Strong Planning and Forecast Horizons for a Model with Simultaneous Price and Production Decisions.

Abstract

We have solved a general inventory model with simultaneous price and production decisions. Both linear and non-linear (strictly convex) production cost cases are treated. Upper and lower bounds are imposed on state as well as control variables. The problem is solved by using the Lagrangian form of the maximum principle. Strong planning and strong forecast horizons are obtained. These arise when the state variable reaches its upper and lower bound. The existence of these horizons permits the decomposition of the whole problem into a set of smaller problems, which can be solved separately, and their solutions put together to form a complete solution to the problem. Finally, we derive a forward branch and bound algorithm to solve the problem. The algorithm is illustrated with a simple example.

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 1981
Accession Number
ADA104083

Entities

People

  • Gerald L. Thompson
  • Jinn-tsair Teng
  • Suresh P. Sethi

Organizations

  • Carnegie Mellon University

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Algorithms
  • Boundaries
  • Control Theory
  • Dynamic Programming
  • Equations
  • Hamiltonian Functions
  • Intervals
  • Inventory
  • Military Research
  • Production
  • Production Planning
  • Production Rate
  • Steady State
  • Time Intervals
  • Trajectories
  • Universities

Fields of Study

  • Mathematics

Readers

  • Educational Psychology
  • Graph Algorithms and Convex Optimization.
  • Structural Dynamics.