Stability of a two-sided production and inventory model

Stability of a two-sided production and inventory model

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Article ID: iaor19911514
Country: Netherlands
Volume: 20
Issue: 1
Start Page Number: 65
End Page Number: 71
Publication Date: Jul 1990
Journal: Engineering Costs and Production Economics
Authors: ,
Keywords: inventory
Abstract:

The serial assembly model is considered. The problem is formulated to find sets of cost inputs for which solutions found by a recursion procedure remain valid. For simplicity a solution of this problem is provided for the two-stage problem. The paper shows that the stability region of cost inputs forms a convex cone in ℝ4 and consists of a system of linear inequalities. an algorithm is provided to compute the parameters of this cone and several cases of changing only two parameters are displayed graphically.

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