Analysis of a deterministic demand production/inventory system under nonstationary supply uncertainty

Gullu R., Onol E., Erkip N.

IIE TRANSACTIONS, cilt.29, ss.703-709, 1997 (SCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 29 Konu: 8
  • Basım Tarihi: 1997
  • Doi Numarası: 10.1080/07408179708966380
  • Sayfa Sayıları: ss.703-709


In this article we investigate a periodic review inventory model under deterministic dynamic demand and supply unavailability. In a given period, supply is either available or completely unavailable with given probabilities. Supply unavailability probabilities are nonstationary over time. We show the optimality of an order-up-to level policy, and obtain a newsboy-like formula that determines the optimal order-up-to levels. Our formula would provide guidence as to the appropriate amount of inventory to stock in the face of uncertainties in the supply process.