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An Optimal control approach to marketing‐production planning
Author(s) -
Abad Prakash L.
Publication year - 1982
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/oca.4660030101
Subject(s) - production (economics) , optimal control , control (management) , production planning , mathematical optimization , parametric statistics , computer science , production control , economics , mathematics , microeconomics , artificial intelligence , statistics
The problem of finding an optimal advertising and production policy in a firm is analysed using a recently proposed model of a marketing‐production system. First, it is shown that the optimal control problem underlying the proposed model is a partially singular control problem. Then, a reverse‐time parametric solution procedure is designed to determine the optimal advertising and production policy for the proposed model. Finally, it is shown that the results derived from the new model are applicable to problems of capacity expansion in a firm.