Özener, O. Ö.Güllü, R.Erkip, N.2016-02-082016-02-0820140217-5959http://hdl.handle.net/11693/26467In this study, we investigate a single-item, periodic-review inventory problem where the production capacity is limited and unmet demand is backordered. We assume that customer demand in each period is a stationary, discrete random variable. Linear holding and backorder cost are charged per unit at the end of a period. In addition to the variable cost charged per unit ordered, a positive fixed ordering cost is incurred with each order given. The optimization criterion is the minimization of the expected cost per period over a planning horizon. We investigate the infinite horizon problem by modeling the problem as a discrete-time Markov chain. We propose a heuristic for the problem based on a particular solution of this stationary model, and conduct a computational study on a set of instances, providing insight on the performance of the heuristic.EnglishCost accountingMarkov processesRandom processesCapacity restrictionComputational studiesDiscrete random variablesDiscrete time Markov chainsFixed ordering costsInfinite horizon problemsInventoryOptimization criteriaCostsArticle10.1142/S02175959145001951793-7019