A Robust Production Control Policy for Hedging Against Inventory Inaccuracy in a Multiple-Stage Production System With Time Delay

Zheng Wang, Tung Sun Chan, Ming Li

Research output: Journal article publicationJournal articleAcademic researchpeer-review

3 Citations (Scopus)


Inventory inaccuracy has significant negative impact on the performance of production control. In this paper, we investigate the robust production control problem for a multiple-stage production system with inventory inaccuracy and time delay between stages. The objective of this problem is to minimize the average production cost. The problem is solved in two steps. First, an approximate optimal production control policy is developed for a multiple-stage production system with time delay but without inventory inaccuracy. Second, we reveal that the discontinuity of the controls makes the policy sensitive to the error of inventory data, and then propose a robust production control policy to eliminate this sensitivity, in which the control variables change smoothly when state variables cross boundaries between different domains in the state space. We also prove that the robustness of the proposed robust policy is better than that of the approximate optimal policy. Finally, numerical experiments are conducted to examine the performance of the proposed robust policy for hedging against inventory inaccuracy.

Original languageEnglish
Pages (from-to)474-486
Number of pages13
JournalIEEE Transactions on Engineering Management
Issue number3
Publication statusPublished - 1 Aug 2018


  • Delay effects
  • Inventory control
  • Inventory inaccuracy
  • optimal production control
  • Production control
  • Production systems
  • robust production control
  • Robustness
  • Uncertainty

ASJC Scopus subject areas

  • Strategy and Management
  • Electrical and Electronic Engineering

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