Dynamic Scheduling in a Make-to-Stock System: A Partial Characterization of Optimal Policies

Francis De Vericourt (), Fikri Karaesmen () and Yves Dallery ()
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Francis De Vericourt: Laboratoire d'Informatique de Paris 6 (LIP6-CNRS), Universite Pierre et Marie Curie, Paris, France
Fikri Karaesmen: Laboratoire Productique Logistique, Ecole Centrale Paris, Chatenay-malabry, France
Yves Dallery: Laboratoire Productique Logistique, Ecole Centrale Paris, Chatenay-malabry, France

Operations Research, 2000, vol. 48, issue 5, 811-819

Abstract: We consider the problem of dynamically allocating production capacity between two products to minimize the average inventory and backorder costs per unit time in a make-to-stock single machine system. Using sample path comparisons and dynamic programming, we give a characterization of the optimal hedging point policy for a certain region of the state space. The characterization is simple enough to lead to easily implementable heuristics and provides a formal justification of some of the earlier heuristics proposed.

Keywords: Production/scheduling; Stochastic: multi-item; Queues: make-to-stock system; Inventory/production: optimal policies (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (24)

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