The Compensation Method Applied to a One-Product Production/Inventory Problem

DOI10.1287/MOOR.6.2.246zbMath0496.90030OpenAlexW2150515237MaRDI QIDQ3960443

Stephen C. Graves, Julian Keilson

Publication date: 1981

Published in: Mathematics of Operations Research (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1287/moor.6.2.246

zbMATH Keywords

compensation methodoptimal policysetup costsM/M/1 systembackorder costsinventory holding costsGreen's function methodsPoisson demand processtwo-critical-number policyclosed-form expression for system costconstrained Markov processexponential demand sizeminimization of total system costsone-product, one-machine, production/inventory problemserver backlog process

Mathematics Subject Classification ID

Production models (90B30) Inventory, storage, reservoirs (90B05) Applications of Markov renewal processes (reliability, queueing networks, etc.) (60K20) Applications of queueing theory (congestion, allocation, storage, traffic, etc.) (60K30)

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