Advanced Search
DSpace@MIT

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

Research and Teaching Output of the MIT Community

Show simple item record

dc.contributor.author Graves, Stephen C. en_US
dc.contributor.author Keilson, Julian en_US
dc.date.accessioned 2004-05-28T19:35:50Z
dc.date.available 2004-05-28T19:35:50Z
dc.date.issued 1978-07 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/5364
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


Files in this item

Name Size Format Description
OR-077-78.pdf 1.032Mb PDF

This item appears in the following Collection(s)

Show simple item record

MIT-Mirage