Dynamic scheduling of a multi-items production operating on a make-to-stock basis

The concept of priority indices defined to discuss the Restless Bandit Problem (RBP) furnish a relevant approximative framework to approach the optimal scheduling of a multi-products make-to-stock production when no setup cost and/or time are incurred. The resulting policy involves switching curves and hedging stocks. At each time, the index policy selects the item to be produced for any global state of the net inventories. Moreover, the optimal hedging level is also reproduced for a single item problem.