| Article ID: | iaor2002200 |
| Country: | Netherlands |
| Volume: | 98 |
| Issue: | 1 |
| Start Page Number: | 291 |
| End Page Number: | 311 |
| Publication Date: | Dec 2000 |
| Journal: | Annals of Operations Research |
| Authors: | Taksar Michael I., Yang Jun, Yan Houmina |
This paper studies the scheduling problem for two products on a single production facility. The objective is to specify a production and setup policy that minimizes the average inventory, backlog, and setup costs. Assuming that the production rate can be adjusted during the production runs, we provide a close form for an optimal production and setup schedule. Dynamic programming and Hamilton–Jacobi–Bellman equation is used to verify the optimality of the obtained policy.