Stochastic Models for Make-to-stock Production-inventory Systems

Stochastic Models for Make-to-stock Production-inventory Systems

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This thesis considers a class of single-stage, single-product Make-to-Stock Production/Inventory Systems (MTS systems) with backorders, under various replenishment policies. It studies two types of stochastic models for such MTS systems: a discrete model and a stochastic fluid model (SFM). In a discrete model of an MTS system, order fulfillment from inventory following demand arrivals and inventory restocking following replenishment arrivals are modeled as discrete jumps in the inventory position level. In contrast, stocks in an SFM are treated as fluid, and demand fulfillment and inventory replenishment are carried out continuously, as stock flows into and out of inventory driven by flow rates. We then proceed to derive formulas for Infinitesimal Perturbation Analysis (IPA) derivatives in such MTS systems, and show them to be unbiased under appropriate conditions.... such systems over time, for example, with the objective of minimizing inventory on-hand without compromising customer service metrics. ... thesis derives IPA derivatives for MTS systems with backorders under any initial inventory state.

Title:Stochastic Models for Make-to-stock Production-inventory Systems
Author:Yihong Fan
Publisher:ProQuest - 2008


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