Production control in a complex production system using approximate dynamic programming

Abstract

Development of an efficient production and inventory control policy for a production system with multiple working stations, intermediate components and end products is difficult. In particular, uncertain demand and large changeover times at the work stations cause significant problems. In this paper, we consider an assembly line for dishwashers which require multiple types of wire racks that must be fabricated and coated at different work centres before supplying the assembly lines. An approximate dynamic programming (ADP) method is proposed to address the complexities associated with such a system. In addition, an Artificial Neural Network model is designed to approximate state values of the system, thus helping the system to make decisions at particular states. A near optimal production and inventory control policy is developed through an ADP algorithm. The proposed method can be extended to any similar system.