Optimal Production Planning in Pull Flow Lines with Multiple Products

European Journal of Operational Research, Vol. 119, No. 3, pp. 582-604, December 1999

Posted: 8 Apr 2008

See all articles by Houmin Yan

Houmin Yan

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

Suresh Sethi

University of Texas at Dallas - Naveen Jindal School of Management

Date Written: 1999

Abstract

The paper is concerned with the problem of optimal production planning in deterministic pull flow lines with multiple products. The objective is to specify the production policy that minimizes the total inventory and backlog costs overtime. Assuming constant product demands and non-decreasing unit holding costs along the flow, an algorithm which obtains the optimal production policy is developed. This algorithm works for the discounted-cost function as well. The HJB equation is used to verify the optimality of the policy, and the computational complexity of the algorithm is discussed. Some illustrative examples are also included.

Keywords: Production planning, HJB equation, Pull systems, Optimal Control

JEL Classification: M11, C61

Suggested Citation

Yan, Houmin and Sethi, Suresh, Optimal Production Planning in Pull Flow Lines with Multiple Products (1999). European Journal of Operational Research, Vol. 119, No. 3, pp. 582-604, December 1999. Available at SSRN: https://ssrn.com/abstract=1117730

Houmin Yan

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

Shatin, New Territories
Hong Kong

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

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