Multiproduct Systems with Both Setup Times and Costs: Fluid Bounds and Schedules

Wei-Min Lan () and Tava Lennon Olsen ()
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Wei-Min Lan: Industrial and Operations Engineering Department, University of Michigan, 1205 Beal Avenue, Ann Arbor, Michigan 48109-2117
Tava Lennon Olsen: John M. Olin School of Business, Washington University in St. Louis, One Brookings Drive, St. Louis, Missouri 63130-4899

Operations Research, 2006, vol. 54, issue 3, 505-522

Abstract: This paper considers a multiproduct, single-server production system where both setup times and costs are incurred whenever the server changes product. The system is make-to-order with a per unit backlogging cost. The objective is to minimize the long-run average cost per unit time. Using a fluid model, we provide a closed-form lower bound on system performance. This bound is also shown to provide a lower bound for stochastic systems when scheduling is local or static, but is only an approximation when scheduling is global or dynamic. The fluid bound suggests both local and global scheduling heuristics, which are tested for the stochastic system via a simulation study.

Keywords: production/scheduling; stochastic sequencing; queues; limit theorems (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (6)

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