Control of a production-inventory system with imperfect advance return information
Résumé
We consider a production-inventory system with product returns that are announced in advance by the customer who returns. The number of announcements, the actual number of returns, as well as the return and production leadtimes are random variables. Using a Markov decision formulation the optimal production policy, with respect to the discounted cost over an infinite horizon, is determined for lost sales and backorders situations with or without advance return information, giving insight in the potential value of this information.