Asymptotically Optimal Control of Make-to-Stock Systems
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AbstractWe consider multiclass make-to-stock production/inventory systems in which the manager makes three decisions, including pricing, outsourcing, and scheduling, to maximize the long-run average profit. For a sequence of systems in the heavy-traffic regime, with linear or strictly convex holding/waiting cost functions, we propose a sequence of policies and establish its asymptotic optimality. Our proof combines the lower bound approach and a thorough steady-state analysis of the systems. We also establish general results on the existence and tightness of the stationary distributions of the state processes under a more general family of policies.
Acceptance Date24/04/2023
All Author(s) ListXuefeng Gao, Junfei Huang
Journal nameMathematics of Operations Research
Year2024
Month5
Volume Number49
Issue Number2
PublisherINFORMS
Place of PublicationUnited States
Pages948 - 985
ISSN0364-765X
eISSN1526-5471
LanguagesEnglish-United States
