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Optimal Production and Setup Scheduling: A One-Machine, Two-Product System

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Abstract

This paper studies the scheduling problem for two products on a single production facility. The objective is to specify a production and setup policy that minimizes the average inventory, backlog, and setup costs. Assuming that the production rate can be adjusted during the production runs, we provide a close form for an optimal production and setup schedule. Dynamic programming and Hamilton–Jacobi–Bellman equation is used to verify the optimality of the obtained policy.

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Authors and Affiliations

  1. Department of Systems Engineering and Engineering Management, The Chinese University of Hong Kong, Shatin, N.T., Hong Kong

    Jun Yang

  2. Department of Applied Mathematics, SUNY at Stony Brook, Stony Brook, NY, USA

    Houmina Yan & M.I. Taksar

Authors
  1. Jun Yang
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  2. Houmina Yan
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  3. M.I. Taksar
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Yang, J., Yan, H. & Taksar, M. Optimal Production and Setup Scheduling: A One-Machine, Two-Product System. Annals of Operations Research 98, 291–311 (2000). https://doi.org/10.1023/A:1019268710146

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  • DOI: https://doi.org/10.1023/A:1019268710146

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