A make-to-stock production system with an emergency production rate

Wikrom Jaruphongsa, Chulung Lee, Wei Lin

Research output: Contribution to conferencePaper

Abstract

We consider a make-to-stock production system in which items can be produced under two production rates: normal and emergency. Under Poisson demands and exponential production lead-times, the optimal control policy is characterized by two critical inventory levels. For each production rate, there exists a critical inventory level below which it is optimal to produce under this rate. An M/M/1/S queueing model with state-dependent arrival rates is analyzed to compute the average total cost per unit time under the optimal control policy. Through numerical study, we show that the production system with two production rates has a significant benefit over the one with single production rate.

Original languageEnglish
Pages425-430
Number of pages6
Publication statusPublished - 2004
EventIIE Annual Conference and Exhibition 2004 - Houston, TX, United States
Duration: 2004 May 152004 May 19

Other

OtherIIE Annual Conference and Exhibition 2004
CountryUnited States
CityHouston, TX
Period04/5/1504/5/19

Keywords

  • Make-to-stock Production System
  • Markovian Process
  • Normal/Emergency Production Rates

ASJC Scopus subject areas

  • Engineering(all)

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  • Cite this

    Jaruphongsa, W., Lee, C., & Lin, W. (2004). A make-to-stock production system with an emergency production rate. 425-430. Paper presented at IIE Annual Conference and Exhibition 2004, Houston, TX, United States.