Optimal Production Planning in a StochasticManufacturing System with Long - Run Average Cost 1
نویسندگان
چکیده
1 Abstract. This paper is concerned with the optimal production planning in a dynamic stochastic manufacturing system consisting of a single or parallel machine that are failure prone and facing a constant demand. The objective is to choose the rate of production over time in order to minimize the long-run average cost of production and surplus. The analysis proceeds with a study of the corresponding problem with a discounted cost. It is shown using the vanishing discount approach that the Hamilton-Jacobi-Bellman equation for the average cost problem has a solution giving rise to the minimal average cost and the so-called potential function. The result helps in establishing a veriication theorem. Finally, the optimal control policy is speciied in terms of the potential function.
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