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 the optimal production planning in a dynamic stochastic manufacturing system consisting of a single machine that is failure prone and facing a constant demand. The objective is to choose the rate of production over time in order to minimize the long-run average cost...

This paper is concernced with hierarchical decisions regarding production and investment in capacity in manufacturing systems with production subject to breakdown and repair. The production capacity can be increased by investing continuously in new capacity which is available upon completion....

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...

We deal with a single or parallel machine manufacturing system with convex cost of holding and backlogging and develop a new rigorous analysis to address the problem. We provide the results needed for the vanishing discount approach used for aour analysis. In particular, we show that one can go...

We consider two control problems on a finite horizon; one stochastic and the other deterministic. In both problems the running cost and the terminal cost are the same. The controllable input in both problems is of an additive nature with cost proportional to the input (which can be both positive...

We address the problem of finding an optimal financing mix of retained earnings and external equity for maximizing the value of a firm subject to random returns. The problem is formulated as a singular stochastic control for a diffusion process, and the value function satisfies a free-boundary...

An asymptotic analysis of a hierarchical manufacturing system with machines subject to breakdown and repair is presented. The machine fluctuations are much faster than the accumulation and discounting of costs, and this gives rise to a limiting problem in which the stochastic machine...

We consider a problem of controlling the production rate of a single machine, single product, stochastic manufacturing system in order to minimize the total discounted inventory /backlog costs. The demand has two components: one is deterministic with constant rate d and the other is stochastic...