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dc.contributor.authorMatoğlu, Melda Örmeci
dc.contributor.authorVate, J. V.
dc.date.accessioned2012-08-24T11:03:15Z
dc.date.available2012-08-24T11:03:15Z
dc.date.issued2011
dc.identifier.issn0030-364X
dc.identifier.urihttp://hdl.handle.net/10679/251
dc.identifier.urihttp://or.journal.informs.org/content/59/2/427.short
dc.descriptionDue to copyright restrictions, the access to the full text of this article is only available via subscription.
dc.description.abstractWe model the problem of managing capacity in a build-to-order environment as a Brownian drift control problem and seek a policy that minimizes the long-term average cost. We assume the controller can, at some cost, shift the processing rate among a finite set of alternatives, for example by adding or removing staff, increasing or reducing the number of shifts, or opening or closing production lines. The controller incurs a cost for capacity per unit time and a delay cost that reflects the opportunity cost of revenue waiting to be recognized or the customer service impacts of delaying delivery of orders. Furthermore, he incurs a cost per unit to reject orders or idle resources as necessary to keep the workload of waiting orders within a prescribed range. We introduce a practical restriction on this problem, called the S-restricted Brownian control problem, and show how to model it via a structured linear program. We demonstrate that an optimal solution to the S-restricted problem can be found among a special class of policies called deterministic nonoverlapping control band policies. These results exploit apparently new relationships between complementary dual solutions and relative value functions that allow us to obtain a lower bound on the average cost of any nonanticipating policy for the problem, even without the S restriction. Under mild assumptions on the cost parameters, we show that our linear programming approach is asymptotically optimal for the unrestricted Brownian control problem in the sense that by appropriately selecting the S-restricted problem, we can ensure its solution is within an arbitrary finite tolerance of a lower bound on the average cost of any nonanticipating policy for the unrestricted Brownian control problem.en_US
dc.language.isoengen_US
dc.publisherInformsen_US
dc.relation.ispartofOperations Research
dc.rightsrestrictedAccess
dc.titleDrift control with changeover costsen_US
dc.typeArticleen_US
dc.peerreviewedyesen_US
dc.publicationstatuspublisheden_US
dc.contributor.departmentÖzyeğin University
dc.contributor.authorID(ORCID 0000-0003-2952-8098 & YÖK ID 124617) Matoğlu, Melda
dc.contributor.ozuauthorMatoğlu, Melda Örmeci
dc.identifier.volume59
dc.identifier.issue2
dc.identifier.startpage427
dc.identifier.endpage439
dc.identifier.wosWOS:000290752200011
dc.identifier.doi10.1287/opre.1100.0868
dc.subject.keywordsInventory/productionen_US
dc.subject.keywordsStochasticen_US
dc.subject.keywordsStochastic model applicationsen_US
dc.identifier.scopusSCOPUS:2-s2.0-79957491163
dc.contributor.authorFemale1
dc.relation.publicationcategoryArticle - International Refereed Journal - Institutional Academic Staff


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