Abstract: In this paper we discuss the approach to model a real-time control system for a two part type, two machine, two buffer manufacturing system with finite set-up change times for machines. The environment is stochastic due to random machine breakdown and repair times. A four level hierarchical structure is used for this purpose. The objective is to minimize the work- in-process inventory while satisfying the demand. The demand rate is considered to be piece-wise constant. Simulations are made on the system to study its performance.!9
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