Optimal Production and Setup Scheduling : A One-Machine, Two-Product System

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Original languageEnglish
Pages (from-to)291-311
Journal / PublicationAnnals of Operations Research
Issue number1-4
Publication statusPublished - Dec 2000
Externally publishedYes


This paper studies the scheduling problem for two products on a single production facility. The objective is to specify a production and setup policy that minimizes the average inventory, backlog, and setup costs. Assuming that the production rate can be adjusted during the production runs, we provide a close form for an optimal production and setup schedule. Dynamic programming and Hamilton-Jacobi-Bellman equation is used to verify the optimality of the obtained policy.

Research Area(s)

  • Controllable production rate, HJB equation, Production and setup scheduling