OPTIMAL CONTROL IN DETERMINISTIC INVENTORY MODELS
Abstract
The use of Pontryagin's Maximum Principle in analyses of deterministic inventory models requires less restrictive assumptions about the nature of order policies than can be allowed when only the differential calculus is used. Two analyses are presented to illustrate this fact. The first involves a periodic review model with no shortages allowed. The production and holding cost functions were kept as general as possible. The second analysis involves a periodic review model with shortages allowed and linear production and inventory costs. As would be expected, the optimal order policies obtained are more general than those obtained in the past.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 23, 1970
- Accession Number
- AD0704505
Entities
People
- Alan W. Mcmasters
Organizations
- Naval Postgraduate School