Abstract
We present the production version of two EOQ-type models in
heavy traffic. The output is interpreted by random demand and
the input by a deterministic production plus random returns.
In the ON part of the cycle, the inventory content is a reflected
Brownian motion, and in the OFF part, it is a Brownian motion
with a negative drift. The ON/OFF periods generate an alternative
renewal process and the content-level process is a regenerative
process. Two control policies are considered. In one policy
that is natural under conditions of continuous review, production
is stopped when the content level in the ON period reaches a
predetermined level q. In the other policy, which resembles
periodic review, production is stopped when the ON time reaches a
predetermined time t0.
Publisher
Cambridge University Press (CUP)
Subject
Industrial and Manufacturing Engineering,Management Science and Operations Research,Statistics, Probability and Uncertainty,Statistics and Probability
Cited by
8 articles.
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