Analysis of production/inventory systems with several production rates

David Perry, M. J.M. Posner

Research output: Contribution to journalArticlepeer-review


We consider four model classes with differing rules as to how to deal with the issue of backordering and shortages. For each model we assume N switchover levels and piecewise linear, state dependent and deterministic production rates between levels. We compute relevant functionals such as the stationary law of the inventory level, holding costs, switching and unsatisfied demand costs, and consider these with respect to two objective functions, namely, the long-run average cost, and the expected discounted cost.

Original languageEnglish
Pages (from-to)99-116
Number of pages18
JournalStochastic Models
Issue number1
StatePublished - 1990

Bibliographical note

Funding Information:
The financial support of the National Sciences and Engineering Research Council of


  • M/M/1
  • busy period
  • discounted cost
  • inventory
  • level crossings
  • long-run average cost
  • production
  • virtual waiting time

ASJC Scopus subject areas

  • Modeling and Simulation


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