Article ID: | iaor19961979 |
Country: | Netherlands |
Volume: | 43 |
Issue: | 1 |
Start Page Number: | 1 |
End Page Number: | 9 |
Publication Date: | May 1996 |
Journal: | International Journal of Production Economics |
Authors: | Dobos Imre |
Keywords: | production |
The production-smoothing problem wth continuous time was first analyzed by Arrow and Karlin. The paper deals with an extension of this model where undertime-overtime and hiring-firing costs are considered. To solve the problem, it applies the Pontryagin’s maximum principle. In the paper a simple forward algorithm is presented which is based on the solution of the optimal control problem.