Optimal advertisement-innovation mix for maximizing the discounted flow of profit

Due to boom in telecommunications market, there is hectic competition among the cellular handset manufacturers. As cellular manufacturing industry operates in an oligopoly framework, often price-rigidity leads to non-price wars. The handset manufacturing firms indulge in product innovation and also advertise their products in order to achieve their objective of maximizing discounted flow of profit. It is of interest to see what would be the optimal advertisement-innovation mix that would maximize the discounted How of profit for the firms. We used differential game theory to solve this problem. We adopted the open-loop solution methodology. We experimented for various scenarios over a 30 period horizon and derived interesting managerial insights.

A mathematical programming approach to optimal Markovian switching of Poisson arrival streams to queueing systems

Motivated by certain situations in manufacturing systems and communication networks, we look into the problem of maximizing the profit in a queueing system with linear reward and cost structure and having a choice of selecting the streams of Poisson arrivals according to an independent Markov chain. We view the system as a MMPP/GI/1 queue and seek to maximize the profits by optimally choosing the stationary probabilities of the modulating Markov chain. We consider two formulations of the optimization problem. The first one (which we call the PUT problem) seeks to maximize the profit per unit time whereas the second one considers the maximization of the profit per accepted customer (the PAC problem). In each of these formulations, we explore three separate problems. In the first one, the constraints come from bounding the utilization of an infinite capacity server; in the second one the constraints arise from bounding the mean queue length of the same queue; and in the third one the finite capacity of the buffer reflect as a set of constraints. In the problems bounding the utilization factor of the queue, the solutions are given by essentially linear programs, while the problems with mean queue length constraints are linear programs if the service is exponentially distributed. The problems modeling the finite capacity queue are non-convex programs for which global maxima can be found. There is a rich relationship between the solutions of the PUT and PAC problems. In particular, the PUT solutions always make the server work at a utilization factor that is no less than that of the PAC solutions.

Information and Decision Technologies

Production scheduling in a flexible manufacturing system (FMS) is a real-time combinatorial optimization problem that has been proved to be NP-complete. Solving this problem needs on-line monitoring of plan execution and requires real-time decision-making in selecting alternative routings, assigning required resources, and rescheduling when failures occur in the system. Expert systems provide a natural framework for solving this kind of NP-complete problems.In this paper an expert system with a novel parallel heuristic approach is implemented for automatic short-term dynamic scheduling of FMS. The principal features of the expert system presented in this paper include easy rescheduling, on-line plan execution, load balancing, an on-line garbage collection process, and the use of advanced knowledge representational schemes. Its effectiveness is demonstrated with two examples.

Minimizing total completion time on batch processing machines

We study the problem of minimizing total completion time on single and parallel batch processing machines. A batch processing machine is one which can process up to B jobs simultaneously. The processing time of a batch is equal to the largest processing time among all jobs in the batch. This problem is motivated by burn-in operations in the final testing stage of semiconductor manufacturing and is expected to occur in other production environments. We provide an exact solution procedure for the single-machine problem and heuristic algorithms for both single and parallel machine problems. While the exact algorithms have limited applicability due to high computational requirements, extensive experiments show that the heuristics are capable of consistently obtaining near-optimal solutions in very reasonable CPU times.

Heuristic algorithms for scheduling of a batch processor in automobile gear manufacturing

In this paper we address a scheduling problem for minimising total weighted tardiness. The motivation for the paper comes from the automobile gear manufacturing process. We consider the bottleneck operation of heat treatment stage of gear manufacturing. Real life scenarios like unequal release times, incompatible job families, non-identical job sizes and allowance for job splitting have been considered. A mathematical model taking into account dynamic starting conditions has been developed. Due to the NP-hard nature of the problem, a few heuristic algorithms have been proposed. The performance of the proposed heuristic algorithms is evaluated: (a) in comparison with optimal solution for small size problem instances, and (b) in comparison with `estimated optimal solution' for large size problem instances. Extensive computational analyses reveal that the proposed heuristic algorithms are capable of consistently obtaining near-optimal solutions (that is, statistically estimated one) in very reasonable computational time.

Performability Analysis of Fork-Join Queueing Systems

Fork-join queueing systems offer a natural modelling paradigm for parallel processing systems and for assembly operations in automated manufacturing. The analysis of fork-join queueing systems has been an important subject of research in recent years. Existing analysis methodologies-both exact and approximate-assume that the servers are failure-free. In this study, we consider fork-join queueing systems in the presence of server failures and compute the cumulative distribution of performability with respect to the response time of such systems. For this, we employ a computational methodology that uses a recent technique based on randomization. We compare the performability of three different fork-join queueing models proposed in the literature: the distributed model, the centralized splitting model, and the split-merge model. The numerical results show that the centralized splitting model offers the highest levels of performability, followed by the distributed splitting and split-merge models.

Structured systems methodology for evaluation of random interruptions in continuous process type manufacturing systems

A structured systems methodology was developed to analyse the problems of production interruptions occurring at random intervals in continuous process type manufacturing systems. At a macro level the methodology focuses on identifying suitable investment policies to reduce interruptions of a total manufacturing system that is a combination of several process plants. An interruption-tree-based simulation model was developed for macroanalysis. At a micro level the methodology focuses on finding the effects of alternative configurations of individual process plants on the overall system performance. A Markov simulation model was developed for microlevel analysis. The methodology was tested with an industry-specific application.

Machine-tool selection and operation allocation in FMS: solving a fuzzy goal-programming model using a genetic algorithm

The decision-making process for machine-tool selection and operation allocation in a flexible manufacturing system (FMS) usually involves multiple conflicting objectives. Thus, a fuzzy goal-programming model can be effectively applied to this decision problem. The paper addresses application of a fuzzy goal-programming concept to model the problem of machine-tool selection and operation allocation with explicit considerations given to objectives of minimizing the total cost of machining operation, material handling and set-up. The constraints pertaining to the capacity of machines, tool magazine and tool life are included in the model. A genetic algorithm (GA)-based approach is adopted to optimize this fuzzy goal-programming model. An illustrative example is provided and some results of computational experiments are reported.

Topology Optimization of Micromachined Structures with the Manufacturing Constraints of KOH Etching of (110) Silicon

The focus of this paper is on designing useful compliant micro-mechanisms of high-aspect-ratio which can be microfabricated by the cost-effective wet etching of (110) orientation silicon (Si) wafers. Wet etching of (110) Si imposes constraints on the geometry of the realized mechanisms because it allows only etch-through in the form of slots parallel to the wafer's flat with a certain minimum length. In this paper, we incorporate this constraint in the topology optimization and obtain compliant designs that meet the specifications on the desired motion for given input forces. Using this design technique and wet etching, we show that we can realize high-aspect-ratio compliant micro-mechanisms. For a (110) Si wafer of 250 µm thickness, the minimum length of the etch opening to get a slot is found to be 866 µm. The minimum achievable width of the slot is limited by the resolution of the lithography process and this can be a very small value. This is studied by conducting trials with different mask layouts on a (110) Si wafer. These constraints are taken care of by using a suitable design parameterization rather than by imposing the constraints explicitly. Topology optimization, as is well known, gives designs using only the essential design specifications. In this work, we show that our technique also gives manufacturable mechanism designs along with lithography mask layouts. Some designs obtained are transferred to lithography masks and mechanisms are fabricated on (110) Si wafers.