Abstract
We consider the dynamic scheduling of a two-part-type make-to-stock production system using the model of Wein [12]. Exogenous demand for each part type is met from finished goods inventory; unmet demand is backordered. The control policy determines which part type, if any, to produce at each moment; complete flexibility is assumed. The objective is to minimize average holding and backorder costs. For exponentially distributed interarrival and production times, necessary and sufficient conditions are found for a zero-inventory policy to be optimal. This result indicates the economic and production conditions under which a simple make-to-order control is optimal. Weaker results are given for the case of general production times.
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Veatch, M.H., De Véricourt, F. Zero-Inventory Conditions for a Two-Part-Type Make-to-Stock Production System. Queueing Systems 43, 251–266 (2003). https://doi.org/10.1023/A:1022846711722
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DOI: https://doi.org/10.1023/A:1022846711722