By Topic

Hedging-point production control with multiple failure modes

Sign In

Full text access may be available.

To access full text, please use your member or institutional sign in.

Formats Non-Member Member
$31 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

1 Author(s)
Glasserman, P. ; Graduate Sch. of Bus., Columbia Univ., New York, NY, USA

We consider the control of a production facility subject to multiple failure modes. Motivated by a work of Akella-Kumar (1986) and Bielecki-Kumar (1988) on single-failure-mode models, we study hedging-point policies, in which production is controlled to its maximum rate whenever inventory is below a critical level and set to zero whenever inventory is above that level. The maximum production rate varies with the state of the machine. Assuming that the machine state is governed by a semi-Markov process, we evaluate average and discounted inventory costs for any hedging point, thus providing a simple mechanism for identifying optimal hedging points. Our most explicit results require that intervals in which demand exceeds production are exponentially distributed. We drop the exponential assumption at the expense of obtaining asymptotics rather than exact results

Published in:

Automatic Control, IEEE Transactions on  (Volume:40 ,  Issue: 4 )