Article ID: | iaor2003193 |
Country: | United Kingdom |
Volume: | 29 |
Issue: | 9 |
Start Page Number: | 1195 |
End Page Number: | 1206 |
Publication Date: | Aug 2002 |
Journal: | Computers and Operations Research |
Authors: | Lou Sheldon X.C., Kogan Konstantin |
Keywords: | production |
The paper studies one-part type, multiple-stage production system with periodic demands. A buffer of infinite capacity is placed after each machine. Inventory flow through buffers is controlled by machine production rates. The objective is to find a cyclic production rate, which minimizes all inventory-related expenses over an infinite planning horizon. With the aid of the maximum principle, optimal production policies are derived and the continuous-time scheduling problem is reduced to a discrete timing problem. As a result, a polynomial-time algorithm is suggested to calculate the optimal production rate. A numerical example is used to illustrate the algorithm.