A production-inventory model with randomly changing environmental [An article from: European Journal of Operational Research]

This digital document is a journal article from European Journal of Operational Research, published by Elsevier in 2006. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
We consider a limited-capacity production-inventory system with linear production rate and compound Poisson demand in which both production and demand processes are subject to independently and randomly changing environmental conditions. Assuming that these conditions are represented by two continuous-time homogeneous Markov chains and shortages are lost, we derive the limiting distribution of the inventory level and present some numerical results in terms of the ensuing performance measures.