Abstract
In this paper, we address the optimal control problem of the production rate and maintenance rate of a failure prone manufacturing system. The discounted cost of our optimization problem is assumed to be a function of the inventory and the maintenance rate, where certain cost rates are specified for positive and negative inventories and maintenance, and there is a constant demand rate for the commodity produced. The objective of this paper is to choose the rates of production and maintenance to minimize a discounted cost over the infinite horizon. It aims at partially characterizing the optimal solution of the problem. In the case where the maximum maintenance rate v̄ is equal to a constant coefficient times the maximum production rate ū, we obtain a solution and show that the optimal solution is characterized by a critical surface, namely 'hedging surface', and we give its description.
| Original language | English |
|---|---|
| Pages (from-to) | 607-608 |
| Number of pages | 2 |
| Journal | Proceedings of the IEEE Conference on Decision and Control |
| Volume | 1 |
| Publication status | Published - 1994 |
| Externally published | Yes |
| Event | Proceedings of the 33rd IEEE Conference on Decision and Control. Part 1 (of 4) - Lake Buena Vista, FL, USA Duration: 14 Dec 1994 → 16 Dec 1994 |