Optimal and Hierarchical Controls in Dynamic Stochastic Manufacturing Systems: A Review

ITORMS (Interactive Transactions of OR/MS), 3(2), 2000

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

Hanqin Zhang

Institute of Applied Mathematics Academia Sinica

Qing Zhang

Department of Mathematics, University of Georgia

Date Written: 2000

Abstract

Most manufacturing systems are large and complex and operate in an uncertain environment. One approach to managing such systems is that of hierarchical decomposition. This paper reviews the research devoted to proving that a hierarchy based on the frequencies of occurrence of different types of events in the systems results in decisions that are asymptotically optimal as the rates of some events become large compared to those of others. The paper also reviews the research on stochastic optimal control problems associated with manufacturing systems, their dynamic programming equations, existence of solutions of these equations, and verification theorems of optimality for the systems. Manufacturing systems that are addressed include single machine systems, flowshops, and jobshops producing multiple products. These systems may also incorporate random production capacity and demands, and decisions such as production rates, capacity expansion, and promotional campaigns. The paper concludes with a review of computational results and areas of applications.

Keywords: Optimal Control, Stochastic Manufacturing Systems

JEL Classification: C61, M11, M20

Suggested Citation

Sethi, Suresh and Yan, Houmin and Zhang, Hanqin and Zhang, Qing, Optimal and Hierarchical Controls in Dynamic Stochastic Manufacturing Systems: A Review (2000). ITORMS (Interactive Transactions of OR/MS), 3(2), 2000, Available at SSRN: https://ssrn.com/abstract=3590690

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

Hanqin Zhang

Institute of Applied Mathematics Academia Sinica ( email )

Beijing, 100080
China

Qing Zhang

Department of Mathematics, University of Georgia ( email )

Athens, GA 30602-6254
United States

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