Dynamic production plan of probabilistic market demand and fixed selling time with unreliable machines and obtainable working hour capacity

The Dynamic Production Plan Model for reaching an optimal control of the production undergoing the considerations of probabilistic market demand, future obtainable working hour capacity and unreliable machines is proposed in this paper. It can be applied to evaluate the optimal production rate to reduce the risk in the future of uncertainty. It is also suggested that the time interval of production, maintenance cost of an unreliable machine, transaction, penalty, holding costs, sales price and the machine reliability should also be taken into consideration. In addition, sensitivity analyses on the key variables of optimal solution are presented. Actually, this study efficiently provides a dynamic tool capable of controlling the production plan (rate) at any time for the production planner having great insight.