We present a sufficient condition for a feedback Stackelberg equilibrium of a stochastic differential game on an infinite horizon. This condition gives rise to a system of elliptic partial differential equations involving a static Stackelberg game at the level of Lagrangian. As an example, we...

We consider a production-inventory planning problem with time-varying demands, convex production costs and a warehouse capacity constraint. It is solved by use of the Lagrangian form of the maximum principle. The possible existence of strong decision and forecast horizons is demonstrated. When...

This paper is concerned with a generalization of classical inventory models (with fixed ordering costs) that exhibit (s, S) policies. In our model, the distribution of demands in successive periods is dependent on a Markov chain. The model includes the case of cyclic or seasonal demand. The...

Recently, the production control problem in stochastic manufacturing systems has generated a great deal of interest. The goal is to obtain production rates to minimize total expected surplus and production cost. This paper reviews the research devoted to minimum average cost production planning...

This paper is concerned with a periodic-review inventory system with three consecutive delivery modes (fast, medium, and slow) and demand forecast updates. At the beginning of each period, the inventory level and demand information are updated and decisions on how much to order using each of the...

We consider a production planning problem in a two-machine flowshop subject to breakdown and repair of machines and subject to nonnegativity and upper bound constraints on work-in-process. The objective is to choose machine production rates over time to minimize the long-run average...

We present a classified bibliography of the literature in the area of forecast, solution, and rolling horizons primarily in operations management problems. Each one of over 200 selected papers is categorized on five dimensions that identify the horizon type, the model type (deterministic or...

This paper compares for production control policies in terms of their robustness against random disturbance such as machine failures and demand fluctuations. A simulation model based on a VLSI wafer fabrication facility is used to test the performance of the policies. Several criteria including...

This paper presents an asymptotic analysis of hierarchical production planning in a manufacturing system with two tandem machines that are subject to breakdown and repair. The buffer between the two machines is assumed finite. Therefore, the number of parts in that buffer needs to be...