Analysis of Average Cost Optimality for an Unreliable Two-Machine Flowshop
Proceedings of the Fourth International Conference on Optimization Techniques and Applications, pp. 94-112, 1998
29 Pages Posted: 18 Apr 2008
This paper is concerned with a production planning problem in a two-machine flowshop subject to breakdown and repair of machines subject to nonnegativity constraints on work-in-process. The objective is to choose machine production rates over time to meet the demand facing the flowshop at a minimum long-run average cost. It si shown that the dynamic programming equation for the problem has a solution consisting of the minimal average cost and the so-called potentila function. The result helps in establishing the verification theroem and partial characterization of the optimal control policy if it exists.
Keywords: Production planning, Dynamic programming, state constraints, feedback controls, optimal control theory, long-run average cost
JEL Classification: M11, C61
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