Average-Cost Optimal Policies for an Unreliable Flexible Multiproduct Machine

International Journal of Flexible Manufacturing Systems, Vol. 11, No. 2, pp. 147-157, 1999

14 Pages Posted: 18 Apr 2008

See all articles by Suresh Sethi

Suresh Sethi

University of Texas at Dallas - Naveen Jindal School of Management

Hanqin Zhang

Chinese Academy of Sciences (CAS) - Academy of Mathematics and Systems Sciences

Abstract

This paper is concerned with optimal production planning on a single failure-prone flexible machine that produces N distinct part types. The machine is flexible in the sense that no setup is required for switching from production of one part type to another. We consider the problem of controlling production rates to minimize the expected long-run average cost of product surpluses over time. We assume constant unit holding and shortage costs and constant demand rates for the part types. Moreover, the costs are assumed to be the same for all products. We provide an explicit optimal solution for the problem.

Keywords: multiproduct FMS, long run average cost , hedging point policy, flexible manufacturing systems, unreleliable machines, production planning

JEL Classification: M11, C61

Suggested Citation

Sethi, Suresh and Zhang, Hanqin, Average-Cost Optimal Policies for an Unreliable Flexible Multiproduct Machine. International Journal of Flexible Manufacturing Systems, Vol. 11, No. 2, pp. 147-157, 1999. Available at SSRN: https://ssrn.com/abstract=1121544

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

Hanqin Zhang

Chinese Academy of Sciences (CAS) - Academy of Mathematics and Systems Sciences ( email )

Zhong-Guan-Cun-Dong-Lu 55, Haidian District
Beijing, Beijing 100080
China

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