Article ID: | iaor1998573 |
Country: | United States |
Volume: | 44 |
Issue: | 5 |
Start Page Number: | 457 |
End Page Number: | 472 |
Publication Date: | Aug 1997 |
Journal: | Naval Research Logistics |
Authors: | Ha Albert Y. |
Keywords: | make-to-stock |
This article considers the problem of production control and stock rationing in a make-to-stock production system with two priority customer classes and backordering. The problem is formulated as a queueing control model. With Poisson arrivals and exponential production times, we show that the optimal production control and stock-rationing policies can be characterized by a single, monotone switching curve.