Feedback Production Planning in a Stochastic Two-Machine Flowshop: Asymptotic Analysis and Computational Results

Journal Of Production Economics, 30-31, 1993, 79-93

Posted: 6 May 2020

See all articles by Suresh Sethi

Suresh Sethi

University of Texas at Dallas - Naveen Jindal School of Management

Houmin Yan

City University of Hong Kong (CityUHK) - Faculty of Business

Qing Zhang

Department of Mathematics, University of Georgia

Xun Yu Zhou

The Chinese University of Hong Kong (CUHK) - Department of Systems Engineering & Engineering Management

Date Written: 1993

Abstract

This paper presents an asymptotic analysis of hierarchical production planning in a manufacturing system with two tandem machines that are subject to breakdown and repair. Since the number of parts in the buffer between the two machines needs to be non-negative, the problem is inherently a state constrained problem. As the rate of machines breakdown and repair approaches infinity, the analysis results in a limiting problem in which the stochastic machine capacity is replaced by the equilibrium mean capacity. The value function for the original problem is proved to converge to the value function of the limiting problem. This suggests a heuristic to construct a feedback control for the original stochastic problem from the feedback control of the limiting deterministic problem. Computational results are presented to illustrate our heuristic.

Keywords: aymptotic analysis, stochastic machine, state constrained problem

JEL Classification: C61, M11, M20

Suggested Citation

Sethi, Suresh and Yan, Houmin and Zhang, Qing and Zhou, Xun Yu, Feedback Production Planning in a Stochastic Two-Machine Flowshop: Asymptotic Analysis and Computational Results (1993). Journal Of Production Economics, 30-31, 1993, 79-93, Available at SSRN: https://ssrn.com/abstract=3590777

Suresh Sethi (Contact Author)

University of Texas at Dallas - Naveen Jindal School of Management ( email )

800 W. Campbell Road, SM30
Richardson, TX 75080-3021
United States

Houmin Yan

City University of Hong Kong (CityUHK) - Faculty of Business ( email )

Tat Chee Avenue, Kowloon, Hong Kong SAR
Kowloon
Hong Kong

Qing Zhang

Department of Mathematics, University of Georgia ( email )

Athens, GA 30602-6254
United States

Xun Yu Zhou

The Chinese University of Hong Kong (CUHK) - Department of Systems Engineering & Engineering Management ( email )

Shatin, New Territories
Hong Kong
852 2609-8320 (Phone)
852 2603-5505 (Fax)

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