Journal
EUROPEAN JOURNAL OF INDUSTRIAL ENGINEERING
Volume 6, Issue 1, Pages 68-86Publisher
INDERSCIENCE ENTERPRISES LTD
DOI: 10.1504/EJIE.2012.044811
Keywords
variable capacity; economic order quantity; EOQ; (Q, r) policy; distribution-free approach; DFA
Funding
- Korean Ministry of Education, Science and Technology (The Regional Core Research Program/Institute of Logistics Information Technology)
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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]
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