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Stock‐rationing policy for a make‐to‐stock production system with two priority classes and backordering
Author(s) -
Ha Albert Y.
Publication year - 1997
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/(sici)1520-6750(199708)44:5<457::aid-nav4>3.0.co;2-3
Subject(s) - rationing , stock (firearms) , monotone polygon , poisson distribution , operations research , economics , inventory control , lost sales , stock control , microeconomics , econometrics , computer science , business , mathematical economics , operations management , mathematics , statistics , engineering , mechanical engineering , health care , geometry , economic growth
This article considers the problem of production control and stock rationing in a make‐to‐stock production system with two priority customer classes and backordering. The problem is formulated as a queueing control model. With Poisson arrivals and exponential production times, we show that the optimal production control and stock‐rationing policies can be characterized by a single, monotone switching curve. © 1997 John Wiley & Sons, Inc. Naval Research Logistics 44 : 457–472, 1997