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- W2090989354 abstract "We consider a multiclass make-to-stock system served by a single server with adjustable capacity (service rate). At any point in time, the decision-maker must determine the capacity level, make a production decision (i.e., whether to produce an item to stock or to satisfy a backorder), and make a rationing decision (i.e., whether to satisfy a new order from stock or place it on backorder). In this article we characterize the structure of optimal capacity adjustment, production, and stock rationing policy for both finite- and infinite-horizon problems. We show that an optimal policy is monotone in current inventory and backorder levels, and we characterize its properties. In a numerical study we compare the optimal policy with heuristic policies and show that the savings from using an optimal policy can be significant." @default.
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- W2090989354 date "2006-09-19" @default.
- W2090989354 modified "2023-09-25" @default.
- W2090989354 title "OPTIMAL CONTROL OF A MAKE-TO-STOCK SYSTEM WITH ADJUSTABLE SERVICE RATE" @default.
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- W2090989354 doi "https://doi.org/10.1017/s0269964806060384" @default.
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