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Sapna Isotupa

Optimal control of service for facilities holding inventory (ABSTRACT)


Berman, O., & Sapna Isotupa, K.P.

published: 2001 | Research publication | Refereed Journals - ODS

Berman, O., & Sapna Isotupa, K.P. (2001). "Optimal control of service for facilities holding inventory". Computers and Operations Research, 28 (5), 429-441.



ABSTRACT:  This paper addresses the problem of optimally controlling service rates for an inventory system of service facilities. It considers a finite capacity system with Poisson arrivals and exponentially distributed lead-times and service times. For given values of maximum inventory and reorder levels, it determines the service rates to be employed at each instant of time so that the long-run expected cost rate is minimized. The problem is modeled as a semi-Markov decision problem. The paper also establishes the existence of a stationary optimal policy and solves it by employing linear programming.

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revised Jan 7/05

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