Production Planning and Inventories Optimization : A Backward Approach in the Convex Storage Cost Case
AbstractWe study the deterministic optimization problem of a profit-maximizing firmwhich plans its sales/production schedule. The firm controls both its productionand sales rates and knows the revenue associated to a given level of sales, aswell as its production and storage costs. The revenue and the production cost areassumed to be respectively concave and convex. In , we provide an existence resultand derive some necessary conditions of optimality. Here, we further assumethat the storage cost is convex. This allows us to relate the optimal planningproblem to the study of a backward integro-differential equation, from which weobtain an explicit construction of the optimal plan.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2003-45.
Date of creation: 2003
Date of revision:
Other versions of this item:
- Chazal, Marie & Jouini, Elyès & Tahraoui, Rabah, 2008. "Production planning and inventories optimization: A backward approach in the convex storage cost case," Journal of Mathematical Economics, Elsevier, vol. 44(9-10), pages 997-1023, September.
- Elyès Jouini & Marie Chazal & Rabah Tahraoui, 2007. "Production Planning and Inventories Optimization: A Backward Approach in the Convex Storage Cost Case," Working Papers halshs-00167156, HAL.
- Marie Chazal & Elyès Jouini & Rabah Tahraoui, 2003. "Production Planning and Inventories Optimization : A Backward Approach in the Convex Storage Cost Case," GE, Growth, Math methods 0312002, EconWPA.
- C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
- D9 - Microeconomics - - Intertemporal Choice and Growth
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Feichtinger, Gustav & Hartl, Richard, 1985. "Optimal pricing and production in an inventory model," European Journal of Operational Research, Elsevier, vol. 19(1), pages 45-56, January.
- Tharaoui, Rabah & Chazal, Marie & Jouini, Elyès, 2003. "Production planning and inventories optimization with a general storage cost function," Economics Papers from University Paris Dauphine 123456789/360, Paris Dauphine University.
- Amirteimoori, Alireza & Kordrostami, Sohrab, 2012. "Production planning in data envelopment analysis," International Journal of Production Economics, Elsevier, vol. 140(1), pages 212-218.
- Du, Juan & Liang, Liang & Chen, Yao & Bi, Gong-bing, 2010. "DEA-based production planning," Omega, Elsevier, vol. 38(1-2), pages 105-112, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Florian Sallaberry).
If references are entirely missing, you can add them using this form.