Optimal Dynamic Scheduling Policy for a Make-To-Stock Production System
Operations Research · 1997 · Volume 45 · Issue 1
Abstract
This paper considers the dynamic scheduling problem of a single-server, make-to-stock queue with two products. For the case of Poisson demands and exponential production times, we show that it is optimal to produce the product with the larger b μ index when it is backordered. If the production times are identically distributed, the optimal policy can further be characterized by monotone switching curves. We also prove that a base stock policy coupled with a switching curve is optimal for some initial inventory levels. A simple linear switching rule for determining production priority is proposed and compared with other heuristic policies in a computational experiment.
Keywords
inventory/production, optimal control policies, production/scheduling, sequencing in a stochastic system, dynamic programming/optimal control, applications
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