Premium
Robust inventory‐production control problem with stochastic demand
Author(s) -
Boukas E. K.,
Shi P.,
Andijani A.
Publication year - 1999
Publication title -
optimal control applications and methods
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.458
H-Index - 44
eISSN - 1099-1514
pISSN - 0143-2087
DOI - 10.1002/(sici)1099-1514(199901/02)20:1<1::aid-oca642>3.0.co;2-l
Subject(s) - stochastic control , optimal control , inventory control , control (management) , mathematical optimization , production (economics) , set (abstract data type) , linear quadratic regulator , production control , jump , economics , computer science , mathematics , mathematical economics , operations research , microeconomics , management , programming language , physics , quantum mechanics
This paper deals with the inventory‐production control problem where the produced items are supposed to be deteriorating with a rate that depends on the stochastic demand rate. The inventory‐production control problem is formulated as a jump linear quadratic control problem. The optimal policy that solves the optimal control problem is obtained in terms of a set of coupled Riccati equations. The guaranteed cost control problem is also investigated. Copyright © 1999 John Wiley & Sons, Ltd.