Optimal Dynamic Scheduling Policy for a Make-To-Stock Production System

Albert Y. Ha
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Albert Y. Ha: Yale University, New Haven, Connecticut

Operations Research, 1997, vol. 45, issue 1, 42-53

Abstract: This paper considers the dynamic scheduling problem of a single-server, make-to-stock queue with two products. For the case of Poisson demands and exponential production times, we show that it is optimal to produce the product with the larger b μ index when it is backordered. If the production times are identically distributed, the optimal policy can further be characterized by monotone switching curves. We also prove that a base stock policy coupled with a switching curve is optimal for some initial inventory levels. A simple linear switching rule for determining production priority is proposed and compared with other heuristic policies in a computational experiment.

Keywords: inventory/production; optimal control policies; production/scheduling; sequencing in a stochastic system; dynamic programming/optimal control; applications (search for similar items in EconPapers)
Date: 1997
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