Optimal control of a simple manufacturing system with restarting costs

We consider the optimal control of an unreliable manufacturing system with restarting costs. In 1986 and 1988, Akella and Kumar (for the infinite hori zon discounted cost) and Bielecki and Kumar (for the infinite horizon avera ge expected cost) show that the optimal policy is given by an optimal inven tory level ("hedging point policy"). Inspired by these simple systems, we e xplore a new class of models in which the restarting costs are explicitly t aken into account. The class of models discussed often allow complete analy tical discussions. In particular, the optimal policy exhibits an (s; S) typ e form. (C) 2000 Elsevier Science B.V. All rights reserved.