Stochastic Optimal Control Of Ato Systems With Batch Arrivals Via Diffusion Approximation

Authors:
Wanyang Dai;Qian Jiang
Affiliations:
Department of Mathematics Nanjing University Nanjing 210093 People's Republic of China E-mail: nan5lu8@netra.nju.edu.cn;Department of Mathematics Nanjing University Nanjing 210093 People's Republic of China E-mail: nan5lu8@netra.nju.edu.cn
Venue:
Probability in the Engineering and Informational Sciences
Year:
2007

Citing 4
Cited 0

Theory of linear and integer programming

Theory of linear and integer programming
Diffusion approximations for open multiclass queueing networks: sufficient conditions involving state space collapse

Queueing Systems: Theory and Applications
A heavy traffic limit theorem for a class of open queueing networks with finite buffers

Queueing Systems: Theory and Applications
Optimal Control of a High-Volume Assemble-to-Order System

Mathematics of Operations Research

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Abstract

We study the stochastic optimal control for an assemble-to-order system with multiple products and components that arrive at the system in random batches and according to renewal reward processes. Our purpose is to maximize expected infinite-horizon discounted profit by selecting product prices, component production rates, and a dynamic sequencing rule for assembly. We refine the solution of some static planning problem and a discrete review policy to batch arrival environment and develop an asymptotically optimal policy for the system operating under heavy traffic, which indicates that the system can be approximated by a diffusion process and exhibits a state space collapse property.