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| Author: | Ciarallo, F. Akella, R. Morton, T. |
| Title: | A periodic review, production planning model with uncertain capacity and uncertain demand - optimality of extended myopic policies |
| Journal: | Management Science
1994 : MAR, VOL. 40:3, p. 320-332 |
| Index terms: | PRODUCTION PLANNING POLICY PERIODICALS |
| Language: | eng |
| Abstract: | Increasing product complexity, manufacturing environment complexity and an increased emphasis on product quality are all factors leading to uncertainties in production processes. This paper treats the aggregate planning problem for a single product with random demand and random capacity. In the single-period problem, random capacity does not affect the optimal policy but results in a unimodal, nonconvex cost function. In the multiple-period and infinite-horizon settings order-up-to policies that are dependent on the distribution of capacity are shown to be optimal in spite of a non-convex cost. |
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