Have A Limited Capacity And Boot/ordering Cost Stochastic Inventory System Research

One of the most fundamental results in inventory theory is the optimality of (s, S) policy for inventory systems with setup cost. This result is established based on a key assumption of infinite production/ordering capacity. This as-sumption is not satisfied in most applications, especially in production systems. Therefore, it is necessary to make some studies on the optimal policy for the inventory system with finite production/ordering capacity and setup cost. Based on the two assumptions above, we make some research on the inventory systems under stochastic conditions from three different contents.In Chapter1, we give the latest research development of inventory theory. A brief introduction is given about our work in this paper in the end.In Chapter2, we consider a continuous review production/inventory system with finite capacity and setup cost. Unsatisfied demand is lost. When the ma-chine is off, the inventory on hand can be sold at two different selling prices. While the machine is on, the inventory only can be sold at the low price. It is shown that the optimal control policy for this system is characterized by an (r, d, S) policy. We also develop efficient algorithms to compute the optimal control parameters.In Chapter3, we consider a continuous review production/inventory system with finite capacity and setup cost. Unsatisfied demand is backlogged. The production time for each item is random. We show that the optimal control policy for this system is characterized by an (r, S) policy when the holding/shortage cost rate is quasi-convex. We also develop efficient algorithms to compute the optimal control parameters.In Chapter4, we study a dynamic inventory and pricing optimization prob-lem in a periodic review inventory system with setup cost and finite ordering capacity. Unsatisfied demand is backlogged. We show that the optimal inven-tory control is characterized by an (s, s’,p) policy in four regions of the starting inventory level. In Chapter5, we make a brief conclusion and point out the direction of further study.