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Computational Evaluation of Hierarchical Production Control Policies for Stochastic Manufacturing Systems

Author

Listed:
  • Chand Samaratunga

    (University of Toronto, Toronto, Ontario, Canada)

  • Suresh P. Sethi

    (University of Toronto, Toronto, Ontario, Canada)

  • Xun Yu Zhou

    (The Chinese University of Hong Kong, Shatin, Hong Kong)

Abstract

This paper is concerned with near-optimal control of manufacturing systems consisting of two unreliable machines in tandem and having the objective of minimizing the total discounted cost of inventories/shortages over an infinite horizon. Asymptotic optimal feedback controls are constructed with respect to the rate of machine breakdown/repair as compared to the given discount rate. Performance of these controls, known as hierarchical controls , is compared with the optimal cost (when possible) and the costs obtained with two well-known heuristics, known as Kanban controls and two boundary controls . It is shown that hierarchical controls perform better than Kanban controls in some cases and no worse in others. Costs of hierarchical and two boundary controls are not significantly different, although the former is a simpler policy than the latter. Also examined computationally is the asymptotic nature of hierarchical controls.

Suggested Citation

  • Chand Samaratunga & Suresh P. Sethi & Xun Yu Zhou, 1997. "Computational Evaluation of Hierarchical Production Control Policies for Stochastic Manufacturing Systems," Operations Research, INFORMS, vol. 45(2), pages 258-274, April.
    • Handle: RePEc:inm:oropre:v:45:y:1997:i:2:p:258-274
    DOI: 10.1287/opre.45.2.258
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    Cited by:

    1. Marisol Valencia Cárdenas & Juan Gabriel Vanegas López & Juan Carlos Correa Morales & Jorge Aníbal Restrepo Morales, 2017. "Comparing forecasts for tourism dynamics in Medellín, Colombia," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 86, pages 199-230, Enero - J.
    2. Valencia Cárdenas, Marisol & Vanegas López, Juan Gabriel & Correa Morales, Juan Carlos & Restrepo Morales, Jorge Aníbal, 2016. "Comparación de pronósticos para la dinámica del turismo en Medellín, Colombia," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue 86, pages 199-230, December.
    3. Houmin Yan & Xun Yu Zhou & G. Yin, 1999. "Approximating an Optimal Production Policy in a Continuous Flow Line: Recurrence and Asymptotic Properties," Operations Research, INFORMS, vol. 47(4), pages 535-549, August.
    4. S. P. Sethi & H. Zhang & Q. Zhang, 2000. "Hierarchical Production Control in Dynamic Stochastic Jobshops with Long-Run Average Cost," Journal of Optimization Theory and Applications, Springer, vol. 106(2), pages 231-264, August.

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