Ergodic control in stochastic manufacturing systems with constant demand (Q1974224): Difference between revisions

The authors are interested in the average-optimal production rate \(p(t)\) of a stochastic manufacturing system, where the inventory level \(x(t)\) follows a stochastic differential equation \(dx(t)= (p(t)- \xi)dt+ dw(t)\), additionally depending on the constant demand rate \(\xi\) and the standard Brownian motion \(w(t)\). The desired results are obtained by studying the associated discounted total cost model and letting the discount rate tend to zero.