Optimal hybrid push/pull control strategies for a parallel multistage system: Part I

A multistage production/inventory system is modelled. The system structure, which has the form of an assembly network, is abstracted from the production process of a typical integrated iron and steel works. The system is modelled as a Markov Decision Process (MDP). Combinations of Just-In-Time (pull) and MRP (push) policies are used as alternatives in the MDP. Optimal hybrid strategies are developed. In part II, the authors extend the present observations to a more general case.