Staff Publications

Staff Publications

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    'Staff publications' is the digital repository of Wageningen University & Research

    'Staff publications' contains references to publications authored by Wageningen University staff from 1976 onward.

    Publications authored by the staff of the Research Institutes are available from 1995 onwards.

    Full text documents are added when available. The database is updated daily and currently holds about 240,000 items, of which 72,000 in open access.

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Record number 503931
Title Optimal policies for Production-Clearing Systems under Continuous-Review
Author(s) Germs, R.; Foreest, Nicky D. van; Kilic, Onur A.
Source European Journal of Operational Research 255 (2016)3. - ISSN 0377-2217 - p. 747 - 757.
DOI https://doi.org/10.1016/j.ejor.2016.05.004
Department(s) Operations Research and Logistics
Publication type Refereed Article in a scientific journal
Publication year 2016
Abstract In this paper, we consider a production-clearing system with compound Poisson demand under continuous review. The production facility produces one type of item without stopping and at a constant rate, and stores the product into a buffer to meet future demand. To prevent high inventory levels, a clearing operation occasionally removes all or part of the inventory from the buffer. We prove that an (m, q)-policy, i.e., a policy that clears the buffer to level m as soon as the inventory hits a level q, minimizes the long run average holding and clearing cost. We also derive a numerically very efficient approach to compute the optimal parameters of the (m, q)-policy for models with backlogging and models with lost sales. With these numerical methods we show that tuning the clearing levels m and q in concert can lead to substantial cost savings.
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