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The Compensation Method Applied to a One-Product Production Inventory Problem

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Show simple item record Graves, Stephen C. en_US Keilson, Julian en_US 2004-05-28T19:35:50Z 2004-05-28T19:35:50Z 1978-07 en_US
dc.description.abstract This paper considers a one-product, one-machine production/inventory probelm. Demand requests for the product are governed by a Poisson process with demand size being an exponential random variable. The production facility may be in production or idle; while in production, the facility produces continuously at a constant rate. The objective is to minimize system costs consisting of setup costs, inventory holding costs, and backorder costs. Given a two-critical-number policy, the problem is analyzed as a constrained Markov process using the compensation method. The policy space may then be searched to find the optimal policy. en_US
dc.description.sponsorship Research supported, in part, by the Office of Naval Research under Contract N00014-75-C-0556. en_US
dc.format.extent 1746 bytes
dc.format.extent 1082337 bytes
dc.format.mimetype application/pdf
dc.language.iso en_US en_US
dc.publisher Massachusetts Institute of Technology, Operations Research Center en_US
dc.relation.ispartofseries Operations Research Center Working Paper;OR 077-78 en_US
dc.title The Compensation Method Applied to a One-Product Production Inventory Problem en_US
dc.type Working Paper en_US

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