Production control with variable speeds and inspection points

The problem of production control with disturbances is introduced. Given the target amount needed, the due date and the amount produced up to a certain inspection point, we have to determine the new production speed and the next inspection point so that the minimal speed will guarantee meeting the target points on time on the average. Two objectives are imbedded in this heuristic algorithm: to minimize the number of inspection points, and to maximize the probability of completing the production on the due date. A stochastic optimization formulation is presented followed by a heuristic solution, a numerical example is given, and simulation results are presented.