APPLICATIONS OF MATHEMATICAL CONTROL THEORY TO ACCOUNTING AND BUDGETING. I. THE CONTINUOUS WHEAT TRADING MODEL

Abstract

A brief introduction to continuous mathematical control theory is presented. A model having two state variable accounts, cash and wheat, is defined by means of differential equations. Adjoint functions, the Hamiltonian function, and the optimum (bang-bang) policy are derived. Interpretations of the Hamiltonian and switching functions and a numerical example are given. The results are extended to the case where transaction costs and spoilage costs are incurred.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1969
Accession Number
AD0684079

Entities

People

  • Gerald L. Thompson
  • Yuji Ijiri

Organizations

  • Carnegie Mellon University

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Accounting
  • Analog Computers
  • Boundary Value Problems
  • Calculus Of Variations
  • Computational Science
  • Computer Programming
  • Computers
  • Control Theory
  • Differential Equations
  • Digital Computers
  • Equations
  • Hamiltonian Functions
  • Inventory
  • Linear Programming
  • Military Research
  • Models
  • Time Intervals

Fields of Study

  • Mathematics

Readers

  • Calculus or Mathematical Analysis
  • Defense Financial Management and Audit.
  • Military/Explosive Ordnance Disposal (EOD) Technology