TY - JOUR

T1 - Optimal finite-horizon production control in a defect-prone environment

AU - Kogan, Konstantin

AU - Shu, Chang

AU - Perkins, James R.

PY - 2004/10

Y1 - 2004/10

N2 - In this note, we consider a single-machine, single-part-type production system, operating in a defect-prone environment. It is assumed that there is a random yield proportion of nondefective parts, with known probability distribution. Over each production cycle, it is assumed that there is a single realization of the yield random variable. Furthermore, it is assumed that the system is operated under a periodic-review policy. Thus, the particular realization of the yield proportion cannot be determined prior to the end of the production horizon. The optimal production control, that minimizes a linear combination of expected surplus and shortage costs over the, planning horizon is shown to be piecewise constant, and the appropriate production levels and control break-points are determined as functions of the yield rate distribution.

AB - In this note, we consider a single-machine, single-part-type production system, operating in a defect-prone environment. It is assumed that there is a random yield proportion of nondefective parts, with known probability distribution. Over each production cycle, it is assumed that there is a single realization of the yield random variable. Furthermore, it is assumed that the system is operated under a periodic-review policy. Thus, the particular realization of the yield proportion cannot be determined prior to the end of the production horizon. The optimal production control, that minimizes a linear combination of expected surplus and shortage costs over the, planning horizon is shown to be piecewise constant, and the appropriate production levels and control break-points are determined as functions of the yield rate distribution.

UR - http://www.scopus.com/inward/record.url?scp=7244254688&partnerID=8YFLogxK

U2 - 10.1109/tac.2004.835597

DO - 10.1109/tac.2004.835597

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AN - SCOPUS:7244254688

SN - 0018-9286

VL - 49

SP - 1795

EP - 1800

JO - IEEE Transactions on Automatic Control

JF - IEEE Transactions on Automatic Control

IS - 10

ER -