Der Einfluß der Lagerkosten auf die Produktionsanpassung bei zyklischem Absatz. Eine kontrolltheoretische Analyse. (The influence of inventory costs on the production policy under cyclical demand. A control theoretic analysis) (Q1069847): Difference between revisions

We consider a production-inventory model with cyclical demand. Production causes monotonically increasing convex costs, whereas inventory costs are linear. The problem of determining the optimal production policy is formulated as a problem of optimal control with state constraints (lower and upper bounds). We solve the problem by applying the maximum principle and deduce a fundamental equation of intertemporal equilibrium for production and inventory costs. Further conditions are given for the relation between the shape of cyclical demand and the shape of the trajectory of inventory. The solution of the problem with discounted objective function shows similar characteristics. The optimization of the problem with an intermediate product implies different policies for the two stages of production, depending on the degree of completion of the intermediate product. The numerical solution of an example with parametrically varying unit costs of inventory is given.