Optimal production control in stochastic manufacturing systems with degenerate demand
The paper studies the production inventory problem of minimizing the expected discounted present value of production cost control in manufacturing systems with degenerate stochastic demand.We have developed the optimal inventory production control problem by deriving the dynamics of the inventory-de...
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my.uum.repo.128572014-12-18T06:53:16Z http://repo.uum.edu.my/12857/ Optimal production control in stochastic manufacturing systems with degenerate demand Baten, Md Azizul Kamil, Anton Abdulbasah QA Mathematics The paper studies the production inventory problem of minimizing the expected discounted present value of production cost control in manufacturing systems with degenerate stochastic demand.We have developed the optimal inventory production control problem by deriving the dynamics of the inventory-demand ratio that evolves according to a stochastic neoclassical differential equation through Ito’s Lemma.We have also established the Riccati based solution of the reduced (one- dimensional) HJB equation corresponding to production inventory control problem through the technique of dynamic programming principle. Finally, the optimal control is shown to exist from the optimality conditions in the HJB equation. Global Science Press 2011-02 Article PeerReviewed Baten, Md Azizul and Kamil, Anton Abdulbasah (2011) Optimal production control in stochastic manufacturing systems with degenerate demand. East Asian Journal on Applied Mathematics, 1 (1). pp. 89-96. ISSN 20797362 http://dx.doi.org/10.4208/eajam.190609.190510a doi:10.4208/eajam.190609.190510a |
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QA Mathematics Baten, Md Azizul Kamil, Anton Abdulbasah Optimal production control in stochastic manufacturing systems with degenerate demand |
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The paper studies the production inventory problem of minimizing the expected discounted present value of production cost control in manufacturing systems with degenerate stochastic demand.We have developed the optimal inventory production control problem by deriving the dynamics of the inventory-demand ratio that evolves according to a stochastic neoclassical differential equation through Ito’s Lemma.We have also established the Riccati based solution of the reduced (one- dimensional) HJB equation corresponding to production inventory control problem through the technique of dynamic programming principle. Finally, the optimal control is shown to exist
from the optimality conditions in the HJB equation. |
format |
Article |
author |
Baten, Md Azizul Kamil, Anton Abdulbasah |
author_facet |
Baten, Md Azizul Kamil, Anton Abdulbasah |
author_sort |
Baten, Md Azizul |
title |
Optimal production control in stochastic manufacturing systems with degenerate demand |
title_short |
Optimal production control in stochastic manufacturing systems with degenerate demand |
title_full |
Optimal production control in stochastic manufacturing systems with degenerate demand |
title_fullStr |
Optimal production control in stochastic manufacturing systems with degenerate demand |
title_full_unstemmed |
Optimal production control in stochastic manufacturing systems with degenerate demand |
title_sort |
optimal production control in stochastic manufacturing systems with degenerate demand |
publisher |
Global Science Press |
publishDate |
2011 |
url |
http://repo.uum.edu.my/12857/ http://dx.doi.org/10.4208/eajam.190609.190510a |
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1644281019656830976 |
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13.18916 |