Title: Inventory systems with variable capacity

Authors: Ilkyeong Moon; Byung-Hyun Ha; Jongchul Kim

Addresses: Department of Industrial Engineering, Pusan National University, Busan, 609-735, Korea. ' Department of Industrial Engineering, Pusan National University, Busan, 609-735, Korea. ' BS Process Innovation Group, LG Electronics, LG Twin Towers 20, Seoul, 150-721, Korea

Abstract: Many complex production/inventory systems are characterised by uncertain capacities due to imperfect facilities and processes. Uncertainty in supply capacity may consist of variable supplier capacities and random yields. We extend a model with variable supplier capacity in several directions and analyse the effects of variable supplier capacity. First, we investigate a lot-sizing problem in an EOQ model with variable supplier capacity and random yield. Second, we develop an EOQ model with storage or investment constraints when multiple items are considered. Third, we apply a distribution-free approach (DFA) to the (Q, r) model with variable supplier capacity. [Received: 11 November 2009; Revised: 21 June 2010; Accepted: 19 July 2010]

Keywords: variable capacity; economic order quantity; EOQ; (Q, r) policy; distribution-free approach; DFA; uncertainty; supplier capacity; random yield; storage constraints; investment constraints.

DOI: 10.1504/EJIE.2012.044811

European Journal of Industrial Engineering, 2012 Vol.6 No.1, pp.68 - 86

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 08 Jan 2012 *

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