Inventory control in production–inventory systems with random yield and rework : The unit-tracking approach
This paper considers a single-stage make-to-stock production–inventory system under random demand and random yield, where defective units are reworked. We examine how to set cost-minimizing production/order quantities in such imperfect systems, which is challenging because a random yield implies an uncertain arrival time of outstanding units and the possibility of them crossing each other in the p