Control policies for two-stage, pull-type production/inventory systems with constrained average cost criterion

M. B. Gursoy, H. Danhong

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

We consider a two-stage, pull-type production/inventory system with a known service mechanism at the first stage. Set-ups and start-ups are involved in the operation of the second stage. We develop a production control policy for the second stage, within the class of (R, r) continuous-review policies, that minimizes the long run average number of set-ups and start-ups subject to a constraint on the number of customers that are lost. We use a semi-Markov decision model to obtain an optimal policy for the operation of the second stage. The structure of the optimal policy suggests to use a suboptimal look-back policy that delays the set-up at the second stage if the buffer lacks sufficient raw material.

Original languageAmerican English
Title of host publicationProceedings of the Industrial Engineering Research Conference
EditorsDeborah A. Mitta, Laura I. Burke, John R. English, Jennie Gallimore, Georgia-Ann Klutke, Gregory L. Tonkay
PublisherPubl by IIE
Pages754-758
Number of pages5
ISBN (Print)0898061326
StatePublished - 1993
EventProceedings of the 2nd Industrial Engineering Research Conference - Los Angeles, CA, USA
Duration: May 26 1993May 28 1993

Publication series

NameProceedings of the Industrial Engineering Research Conference

Other

OtherProceedings of the 2nd Industrial Engineering Research Conference
CityLos Angeles, CA, USA
Period5/26/935/28/93

ASJC Scopus subject areas

  • General Engineering

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