Optimal production control of a manufacturing-remanufacturing system with delivery activity

This work considers a manufacturing- remanufacturing system composed of two parallel machines, a manufacturing inventory, a purchase warehouse, a recovery inventory and customers who demand a constant quantity of product. Stochastic fluid model is adopted to describe the system and to take into account: machine failure, returned products, remanufacturing products and delivery activity. the objective of this paper is to establish an optimal production control which allows minimizing the sum of inventory, transportation and lost sales costs. Perturbation analysis is applied to the stochastic fluid model to determine the optimal manufacturing inventory level that describes the optimal production control, the trajectories of the manufacturing inventory level are studied and the perturbation analysis estimates are evaluated, The unbiasedness of these estimates is proved and Wen they are implemented in an optimization algorithm which determines the optimal manufacturing inventory in the presence of returned products and delivery time. (C) 2016, IFAG (international Federation of Automatic Control) Hosting lay Elsevier Ltd. All rights reserved.