APPLICATIONS OF MATHEMATICAL CONTROL THEORY TO ACCOUNTING AND BUDGETING: II. THE CONTINUOUS JOINT TRADING MADEL.
Abstract
The paper applies the mathematical control theory to the accounting network flows, where the flow rates are constrained by linear inequalities. The optimal control policy is of the 'generalized bang-bang' variety which is obtained by solving at each instant in time a linear programming problem whose objective function parameters are determined by the 'switching function' which is derived from the Hamiltonian function. The interpretation of the adjoint variables of the control problem and the dual evaluators of the linear programming problem demonstrates an interesting interaction of the cross section phase of the problem, which is characterized by linear programming, and the dynamic phase of the problem, which is characterized by control theory. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1969
- Accession Number
- AD0693436
Entities
People
- Gerald L. Thompson
- Yuki Ijiri
Organizations
- Carnegie Mellon University