An (s, S) inventory system with service facilities has been investigated in this study. Demands arrive as a Poisson process with parameter λ (0) to an infinite capacity pool at any given time t. When the inventory is greater than the buffer size a customer will transfer to the buffer with rate...

We study the optimal policies of capacitated two-echelon serial inventory systems. For a system with smaller downstream capacity, we fully characterize the optimal policy using an intuitive backward induction. The key lies in two inductive assumptions: (a) if initially the stock level at the...

Problem definition: We consider a production system where a certain resource is used as the key raw material. The firm needs to decide the production quantity in each period facing stochastic demand and subject to the resource capacity constraint. The resource is self-renewable, and the growth...

Controlling the production in an industrial organisation is very complex. There are two different reasons for this complexity. On the one hand, complexity is due to the variety in range and in level of detail of the activities that playa role in such a control (think of manufacturing process...