Abstract
This paper deals with an unreliable manufacturing system in which no backlog is allowed. The hedging point policy is used to control production. This paper's objective is to find the optimum hedging point so as to minimize the average inventory cost. Firstly, for a tentative hedging point, we derive the limiting distribution of the inventory level. This derivation is accomplished by comparison between this system and a finite storage-production system. Based on it we calculate the average inventory cost and find the optimum hedging point.
Similar content being viewed by others
References
Akella R, Kumar PR (1986) Optimal control of production rate in a failure prone manufacturing system. IEEE Trans. Automat. Contr., Vol. AC-31, No. 2: 116–126
Asmussen S (1987) Applied probability and queues. John Wiley & Sons
Bielecki T, Kumar PR (1987) Optimality of zero-inventory policies for unreliable manufacturing systems. Operat. Res. (Special Issue in Manufacturing system) 36, No. 5: 532–541
Hu JQ, Xiang D (1993) The Queueing equivalence to a manufacturing system with failures. IEEE Trans. Automat. Contr., Vol. AC-38, No. 3
Kimemia JG, Gershwin SB (1983) An algorithm for the computer control of production in manufacturing systems. IIE Trans., Vol. AC-15: 353–362
Perry D, Levikson B (1989) Continuous production/inventory model with analogy to certain queueing and dam models. Adv. Appl. Prob. 21:123–141
Sharifnia A (1988) Production control of a manufacturing system with multiple machine states. IEEE Trans. Automat. Contr., Vol. AC-33, No. 7: 620–625
Author information
Authors and Affiliations
Additional information
This research was supported in part by the National Natural Science Foundation of China. Bin Liu was partially supported by ITDC, contract No. 105-82150.
Rights and permissions
About this article
Cite this article
Liu, B., Cao, J. Production control of an unreliable manufacturing system under the assumption of no backlog. Mathematical Methods of Operations Research 46, 103–117 (1997). https://doi.org/10.1007/BF01199465
Received:
Revised:
Issue Date:
DOI: https://doi.org/10.1007/BF01199465