Disney, Stephen Michael ORCID: https://orcid.org/0000-0003-2505-9271 and Grubbström, R. W. 2004. Economic consequences of a production and inventory control policy. International Journal of Production Research 42 (17) , pp. 3419-3431. 10.1080/00207540410001727640 |
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Abstract
The economic performance of a generalized Order-Up-To policy is investigated in response to an Auto Regressive stochastic demand process. Focus is on the case where the physical production/distribution lead time is one period and where demand is forecasted with simple exponential smoothing. Two sets of convex piece-wise linear costs are considered. The first set is the traditional inventory holding and backlog costs. The second set of costs is piece-wise linear and increasing convex costs associated with the production order rate within and above a capacity constraint. Numerical investigations reveal that the classical Order-Up-To policy is no longer optimal when a broader range of costs is considered in the objective function.
Item Type: | Article |
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Date Type: | Publication |
Status: | Published |
Schools: | Business (Including Economics) Centre for Advanced Manufacturing Systems At Cardiff (CAMSAC) |
Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce H Social Sciences > HF Commerce > HF5601 Accounting |
Publisher: | Taylor & Francis |
ISSN: | 0020-7543 |
Date of First Compliant Deposit: | 30 March 2016 |
Last Modified: | 06 Nov 2023 20:10 |
URI: | https://orca.cardiff.ac.uk/id/eprint/42223 |
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