Publication:
Production control of a pull system with production and demand uncertainty

dc.contributor.departmentDepartment of Business Administration
dc.contributor.kuauthorTan, Barış
dc.contributor.schoolcollegeinstituteCollege of Administrative Sciences and Economics
dc.date.accessioned2024-11-09T13:25:19Z
dc.date.issued2002
dc.description.abstractWe consider a continuous material-flow manufacturing system with an unreliable production system and a variable demand source which switches randomly between zero and a maximum level. The failure and repair times of the production system and the switching times of the demand source are assumed to be exponentially distributed random variables. The optimal production flow control policy that minimizes the expected average inventory carrying and backlog costs is characterized as a double-hedging policy. The optimal hedging levels are determined analytically by minimizing the closed-form expression of the cost function. We investigate two approximate single hedging policies. It is empirically shown that an approximate policy that uses a single hedging level which is the sum of a production uncertainty term and a demand uncertainty term gives accurate results for the expected average cost.
dc.description.fulltextYES
dc.description.indexedbyWOS
dc.description.indexedbyScopus
dc.description.issue5
dc.description.openaccessYES
dc.description.publisherscopeInternational
dc.description.sponsoredbyTubitakEuN/A
dc.description.sponsorshipN/A
dc.description.versionAuthor's final manuscript
dc.description.volume47
dc.identifier.doi10.1109/TAC.2002.1000272
dc.identifier.embargoNO
dc.identifier.filenameinventorynoIR01088
dc.identifier.issn0018-9286
dc.identifier.quartileQ1
dc.identifier.scopus2-s2.0-0036576750
dc.identifier.urihttps://hdl.handle.net/20.500.14288/3444
dc.identifier.wos175553000007
dc.keywordsHedging policies
dc.keywordsMarkov jump processes
dc.keywordsManufacturing models
dc.keywordsProduction flow control
dc.language.isoeng
dc.publisherInstitute of Electrical and Electronics Engineers (IEEE)
dc.relation.ispartofIEEE Transactions on Automatic Control
dc.relation.urihttp://cdm21054.contentdm.oclc.org/cdm/ref/collection/IR/id/1927
dc.subjectBusiness and economics
dc.subjectEconomics
dc.titleProduction control of a pull system with production and demand uncertainty
dc.typeJournal Article
dspace.entity.typePublication
local.contributor.kuauthorTan, Barış
local.publication.orgunit1College of Administrative Sciences and Economics
local.publication.orgunit2Department of Business Administration
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relation.isOrgUnitOfPublication.latestForDiscoveryca286af4-45fd-463c-a264-5b47d5caf520
relation.isParentOrgUnitOfPublication972aa199-81e2-499f-908e-6fa3deca434a
relation.isParentOrgUnitOfPublication.latestForDiscovery972aa199-81e2-499f-908e-6fa3deca434a

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