Optimal Production Smoothing and Safety Inventory

A new approach is suggested to solve a production smoothing problem. The problem is divided essentially into two subproblems. First the derivation of the optimal smoothing policy is given for a model having a quadratic cost structure. The second step then takes into account the special features of the actually given nonquadratic cost functions. In the framework of a special model the applicability of this approach is discussed.

• 저널Management Science · 20(7) · 1122–1130
• 토픽Risk and Safety Analysis · Statistics, Probability and Uncertainty
• DOI10.1287/mnsc.20.7.1122
• 저자Christoph Schneeweiß