Periodic review production models with variable yield and uncertain demand

Yigal Gerchak, Raymond G. Vickson, Mahmut Parlar

Research output: Contribution to journalArticlepeer-review

138 Scopus citations

Abstract

A periodic-review production model with variable yield (uncertain supply) and uncertain demand is formulated and investigated. First, we provide a complete analysis of the final (single) period problem. The order point turns out to be unaffected by the yield distribution, but the expected yield corresponding to optimal lot size generally does not equal the difference between the order point and initial stock. We then explore properties of the two- period problem, the solution of which is generally non-myopic. Finally, the solution structure of the n-period problem is reported.

Original languageEnglish
Pages (from-to)144-150
Number of pages7
JournalIIE Transactions (Institute of Industrial Engineers)
Volume20
Issue number2
DOIs
StatePublished - 1 Jun 1988
Externally publishedYes

Funding

FundersFunder number
Natural Sciences and Engineering Research Council of CanadaA9304, A4608, M698

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