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

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

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.
Original languageEnglish
Pages (from-to)291-311
JournalAnnals of Operations Research
Volume98
Issue number1-4
DOIs
Publication statusPublished - Dec 2000
Externally publishedYes

Research Keywords

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

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