In this note, we consider a fluid flow, single part-type, single unreliable machine production system with a bounded backlog/inventory space. We prove that, as in the unbounded case, the problem of minimizing an infinite horizon average demand loss/backlog/surplus cost is solved by a hedging point policy. An implicit equation is given, whose structure easily allows to numerically evaluate the optimal safety stock. The effect of system parameters on the optimal safety stock is analyzed and some numerical examples illustrate the presented results.

Martinelli, F., Valigi, P. (2004). Hedging point policies remain optimal under limited backlog and inventory space. IEEE TRANSACTIONS ON AUTOMATIC CONTROL, 49(10), 1863-1869 [10.1109/TAC.2004.835592].

Hedging point policies remain optimal under limited backlog and inventory space

MARTINELLI, FRANCESCO;
2004

Abstract

In this note, we consider a fluid flow, single part-type, single unreliable machine production system with a bounded backlog/inventory space. We prove that, as in the unbounded case, the problem of minimizing an infinite horizon average demand loss/backlog/surplus cost is solved by a hedging point policy. An implicit equation is given, whose structure easily allows to numerically evaluate the optimal safety stock. The effect of system parameters on the optimal safety stock is analyzed and some numerical examples illustrate the presented results.
Pubblicato
Rilevanza internazionale
Articolo
Sì, ma tipo non specificato
Settore ING-INF/04 - Automatica
English
Con Impact Factor ISI
Boundary conditions; Control system analysis; Differential equations; Inventory control; Probability density function; Problem solving; Production control; Theorem proving; Bounded inventory; Hedging point policies; Machine production system; Optimal safety stock; Unreliable machine; Optimal control systems
Martinelli, F., Valigi, P. (2004). Hedging point policies remain optimal under limited backlog and inventory space. IEEE TRANSACTIONS ON AUTOMATIC CONTROL, 49(10), 1863-1869 [10.1109/TAC.2004.835592].
Martinelli, F; Valigi, P
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/30148
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