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- W2547599059 abstract "we consider a system consisting of a manufacturer serving several retailers. The manufacturer produces a standard product in a make-to-stock fashion in anticipation of orders emanating from n retailers. Orders from the retailers arrive in batches which sizes follow a discrete distribution. The production time is assumed to follow a k0- Erlang distribution. Order inter-arrival time for class l demand is assumed to follow a kl-Erlang distribution. Work-in- process as well as finished units incur a per unit per unit of time carrying cost. Unsatisfied units from an order from a particular retailer are assumed lost and incur a retailer-specific lost sale cost. The objective is to determine the optimal production and inventory allocation policies so as to minimize the expected total cost. We show that the optimal pro- duction policy is of the base-stock type with base-stock levels non-decreasing in the demand stages. We also show that the optimal inventory allocation policy among retailers is a rationing policy with rationing levels non-decreasing in the demand stages. We offer managerial insights such as the effect of variability on the operating cost and the benefits of such contracts as VMI or CPFR." @default.
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- W2547599059 date "2010-01-01" @default.
- W2547599059 modified "2023-09-26" @default.
- W2547599059 title "OPTIMAL CONTROL OF A PRODUCTION SYSTEM WITH INFORMATION ON THE PRODUCTION AND DEMAND STATUS: APPLICATION TO VENDOR MANAGED INVENTORY" @default.
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