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Production Planning for a Stochastic Demand Process.
- Source :
- Operations Research; Jul/Aug74, Vol. 22 Issue 4, p771, 17p
- Publication Year :
- 1974
-
Abstract
- This paper deals with planning production of a single good over a prescribed finite interval of time [0, T]. The costs considered within the problem are production and holding costs; holding costs are incurred for negative inventory (caused by backlogged sales) and positive inventory (caused by production in excess of demand). The demand for the product is treated as a stochastic process. Problem formulation and optimization use tools from continuous-time stochastic variational calculus and control theory. Among its results, the paper proves the uniqueness of the optimal solution and provides an algorithm for the problem. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 0030364X
- Volume :
- 22
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- Operations Research
- Publication Type :
- Academic Journal
- Accession number :
- 6664574
- Full Text :
- https://doi.org/10.1287/opre.22.4.771