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Multiproduct systems with both setup times and costs: Fluid bounds and schedules
 Operations Research
, 2004
"... This paper considers a multiproduct, singleserver production system where both setup times and costs are incurred whenever the server changes product. The system is maketoorder with a per unit backlogging cost. The objective is to minimize the longrun average cost per unit time. Using a fluid m ..."
Abstract

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This paper considers a multiproduct, singleserver production system where both setup times and costs are incurred whenever the server changes product. The system is maketoorder with a per unit backlogging cost. The objective is to minimize the longrun average cost per unit time. Using a fluid model, we provide a closedform lower bound on system performance. This bound is also shown to provide a lower bound for stochastic systems when scheduling is static, but is only an approximation when scheduling is dynamic. Heavytraffic analysis yields a refined bound that includes secondmoment terms. The fluid bound suggests both dynamic and static scheduling In this paper we consider a production environment where a number of different products are produced on a single machine and setup activities are necessary when switches of product type are made. These setup activities require both time and cost that depend on the specific product type. Throughout the paper we assume that the setups do not depend on the previous product produced