Article ID: | iaor2009891 |
Country: | United States |
Volume: | 19 |
Issue: | 3 |
Start Page Number: | 173 |
End Page Number: | 194 |
Publication Date: | Jan 2007 |
Journal: | International Journal of Flexible Manufacturing Systems |
Authors: | Matta Andrea, Tomasella Maurizio, Valente Anna |
Keywords: | programming: dynamic, markov processes |
This paper presents an optimal solution, based on Markov decision theory, for the problem of optimal capacity-related reconfiguration of manufacturing systems, under stochastic market demand. Both capacity expansion and reduction are considered. The solution quantitatively takes into account the effect of the ramp-up phenomenon, following each reconfiguration, on the optimal policy. A closed-form solution is presented for when product demand is independently and generally distributed over time. A real case concerning a flexible manufacturing line in the automotive sector is shown, to prove that ignoring the ramp-up effect in the decision process can lead to significant increases in overall costs.