Author
Tan, Baris, Ozkan, E.
Publication Date
2025-01-16
Publication Place
-
Elsevier
Subject
Asymptotic optimality, Inventory control, Energy consumption, Make-to-stock system, Production
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
0377-2217
Record ID
b8083891-ae60-4d9c-a5b3-afbadded559e
Library Location
Industrial Engineering
Date
2025-01-16
Notes
TÜBİTAK ; European Union's Horizon 2020 ; Türkiye Bilimler Akademisi
Sample Text
We study a make-to-stock manufacturing system in which a single server makes the production. The server consumes energy, and its power consumption depends on the server state: a busy server consumes more power than an idle server, and an idle server consumes more power than a turned-off server. When a server is turned on, it completes a costly set-up process that lasts a while. We jointly control the finished goods inventory and the server's energy consumption. The objective is to minimize the long-run average inventory holding, backorder, and energy consumption costs by deciding when to produce, when to idle or turn off the server, and when to turn on a turned-off server. Because the exact analysis of the problem is challenging, we consider the asymptotic regime in which the server is in the conventional heavy-traffic regime. We formulate a Brownian control problem (BCP) with impulse and singular controls. In the BCP, the impulse control appears due to server shutdowns, and the singular control appears due to server idling. Depending on the system parameters, the optimal BCP solution is either a control-band or barrier policy. We propose a simple heuristic control policy from the optimal BCP solution that can easily be implemented in the original (non-asymptotic) system. Furthermore, we prove the asymptotic optimality of the proposed control policy in a Markovian setting. Finally, we show that our proposed policy performs close to optimal in numerical experiments.
DOI
10.1016/j.ejor.2024.08.028
Cilt
320
