Article ID: | iaor19961958 |
Country: | United States |
Volume: | 43 |
Issue: | 4 |
Start Page Number: | 533 |
End Page Number: | 548 |
Publication Date: | Jun 1996 |
Journal: | Naval Research Logistics |
Authors: | Federgruen Awi, Katalan Ziv |
Keywords: | base stock systems |
The authors derive efficient and highly accurate approximations for the customer waiting-time distributions experienced in stochastic economic lot scheduling systems (SELSPs) that are governed by general base-stock policies under a cyclic or more general periodic item sequence. SELSPs involve settings where several items need to be produced in a common facility with limited capacity, under significant uncertainty regarding demands, unit production times, setup times, or combinations thereof. Under a base-stock policy one continues production of a given item until a specific target level is reached; the different items are produced in a given periodic sequence, possibly with idle times inserted between the completion of an item’s production batch and the setup of the next item. The authors also demonstrate how base-stock levels can be specified efficiently to guarantee any prescribed fill rate within a specific service window or distribution of service windows.