We consider the problem of production control in a single machine, single product, unreliable manufacturing system facing a constant demand d. The goal is to minimize the expected average (per unit time) inventory/backlog costs. Under heavy traffic condition, i.e., when the average production...

We present an approach of hierarchical decision making in production planning and capacity expansion problems under uncertainty. We show that under reasonable assumptions, the strategic level management can base the capacity decision on aggregated information from the shopfloor, and the...

We present a new paradigm of hierarchical decision making in production planning and capacity expansion problems under uncertainty. We show that under reasonable assumptions, the strategic level management can base the capacity decision on aggregated information from the shop floor, and the...