1. Manufacturing-Remanufacturing Failure-Prone Systems under Random Demands
- Author
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Vladimir Polotski, Jean-Pierre Kenné, Samir Ouaret, and Ali Gharbi
- Subjects
Stochastic control ,Dynamic programming ,Mathematical optimization ,Engineering ,Partial differential equation ,business.industry ,Production control ,Hamilton–Jacobi–Bellman equation ,Function (mathematics) ,Optimal control ,business ,Remanufacturing - Abstract
The problem of production control for a hybrid manufacturing/remanufacturing system under uncertainties is analyzed. Two sources of uncertainties are considered: machines random breakdowns and repairs are modeled as a Poisson process, and demand level variations are modeled as a diffusion type process. The solution to optimal control problem is determined numerically by solving the Hamilton-Jacobi-Bellman (HJB) equations which are shown to be second order partial differential equations (PDEs). The optimal policy for manufacturing is of hedging-point type, while for remanufacturing it is a three-value function. We illustrate obtained results by simulation examples and analyze how the optimal production policy and optimal cost evolve while the statistical characteristics of the random demand vary.
- Published
- 2013
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