Seminar: Sinem Özkan, “Control of a Multi-Server Make-to-Stock Production System with Setup Costs”

Control of a Multi-Server Make-to-Stock Production System with Setup Costs

by Sinem Özkan

This study considers production and inventory control problems for an  make-to-stock queue with production setup costs, several customer classes and lost sales. At any system state, production decision is to specify whether to activate new production channels or to continue with the currently active ones. If the decision is to activate new channels, a fixed/setup cost is incurred per channel. At the decision epochs where the system experiences demand from any customer class, the controller should also decide whether to satisfy the arriving demand or to reject it. The literature of the control of make-to-stock queues is extended by considering fixed system costs and multiple servers at the same time. Firstly the structure of the optimal production and rationing policies are characterized and then new/alternative policies that have well-defined structures and are easier to apply are proposed. Numerical and theoretical studies are carried out to assess the performances of the proposed policies. The expected average cost of the optimal policy for  make-to-stock queue is obtained conducting a renewal analysis.

Date-Time: December 04, 2015 – 10.30

Place: F003

Short Bio

Sinem Özkan received her B.Sc. degree from Yaşar University in 2012 and started her graduate studies in 2013. Before she joined the M.Sc. program, she worked one year as a production engineer in a textile company. She is a currently research assistant in the Department of Industrial Engineering at Yaşar University where she has been working since 2013. Her research interests include stochastic modeling, production and inventory systems.