A Heuristic Scheduling Policy for Multi-Item, Single-Machine Production Systems with Time-Varying, Stochastic Demands

A heuristic scheduling policy is introduced for multi-item, single-machine production systems facing stochastic, time-varying demands. The policy, which we term the dynamic cycle lengths heuristic, integrates feedback control based on the monitoring of inventory levels with the maintenance of economic production cycles. The policy is applied time period by time period to make decisions concerning which items to produce in what quantities during the next time period. These quantities reflect production cycles revised each time period in response to differences between projected and actual inventory levels and in response to changes in demand rates. We extend the basic scheduling policy in order to integrate its use with tactical planning. We also discuss the results of simulation tests of the heuristic against other scheduling policies.