Manufacturing systems with random breakdowns and deteriorating items

This paper deals with the inventory control problem for production system i n which multiple part types are produced and the produced parts are suppose d to be deteriorating with fixed rates. The capacity of the production syst em is assumed to be random and bounded. The inventory control problem is fo rmulated as a stochastic optimization problem that falls into the framework of the optimization problem of the class of systems with Markovian jumps. The optimal production rates are characterized and a numerical example is w orked out to show the validness of the theoretical results. (C) 2001 Elsevi er Science Ltd. All rights reserved.