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- W2025375218 abstract "We consider the problem of controlling a stochastic industrial manufacturing system producing a single product. The demand for this system consists of two components: one is deterministic with constant rale dand the other is stochastic with random demand batches .The manager can decide at any time to turn on or turn oil the machine. He can also decide at any time to purchase any amount of product from outside vendors. The cost of system operation consists of linear holding cost, machine setup cost, fixed order cost and linear varied purchase cost. The objective is to minimize the total expected discounted cost. Under heavy traffic condition, this problem is approximated by an impulse control problem of Brownian motion, which is solved explicitly. Its solution is then converted into a policy for the original system, which turned out to be asymptotically optimal. The resulting policy is characterized by three parameters and is dubbed double band policy. When the inventorv reaches S 0 the machine is turned off and it is turned on again when the inventory decreases to level Q 0 If the inventory goes to zero, the manager will purchase qufrom outside vendor" @default.
- W2025375218 created "2016-06-24" @default.
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- W2025375218 date "1996-09-01" @default.
- W2025375218 modified "2023-10-14" @default.
- W2025375218 title "Double band policy for a classof stochastic industrialmanufacturing system in heavy traffic" @default.
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- W2025375218 doi "https://doi.org/10.1080/17442509608834069" @default.
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