| Article ID: | iaor200969134 |
| Country: | United States |
| Volume: | 2009 |
| Publication Date: | Jul 2009 |
| Journal: | Journal of Probability and Statistics |
| Authors: | Kamil Anton Abdulbasah, Baten Azizul |
| Keywords: | programming: dynamic |
The paper studies the production inventory problem of minimizing the expected discounted present value of production cost control in a manufacturing system with degenerate stochastic demand. We establish the existence of a unique solution of the Hamilton-Jacobi-Bellman (HJB) equations associated withthis problem. The optimal control is given by a solution to the corresponding HJB equation.