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of the European Council for Modelling and Simulation



Analysis Of A Production-Inventory System With Unreliable Production Facility


Katrien Ramaekers, Gerrit K. Janssens

Published in:


ECMS 2007 Proceedings

Edited by: Ivan Zelinka, Zuzana Oplatkova, Alessandra Orsoni


ISBN: 978-0-9553018-2-7

Doi: 10.7148/2007


21st European Conference on Modelling and Simulation,

Prague, June 4-6, 2007


Citation format:

Ramaekers, K., & Janssens, G. K. (2007). Analysis Of A Production-Inventory System With Unreliable Production Facility. ECMS 2007 Proceedings edited by: I. Zelinka, Z. Oplatkova, A. Orsoni (pp. 560-565). European Council for Modeling and Simulation. doi:10.7148/2007-0560.



This paper tests the robustness of analytical results on performance measures for a production-inventory system with an unreliable production facility. A ba- sic model is considered which involves a single produc- tion machine with constant production rate which op- erates as long as the accumulated inventory is below a pre-set threshold, and is idle otherwise. The demand process follows a compound Poisson distribution and the operating time of a machine until failure as well as the repair time of a failed machine are assumed to be exponentially distributed. A demand that cannot be fully satisfied from existing inventory takes whatever is available and the rest of the demand is lost. Ana- lytical results exist only for the special case where the order sizes are exponentially distributed. In this paper, a simulation model is built to obtain performance mea- sures for the same production-inventory system facing other demand processes. These results are used to test the robustness of the analytical results to changes in the demand process.

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