Article ID: | iaor20021722 |
Country: | United States |
Volume: | 49 |
Issue: | 2 |
Start Page Number: | 246 |
End Page Number: | 270 |
Publication Date: | Mar 2001 |
Journal: | Operations Research |
Authors: | Wein Lawrence M., Markowitz David M. |
Keywords: | production, inventory |
This paper examines how setups, due dates, and the mix of standardized and customized products affect the scheduling of a single machine operating in a dynamic and stochastic environment. We restrict ourselves to the class of dynamic cyclic policies, where the machine busy/idle policy and lot-sizing decisions are controlled in a dynamic fashion, but different products must be produced in a fixed sequence. As in earlier work, we conjecture that an averaging principle holds for this queueing system in the heavy traffic limit, and optimize over the class of dynamic cyclic policies. The results allow for a detailed discussion of the interactions between the due-date, setup, and product mix facets of the problem.