Table of Contents Author Guidelines Submit a Manuscript
Discrete Dynamics in Nature and Society
Volume 2014, Article ID 301309, 12 pages
http://dx.doi.org/10.1155/2014/301309
Research Article

Optimal Control of a Make-to-Stock System with Outsourced Production and Price-Sensitive Demand

1Business School, Hohai University, No. 8 Fochen West Road, Jiangning District, Nanjing City 211100, China
2Department of Management Science, City University of Hong Kong, Kowloon, Hong Kong

Received 31 March 2014; Accepted 27 May 2014; Published 6 July 2014

Academic Editor: Xiaolin Xu

Copyright © 2014 Liuxin Chen et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Linked References

  1. M. E. Johnson, “Dual sourcing strategies: operational hedging and outsourcing to reducing risk in low-cost countries,” in Supply Chain Excellence in Emerging Economies, C. Y. Lee and H. L. Lee, Eds., Springer, 2005. View at Google Scholar
  2. B. Gavish and S. C. Graves, “A one-product production/inventory problem under continuous review policy,” Operations Research, vol. 28, no. 5, pp. 1228–1236, 1980. View at Google Scholar · View at Zentralblatt MATH · View at MathSciNet · View at Scopus
  3. M. J. Sobel, “The optimality of full-service policies,” Operations Research, vol. 30, no. 4, pp. 636–649, 1982. View at Google Scholar · View at Scopus
  4. Y.-S. Zheng and P. Zipkin, “A queueing model to analyze the value of centralized inventory information,” Operations Research, vol. 38, no. 2, pp. 296–307, 1990. View at Google Scholar · View at Scopus
  5. L. M. Wein, “Dynamic scheduling of a make-to-stock queue,” Operations Research, vol. 40, no. 4, pp. 724–735, 1996. View at Google Scholar
  6. M. H. Veatch and L. M. Wein, “Scheduling a make-to-stock queue: index policies and hedging points,” Operations Research, vol. 44, no. 4, pp. 634–647, 1996. View at Google Scholar · View at Scopus
  7. D. Bertsimas and I. C. Paschalidis, “Probabilistic service level guarantees in make-to-stock manufacturing systems,” Operations Research, vol. 49, no. 1, pp. 119–133, 2001. View at Google Scholar · View at Zentralblatt MATH · View at MathSciNet · View at Scopus
  8. A. Y. Ha, “Inventory rationing in a make-to-stock production system with several demand classes and lost sales,” Management Science, vol. 43, no. 8, pp. 1093–1103, 1997. View at Google Scholar · View at Scopus
  9. A. Y. Ha, “Optimal dynamic scheduling policy for a make-to-stock production system,” Operations Research, vol. 45, no. 1, pp. 42–53, 1997. View at Google Scholar · View at Scopus
  10. A. Y. Ha, “Stock rationing in an M/Ek/1 make-to-stock queue,” Management Science, vol. 46, no. 1, pp. 77–87, 2000. View at Google Scholar · View at Scopus
  11. R. Kapuscinski and S. R. Tayur, “Optimal policies and simulation based optimization for capacitated production inventory systems,” in Quantitative Models for Supply Chian Management, S. R. Tayur, R. Ganeshan, and M. Magazine, Eds., pp. 7–40, Kluwer Academic Publishers, Amsterdam, The Netherlands, 1999. View at Google Scholar
  12. Y. Feng and H. Yan, “Optimal production control in a discrete manufacturing system with unreliable machines and random demands,” IEEE Transactions on Automatic Control, vol. 45, no. 12, pp. 2280–2296, 2000. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at MathSciNet · View at Scopus
  13. Y. Feng and B. Xiao, “Optimal threshold control in discrete failure-prone manufacturing systems,” IEEE Transactions on Automatic Control, vol. 47, no. 7, pp. 1167–1174, 2002. View at Publisher · View at Google Scholar · View at MathSciNet · View at Scopus
  14. L. Li, “A stochastic theory of the firm,” Mathematics of Operations Research, vol. 13, no. 3, pp. 447–466, 1988. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at MathSciNet
  15. L. Chen, Y. Feng, and J. Ou, “Joint management of finished goods inventory and demand process for a make-to-stock product: a computational approach,” IEEE Transactions on Automatic Control, vol. 51, no. 2, pp. 258–273, 2006. View at Publisher · View at Google Scholar · View at MathSciNet · View at Scopus
  16. L. Chen, Y. Feng, and J. Ou, “Coordinating batch production and pricing of a make-to-stock product,” IEEE Transactions on Automatic Control, vol. 54, no. 7, pp. 1674–1680, 2009. View at Publisher · View at Google Scholar · View at MathSciNet · View at Scopus
  17. B. Ata and S. Shneorson, “Dynamic control of an M/M/1 service system with adjustable arrival and service rates,” Management Science, vol. 52, no. 11, pp. 1778–1791, 2006. View at Publisher · View at Google Scholar · View at Scopus
  18. S. Carr and I. Duenyas, “Optimal admission control and sequencing in a make-to-stock/make-to-order production system,” Operations Research, vol. 48, no. 5, pp. 709–720, 2000. View at Google Scholar · View at Scopus
  19. S. M. Ross, Applied Probabilistic Models with Optimization Applications, Holden-Day, San Francisco, Calif, USA, 1970. View at MathSciNet
  20. F. Y. Chen, Y. Feng, and J. Ou, “Management of inventory replenishment and available offerings for goods sold with optional value-added packages,” IIE Transactions, vol. 37, no. 5, pp. 397–406, 2005. View at Publisher · View at Google Scholar · View at Scopus