PRODUCTION INVENTORY SYSTEM WITH RANDOM SUPPLY INTERRUPTIONS STATUE AND RANDOM LEAD TIMES

doi:10.1016/S0252-9602(11)60214-2

Abstract

Abstract:

This article analyzes a continuous-review inventory system with random supply interruptions and random lead time which may be interrupted by a random number of supplier's OFF periods. The inventory with constant demand rate is managed by a (r; q₁, q₂, …, q_m) policy and supplies from an unreliable sole supplier. By renewal theory and matrix Geometric method, the long-run average cost function is obtained and some important properties of the function are proved. Furthermore, performance of the inventory is derived.

Key words: Markov processes, inventory theory, supply chain management, PH-distribution, order-up-to policy

CLC Number:

90B05

HOU Yu-Mei, LIU Wen-Yuan, ZHANG Qiang, WU Feng-Qing. PRODUCTION INVENTORY SYSTEM WITH RANDOM SUPPLY INTERRUPTIONS STATUE AND RANDOM LEAD TIMES[J].Acta mathematica scientia,Series B, 2011, 31(1): 117-133.

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