Production systems with scrapped and rework items have recently become an interesting subject of research. While most attempts have been focused on finding the optimal production quantity in a simple production system, little work appears on a joint production environment. In this research, two...

Nowadays, supply chain management (SCM) is a popular practice in manufacturing systems. The concept of SCM has forced members to find ways to cut costs and bring performance benefits to the firms. In the creation of long-term partnerships in the supply chain, the collaboration between supply...

An inventory system containing uncertainty, e.g., in demand, in costs, in lead time, or in supplied quantity or quality, needs a probability distribution of demand for reorder point models. In the literature on inventory control, many times reference is made to the Normal or Gamma distribution...

A stochastic version of the economic lot sizing problem with pricing is presented. The control variables of the stochastic problem are the production quantities and cycle lengths for each product. The recourse variables are the sales prices and the external purchase quantities in each production...

An inventory system containing uncertainty, e.g., in demand, in costs, in lead time, or in supplied quantity or quality, needs a probability distribution of demand for reorder point models. In the literature on inventory control, many times reference is made to the Normal or Gamma distribution...