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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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Main Authors: Baten, Md Azizul, Kamil, Anton Abdulbasah
Format: Article
Published: Global Science Press 2011
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QA Mathematics
Online Access:http://repo.uum.edu.my/12857/
http://dx.doi.org/10.4208/eajam.190609.190510a
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spelling 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
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
topic QA Mathematics
spellingShingle QA Mathematics
Baten, Md Azizul
Kamil, Anton Abdulbasah
Optimal production control in stochastic manufacturing systems with degenerate demand
description 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
_version_ 1644281019656830976
score 13.18916

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