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Average Cost Optimality for an Unreliable Two-Machine Flowshop with Limited Internal Buffer

Author

Listed:
  • Ernst Presman
  • Suresh Sethi
  • Hanqin Zhang
  • Arnab Bisi

Abstract

We consider a production planning problem in a two-machine flowshop subject to breakdown and repair of machines and subject to nonnegativity and upper bound constraints on work-in-process. The objective is to choose machine production rates over time to minimize the long-run average inventory/backlog and production costs. For sufficiently large upper bound on the work-in-process, the problem is formulated as a stochastic dynamic program. We then establish a verification theorem and a partial characterization of the optimal control policy if it exists. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • Ernst Presman & Suresh Sethi & Hanqin Zhang & Arnab Bisi, 2000. "Average Cost Optimality for an Unreliable Two-Machine Flowshop with Limited Internal Buffer," Annals of Operations Research, Springer, vol. 98(1), pages 333-351, December.
    • Handle: RePEc:spr:annopr:v:98:y:2000:i:1:p:333-351:10.1023/a:1019272811055
    DOI: 10.1023/A:1019272811055
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