OPTIMAL CONTROL OF A PRODUCTION SYSTEM WITH INVENTORY-LEVEL-DEPENDENT DEMAND ∗

Messaoud Bounkhel · Lotfi Tadj · Yacine Benhadid

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Supply Chain and Inventory Management Management and Optimization Techniques Optimization and Mathematical Programming

Abstract

Two production systems with inventory-level-dependent demand are considered and Pontryagin maximum principle is used to determine the optimal control. 1

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References

2001Recent trends in modeling of deteriorating inventory 1952On the Application of Servomechanism Theory in the Study of Production Control 2003Economic production quantity models for deteriorating items with price- and stock-dependent demand 1998Deterministic models of perishable inventory with stock-dependent demand rate and nonlinear holding cost 2002Optimal control approach to production systems with inventory-level-dependent demand 2003An algorithm for an inventory model with inventory-level-dependent demand rate 2000Optimal control of a simple manufacturing system with restarting costs

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