Inventory levels to stop and restart a single machine producing one product

A.G. de Kok, H.C. Tijms, F.A. van der Duyn Schouten

    Research output: Contribution to JournalArticleAcademicpeer-review


    A central problem in production planning is the coordination of the production rate with the inventory level in order to find a suitable compromise between the inventory on hand, the frequency of changes in the production rate and customer service. This paper deals with an one product production/inventory problem with an intermittently operating production facility controlled by inventory levels to shut down and restart production. The demand process is a compound Poisson process and a service level constraint is imposed on the fraction of demand to be met directly from stock on hand. The paper presents a tractable two-moments approximation for the control rule for starting up and shutting down the production. © 1985.
    Original languageEnglish
    Pages (from-to)239-247
    JournalEuropean Journal of Operational Research
    Issue number2
    Publication statusPublished - 1985


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