Inventory control policies for a polyester company

Author:

Blancas-Rivera Rubén1ORCID,Cruz-Suárez Hugo1ORCID,Tajonar-Sanabria Francisco Solano1,Velasco-Luna Fernando1ORCID

Affiliation:

1. Benemérita Universidad Autónoma de Puebla

Abstract

In this paper, we study an inventory control model, which is analyzed by means of a difference equation. This model is applied to study the stock of a polyester company. In this company, two types of polyester are manufactured, and it is considered a stochastic demand. In the paper, an optimal policy of production is determined, which minimizes the total expected discounted cost. The one-step cost function is integrated with the following components: production, storage and sale lost. The methodology consists on applied the dynamic programming approach and some results of convex analysis to determine a (R, Q)-optimal policy, where R and Q are positive numbers. R represents the maximum level of production and Q is the minimum stock. Finally, with a company database of monthly sales, we adjust a probability distribution and present a numerical implementation of the optimal. Furthermore, simulations to observe the asymptotic behavior of the stock are illustrated.

Publisher

ECORFAN

Subject

Organic Chemistry,Biochemistry

Reference13 articles.

1. [1] Ash, R. B., Robert, B., Doleans-Dade, C. A., & Catherine, A. (2000). Probability and measure theory. Academic Press.

2. [2] Bellman, R. (1966). Dynamic programming. Science, 153 (3731), 34-37.

3. [3] Blancas R. & Cruz, H. (2016). Caracterización de políticas óptimas (s,S) para una clase de procesos de decisión de Markov (Master’s thesis). Facultad de Ciencias Físico Matemáticas, Benemérita Universidad Autónoma de Puebla, Puebla, Puebla.

4. [4] Daduna, H., Knopov, P. S., & Tur, L. P. (1999). Optimal strategies for an inventory system with cost functions of general form. Cybernetics and Systems Analysis, 35(4), 602-618.

5. [5] Feinberg E., Lewis E. (2015). On the convergence of optimal actions for Markov decision processes and the optimality (s,S) policies for inventory control. http://arxiv.org/pdf/1507.05125v1.pdf

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