Abstract
This paper studies the service rate of the production inventory system with limited production capacity. After reviewing previous literature, an estimation method which applies the batch means method is proposed, the performances of the proposed method and previous methods are analyzed empirically. Based on the results, the influences of production capacity and safety stock levels upon service rate for two types of production ordering systems are analyzed. As a result, it is clarified that the production ordering system, whose inventory variance is smaller in tight production capacity, makes service rate higher than that of the other.
