Inventory and order admission control in manufacturing systems with two customer classes and setup times

Abstract

In this paper we examine a Markovian singlestage manufacturing system, with setup times producing a single item to satisfy demand of two different customer classes. We investigate numerically the structure of the optimal inventory and order admission control policy. Due to the complexity of the optimal policy a simple heuristic policy is proposed. Numerical results show that the proposed policy can be a very good approximation of the optimal policy.