Liu, M, Feng, M and Wong, CY (2014) Flexible service policies for a Markov inventory system with two demand classes. International Journal of Production Economics, 151. 180 - 185. ISSN 0925-5273
Abstract
This paper explores flexible service policies for an (r, Q) Markov inventory system with two classes of customers, ordinary and prioritized customers. When the on-hand inventory drops to pre-determined safety level r, arrival ordinary customers receive service at probability p. Firstly, the inventory level state transitions equation is set up. The steady-state probability distribution and the system's performance measures which are used for the inventory control are derived. Next, a long-run average inventory cost function is established and a mixed integer optimization model is set up. And, an improved genetic algorithm for the optimum control policies is presented. Finally, the optimal inventory control polices and the sensitivities are investigated through numerical experiments.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Keywords: | Markov inventory system; Two demand classes; Inventory control; Genetic algorithm |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Management Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 20 Oct 2015 15:49 |
Last Modified: | 09 Apr 2016 15:27 |
Published Version: | http://dx.doi.org/10.1016/j.ijpe.2013.10.010 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.ijpe.2013.10.010 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:87684 |