Optimal Production Planning for Manufacturing Systems with Instantaneous Stock-Dependent Demand and Imperfect Yields

We consider an EPL model like manufacturing system in presence of production imperfectness and stock-demand dependence simultaneously. During the production process, the system can evolve from in-control state into out-of-control state at any random time, after which the defective items will be generated likely causing quantity loss. Meanwhile, the market demand rate is instantaneously dependent on the timely holding inventory. The manufacturer has to determine his production run length and cycle time by taking into account possible imperfect production, stock-dependent demand, and inventory holding capacity bound. We empolder a model to capture this problem and develop computational algorithm to solve it. We further conduct numerical studies to validate our model and solving method. Sensitivity analyses are reported to show the effect of parameters on the system performance.