Article ID: | iaor2002202 |
Country: | Netherlands |
Volume: | 98 |
Issue: | 1 |
Start Page Number: | 333 |
End Page Number: | 351 |
Publication Date: | Dec 2000 |
Journal: | Annals of Operations Research |
Authors: | Sethi Suresh P., Zhang Hanqin, Bisi Arnab, Presman Ernst L. |
Keywords: | programming: dynamic, control processes |
We consider a production planning problem in a two-machine flowshop subject to breakdown and repair of machines and subject to nonnegativity and upper bound constraints on work-in-process. The objective is to choose machine production rates over time to minimize the long-run average inventory/backlog and production costs. For sufficiently large upper bound on the work-in-process, the problem is formulated as a stochastic dynamic program. We then establish a verification theorem and a partial characterization of the optimal control policy if it exists.