We consider a manufacturer’s stochastic production/inventory problem under periodic review and present methods for safety stock determination to cope with uncertainties that are caused by stochastic demand and different types of yield randomness. Following well-proven inventory control...

For an uncertain production system, the rule that controls the flow of material relies on parameters, such as the yield rates and the demand rate. These parameters are estimates, and they are usually inaccurate. In this paper, we analyze a type of "pull" rule called a proportional restoration...