Article ID: | iaor20061119 |
Country: | United States |
Volume: | 30 |
Issue: | 2 |
Start Page Number: | 354 |
End Page Number: | 368 |
Publication Date: | May 2005 |
Journal: | Mathematics of Operations Research |
Authors: | Perry David, Stadje Wolfgang, Zacks Shelemyahu |
Keywords: | queues: applications |
A production/inventory system is filled continuously at rate 1 and satisfies demands of independent identically distributed random sizes that arrive at Poisson times. For this system we consider two clearing policies. Under sporadic review, clearing takes place after a random time independent of the content process. Under continuous review, the system is cleared as soon as the inventory level reaches some pre-specified threshold. We derive explicit results for the associated expected discounted cost functionals under both types of clearing.