Control of a production system with variable yield and random demand
type: Item
instance of: scholarly article
title: Control of a production system with variable yield and random demand
zbMATH Open document ID: 0664.90040
DOI: 10.1016/0305-0548(89)90003-8
author: M. Parlar
author: Yigal Gerchak
published in: Computers \& Operations Research
publication date: 1989-01-01T00:00:00Z
review text: This paper considers a dynamic production/inventory problem where the yield (or quantity supplied) it not exactly equal to quantity ordered. It is assumed that demand in each period is random with a given distribution. Assuming quadratic costs, order quantity for the unconstrained order quantity case is calculated using dynamic programming and is found as a linear function of the entering inventory. The more realistic case of constrained (nonnegative) order quantity is also analyzed using a heuristic. Two cases, (1) pay-for-input and (2) pay-for- output are separately discussed but found to be closely related. It is found that the heuristic proposed performs well in majority of the 8000 simulated test cases. A nonlinear regression model is also provided which can be used to estimate the performance of the heuristic for the given values of the six parameters of 50 period problems. Several numerical examples illustrate the results.
Mathematics Subject Classification ID: 90B30
Mathematics Subject Classification ID: 90B05
Mathematics Subject Classification ID: 90C39
Mathematics Subject Classification ID: 90C90
Mathematics Subject Classification ID: 65K05
zbMATH DE Number: 4087405
zbMATH Keywords: random demand
zbMATH Keywords: dynamic production/inventory problem
zbMATH Keywords: unconstrained order quantity
zbMATH Keywords: simulated test cases
zbMATH Keywords: nonlinear regression model
zbMATH Keywords: heuristic
MaRDI profile type: Publication
full work available at URL: 0305-0548(89)90003-8
OpenAlex ID: W2002421543
cites work: Q3244478
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description: scientific article; zbMATH DE number 4087405