Optimal control of a SOM system with demands for product and PSS

Abstract

In this paper, we address the problem of optimal control in a service-oriented manufacturing (SOM) system. The optimal dynamic admission control of the product orders and the optimal dynamic production control of products are examined simultaneously. We formulate the integrated optimal control problem as a continuous Markov decision process. and characterize the integrated optimal dynamic control by two monotonic switching curves. The optimal control policy highlights the coordination between the controls of manufacturing subsystem and service subsystem in the SOM system. We also illustrate the impacts of the revenues of both product orders and PSS orders on the optimal policy numerically.