Transient Analysis of Production Inventory System with Different Rates of Production and Random Switching Time
Keywords:Product Inventory, Stochastic Process, Poisson distribution, Product Life Time, Switching Time, Backlogs, Level Dependent, Exponential Process.
This paper analyzes a single product stochastic inventory model with two different production rates where demand follows Poisson distribution and product has a finite lifetime which is level dependent. It is assumed that the system is reached on a predetermined level, the system is converted to ON mode from OFF mode with a significant switching time with an exponential
parameter. During switching time no demand will be served, the demand during switching time is lost forever. Here backlogs are
allowed and during backlogs, the Production rate is higher than that of normal production time. We assume that the product will
decay for the time under consideration. Some system characteristics are displayed with time variation.
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