Title: Stochastic approximations for optimal buffer capacity of many-station production lines

Authors: J.K. Cochran, A. Kokangul, T.A. Khaniyev

Addresses: Department of Operational Sciences (AFIT/ENS), Air Force Institute of Technology, 2950 Hobson Way, Wright-Patterson AFB, OH 454337765, USA. ' Faculty of Engineering and Architecture, Department of Industrial Engineering, Cukurova University, Adana 01330, Turkey. ' Faculty of Engineering, Department of Industrial Engineering, TOBB University of Economics and Technology, Ankara 06560, Turkey

Abstract: Probabilistic processing times, times between breakdowns and repair times make the amount of stock in buffers between stations in production lines behave as a stochastic process. Too much or too little buffer stock reduces system economy and efficiency, respectively. We obtain optimum buffer capacities and initial stock levels for production lines employing a mathematical random walk approach based on the maximum and minimum values of a stochastic process in a time window. Two approximations are developed, each useful under different risk-acceptance assumptions. Simulation results populate the equations. A motivating case study from a discrete part manufacturing line, including an example of using regression on the simulated results, is presented.

Keywords: buffer size; many-station production lines; maximum; minimum; stochastic approximations; optimisation; buffer capacity; random walk; risk acceptance; simulation; discrete parts manufacturing; regression.

DOI: 10.1504/IJMOR.2009.022882

International Journal of Mathematics in Operational Research, 2009 Vol.1 No.1/2, pp.211 - 227

Published online: 31 Jan 2009 *

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