Analysis of the part selection policy in the case of a flexible manufacturing cell producing different parts for several emanating lines is presented. The discrete response control problem is formulated as an undiscounted semi-Markovian decision problem whose decision epochs occur when the cell completes a part and must decide what type of part to fabricate next. Design objective is to minimize the expected shortage penalty per unit time incurred by the production lines when they run out of inputs. Optimal production policies are characterized, and a discussion of related industrial implementation issues is given.
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Seidmann et al. (1984) studied this question.
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