A Production System with Random Yieldand Equipment Deterioration: Single Period

摘要

We consider the problem of determining production quantities for a single-product production system with randomyield and equipment deterioration. Units are processed on a single machine with renewal but no catastrophic failure.At the beginning of each period, we observe the equipment condition and the net inventory level and make twodecisions: whether or not to repair the machine and how many units to produce. If we choose to repair, the machineinstantaneously returns to good-as-new condition. Items are produced instantaneously and used to fill the demand atthe beginning of each period. Unsatisfied demand is backlogged. We assume that the yield (output) follows abinomial distribution, where the probability of generating a good output from one unit of input is a function of thecumulative units produced since last renewal.