Article ID: | iaor200164 |
Country: | United Kingdom |
Volume: | 20 |
Issue: | 1 |
Start Page Number: | 1 |
End Page Number: | 20 |
Publication Date: | Jan 1999 |
Journal: | Optimal Control Applications & Methods |
Authors: | Boukas E.K., Andijani A., Shi P. |
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.