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Production-inventory system with finite production rate, stock-dependent demand, and variable holding cost

Hesham K. Alfares — 2014

RAIRO - Operations Research - Recherche Opérationnelle

In general, traditional production-inventory systems are based on a number of simplifying – but somewhat unrealistic – assumptions, including constant demand rate, constant holding cost, and instantaneous order replenishment. These assumptions have been individually challenged in numerous variations of production-inventory models. Finite production rate models, such as economic production quantity (EPQ) systems consider gradual order replenishment. Stock-dependent demand models assume the demand...

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