We consider the production/inventory control for a recoverable system with stochastic demand and returns where stock is replenished by manufacturing new items or remanufacturing returned items. The optimal control policy found by solving a Markov decision process (MDP) for a given problem...

This paper presents a discrete time model of a multi-stage production system that faces two major types of uncertainties: the output rate at each production stage and the demand for the finished product. Our goal is to analyze the impact of these uncertainties on the production level and on the...