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...

This paper presents an asymptotic analysis of hierarchical production planning in a manufacturing system with serial machines that are subject to breakdown and repair, and with convex costs. The machines capacities are modeled as Markov chains. Since the number of parts in the internal buffers...

This paper considers an infinite horizon stochastic production planning problem with demand assumed to be a continuous-time Markov process. Problems with control (production) and state (inventory) constraints are treated. It is shown that a unique optimal feedback solution exists. This solution...

This paper summarizes the results of its detailed version, which considers optimal infinite horizon stochastic production planning problems with capacity and demand to be finite state Markov chains. Turnpike set concepts are introduced to characterize the optimal inventory levels. It is shown...

This paper presents an asymptotic analysis of hierarchical investment and production decisions in a manufacturing system with machines subject to breakdown and repair. The demand facing the system is assumed to be a given constant. The production capacity can be increased by purchasing a new...

This paper is concerned with hierarchical control of stochastic manufacturing systems with machines whose capacity states are governed by a Markov process dependent on the rates of production. The objective is to choose production rates that minimize the total inventory/shortage and production...

This paper is concerned with the problem of production planning in a flexible manufacturing system consisting of a single or parallel failure-prone machines producing a number of different products. The objective is to choose the rates of production of the various products over time in order to...

This paper is concerned with the problem of production planning in a flexible manufacturing system consisting of a single or parallel failure-prone machines producing a number of different products. The objective is to choose the rates of production of the various products over time in order to...

This paper considers an optimal production planning problem for an infinite horizon stochastic manufacturing system with long-run average cost criterion. The optimal feedback control is characterized by turnpike sets with the aid of viscosity solutions to the dynamic programming equations. The...