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Optimal Control of a Production Process Subject to Random Deterioration

Author

Listed:
  • Helmut Schneider

    (Louisiana State University, Baton Rouge, Louisiana)

  • Kwei Tang

    (Louisiana State University, Baton Rouge, Louisiana)

  • Colm O'Cinneide

    (University of Arkansas, Fayetteville, Arkansas)

Abstract

A production process exhibits a decreasing pattern in the process mean in the course of production. We address the decision problem of selecting the starting level of the process mean and the level at which the process mean should be adjusted back to the starting level. The costs to be minimized are the long-run average cost of production, adjustment and loss for defective items. In addition to the optimal solution, simple approximate solutions are developed and shown to be more cost effective than a simple linear policy often applied to this problem.

Suggested Citation

  • Helmut Schneider & Kwei Tang & Colm O'Cinneide, 1990. "Optimal Control of a Production Process Subject to Random Deterioration," Operations Research, INFORMS, vol. 38(6), pages 1116-1122, December.
    • Handle: RePEc:inm:oropre:v:38:y:1990:i:6:p:1116-1122
    DOI: 10.1287/opre.38.6.1116
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    File URL: http://dx.doi.org/10.1287/opre.38.6.1116
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    Citations

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    Cited by:

    1. Al-Sultan, K. S. & Al-Fawzan, M. A., 1997. "An extension of Rahim and Banerjee's model for a process with upper and lower specification limits," International Journal of Production Economics, Elsevier, vol. 53(3), pages 265-280, December.
    2. Al-Sultan, Khaled S. & Raouf, A., 1998. "Optimal production run for processes with constant and random drifts," International Journal of Production Economics, Elsevier, vol. 56(1), pages 13-19, September.
    3. Luceño, Alberto, 2000. "Minimum cost dead band adjustment schemes under tool-wear effects and delayed dynamics," Statistics & Probability Letters, Elsevier, vol. 50(2), pages 165-178, November.
    4. Williams, William W. & Tang, Kwei & Gong, Linguo, 2000. "Process improvement for a container-filling process with random shifts," International Journal of Production Economics, Elsevier, vol. 66(1), pages 23-31, June.

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