A MARKOV DECISION PROCESS WITH COSTLY INSPECTION.

Abstract

A simple production process which has only two states in which production is possible, and two other states in which no production can take place is studied. The items produced are classified as either acceptable or defective. Costs are associated with producing defective items, inspecting items and repairing the process. Immediately after repair, and only then, is the process state known. An optimal control rule, which tells when to inspect items and when to repair the machinery, based on the past history of the process is sought. The problem in which inspection costs are nil, and hence 100% inspection is used, has been studied by Girshick and Rubin. When the process satisfies certain conditions, an optimal control rule is characterized, and a method for obtaining the rule is presented. Several other methods are given which produce almost optimal solutions when these conditions are violated. (Author)

Document Details

Document Type
Technical Report
Publication Date
Jan 15, 1968
Accession Number
AD0664456

Entities

People

  • Stephen M. Tafeen

Organizations

  • Stanford University

Tags

DTIC Thesaurus Topics

  • Inspection

Readers

  • Logistics and Supply Chain Management.
  • Mathematical Modeling and Probability Theory.
  • Regression Analysis.