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Solving economic optimal control problems with system dynamics
Author(s) -
Kivijärvi Hannu,
Tuominen Markku
Publication year - 1986
Publication title -
system dynamics review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.491
H-Index - 57
eISSN - 1099-1727
pISSN - 0883-7066
DOI - 10.1002/sdr.4260020204
Subject(s) - computer science , simple (philosophy) , optimal control , control (management) , system dynamics , mathematical optimization , dynamics (music) , production (economics) , management science , operations research , engineering , mathematics , economics , artificial intelligence , philosophy , physics , epistemology , acoustics , macroeconomics
Considering a simple production system, this paper presents an alternative method based on system dynamics for solving economic and managerial optimal control problems. Such an approach can be helpful in cases where the application of the mathematical optimal control theory is impossible or too laborious for planners or decision makers.