Application of Optimal Control in Inventory Management of Production

Abstract:

Countering the inventory management problem of manufacturing enterprise, according to the optimal control theory, considering the numbers of products as control variables and the stocks as the state variables, this essay establishes systemic real-time dynamic model, gives the objective function, and makes use of dynamic programming method to solve the optimal control and obtains the optimal inventory, which provides a theoretical foundation for the production and inventory management of manufacturing enterprise.

• Periodical: Applied Mechanics and Materials (Volumes 29-32)
• Pages: 2503-2508
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.29-32.2503
• Online since: August 2010
• Authors: Pei Hong Sun, Lei Tang, Li Ying Tang
• Keywords: Inventory Management, Optimal Control, Supply Chain

References

[1] Zhong Maiying, Tang Bingneng. Research on Electronic Commerce Inventory[J]．Systems Engineering, 2002，17(3)：257-260.

[2] Wu Sen , Xue Qingguo, Gao Xuedong. Study on Production Planning - Inventory Control System.

[3] Zhang he, Zhaogang. Single Point and Multi-product Inventory Control and Simulation [J]. Industrial Engineering, 2005, 8 (6): 99. 103.

[4] Qi Ershi, Zhang ying. Continuous Processing and Inventory Management Based on control theory [J]. Industrial Engineering, 2007, 10 (6) : 10-12.

[5] Zhang Weiquan, Zhang Li. The Applications of Optimal Control Theory in Production Inventory Management System [J]. Industrial Technology & Economy, 1999, 18 (3) : 41-42.

[6] Zhang Jin-shui. Economic Cybernetics - Dynamic Economic System Analysis and Application.

[7] Operational Teaching Materials Writing Group. Operations Research (Third Edition) [M]. Beijing: Tsinghua University Press, (2005).

[8] Hu Shousong, Wang Zhiquan, Hu Weili. Optimal Control Theory and System [M]. 2nd edition. Beijing: Science Press, (2005).