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Production Planning and Inventories Optimization: A Backward Approach in the Convex Storage Cost Case

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Author Info
Elyès Jouini () (CEREMADE - CEntre de REcherches en MAthématiques de la DEcision - CNRS : UMR7534 - Université Paris Dauphine - Paris IX)
Marie Chazal (D-MATH - Department of Mathematics - Eidgenössiche Technische Hochschule Zürich)
Rabah Tahraoui (CEREMADE - CEntre de REcherches en MAthématiques de la DEcision - CNRS : UMR7534 - Université Paris Dauphine - Paris IX)

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Abstract

As in [3], we study the deterministic optimization problem of a profit-maximizing firm which plans its sales/production schedule. The firm knows the revenue associated to a given level of sales, as well as its production and storage costs. The revenue and the production cost are assumed to be respectively concave and convex. Here, we also assume that the storage cost is convex. This allows us to relate the optimal planning problem to the study of an integro-di_erential backward equation, from which we obtainan explicit construction of the optimal plan.

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Paper provided by HAL in its series Working Papers with number halshs-00167156_v1.

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Date of creation: 16 Aug 2007
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Handle: RePEc:hal:wpaper:halshs-00167156_v1

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Related research
Keywords: Production planning; inventory management; integro-dfferential backwardequations.;

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This page was last updated on 2009-12-19.


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