dc.contributor.author | Berling, Lars Peter | |
dc.contributor.author | Sonntag, Danja R. | |
dc.date.accessioned | 2022-12-01T12:25:34Z | |
dc.date.available | 2022-12-01T12:25:34Z | |
dc.date.created | 2022-04-24T14:23:46Z | |
dc.date.issued | 2022 | |
dc.identifier.citation | Production and operations management. 2022, . | en_US |
dc.identifier.issn | 1059-1478 | |
dc.identifier.uri | https://hdl.handle.net/11250/3035350 | |
dc.description.abstract | This paper considers a single-stage make-to-stock production–inventory system under random demand and random yield, where defective units are reworked. We examine how to set cost-minimizing production/order quantities in such imperfect systems, which is challenging because a random yield implies an uncertain arrival time of outstanding units and the possibility of them crossing each other in the pipeline. To determine the order/production quantity in each period, we extend the unit-tracking/decomposition approach, taking into account the possibility of order-crossing, which is new to the literature and relevant to other planning problems. The extended unit-tracking/decomposition approach allows us to determine the optimal base-stock level and to formulate the exact and an approximate expression of the per-period cost of a base-stock policy. The same approach is also used to develop a state-dependent ordering policy. The numerical study reveals that our state-dependent policy can reduce inventory-related costs compared to the base-stock policy by up to 6% and compared to an existing approach from the literature by up to 4.5%. From a managerial perspective, the most interesting finding is that a high mean production yield does not necessarily lead to lower expected inventory-related costs. This counterintuitive finding, which can be observed for the most commonly used yield model, is driven by an increased probability that all the units in a batch are either of good or unacceptable quality. | en_US |
dc.language.iso | eng | en_US |
dc.publisher | Wiley | en_US |
dc.rights | Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/4.0/deed.no | * |
dc.title | Inventory control in production–inventory systems with random yield and rework: The unit-tracking approach | en_US |
dc.title.alternative | Inventory control in production–inventory systems with random yield and rework: The unit-tracking approach | en_US |
dc.type | Peer reviewed | en_US |
dc.type | Journal article | en_US |
dc.description.version | publishedVersion | en_US |
dc.source.pagenumber | 0 | en_US |
dc.source.journal | Production and operations management | en_US |
dc.identifier.doi | 10.1111/poms.13706 | |
dc.identifier.cristin | 2018678 | |
cristin.ispublished | true | |
cristin.fulltext | original | |
cristin.qualitycode | 1 | |