C. Shu et Jr. Perkins, Optimal PHP production of multiple part-types on a failure-prone machine with quadratic buffer costs, IEEE AUTO C, 46(4), 2001, pp. 541-549
We consider a single, failure-prone machine, producing multiple part-types.
The objective is to minimize the expected sum of quadratic buffer costs. I
n general, the optimal solution to this problem is unknown. However, by res
tricting the allowable set of control policies to the class of prioritized
hedging point policies, we are able to determine simple, analytical express
ions for the optimal hedging points. We also provide some results for choos
ing the optimal priority ordering.