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Optimal inventory control in a production flow system with failures
Journal article   Peer reviewed

Optimal inventory control in a production flow system with failures

Wallace J. Hopp, Niranjan Pati and Philip C. Jones
International journal of production research, Vol.27(8), pp.1367-1384
08/01/1989
DOI: 10.1080/00207548908942628

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Abstract

We consider a continuous flow production process subject to failures with an intermediate buffer. Under the practical restriction to the class of (B, b) inventory control policies, we give a procedure for determining the optimal buffer size, B, and control parameter, b. We give conditions under which these parameters can be expressed in closed form and show that otherwise they can be computed as the solution of a two-dimensional nonlinear system.

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