Article ID: | iaor2000992 |
Country: | United States |
Volume: | 80 |
Issue: | 2 |
Start Page Number: | 299 |
End Page Number: | 317 |
Publication Date: | Feb 1994 |
Journal: | Journal of Optimization Theory and Applications |
Authors: | Sethi S.P., Zhang Q., Zhou X.Y. |
This paper presents an extension of earlier research on hierarchical control of stochastic manufacturing systems with linear production costs. A new method is introduced to construct asymptotically optimal open-loop and feedback controls for manufacturing systems in which the rates of machine breakdown and repair are much larger than the rate of fluctuation in demand and rate of discounting of cost. This new approach allows us to carry out an asymptotic analysis on manufacturing systems with convex inventory/backlog and production costs as well as obtain error bound estimates for constructed open loop controls. Under appropriate conditions, an asymptotically optimal Lipschitz feedback control law is obtained.