IDEAS home Printed from https://ideas.repec.org/a/inm/ormoor/v49y2024i2p948-985.html
   My bibliography  Save this article

Asymptotically Optimal Control of Make-to-Stock Systems

Author

Listed:
  • Xuefeng Gao

    (Department of Systems Engineering and Engineering Management, The Chinese University of Hong Kong, Hong Kong SAR, China)

  • Junfei Huang

    (Department of Decisions, Operations and Technology, CUHK Business School, The Chinese University of Hong Kong, Hong Kong SAR, China)

Abstract

We consider multiclass make-to-stock production/inventory systems in which the manager makes three decisions, including pricing, outsourcing, and scheduling, to maximize the long-run average profit. For a sequence of systems in the heavy-traffic regime, with linear or strictly convex holding/waiting cost functions, we propose a sequence of policies and establish its asymptotic optimality. Our proof combines the lower bound approach and a thorough steady-state analysis of the systems. We also establish general results on the existence and tightness of the stationary distributions of the state processes under a more general family of policies.

Suggested Citation

  • Xuefeng Gao & Junfei Huang, 2024. "Asymptotically Optimal Control of Make-to-Stock Systems," Mathematics of Operations Research, INFORMS, vol. 49(2), pages 948-985, May.
    • Handle: RePEc:inm:ormoor:v:49:y:2024:i:2:p:948-985
    DOI: 10.1287/moor.2021.0161
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/moor.2021.0161
    Download Restriction: no
    File URL: https://libkey.io/10.1287/moor.2021.0161?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormoor:v:49:y:2024:i:2:p:948-985. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.