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Manufacturing High-Tech Products Subject to Rapid Obsolescence

Author

Listed:
  • Luca Grosset

    (University of Padova)

  • Bruno Viscolani

    (University of Padova)

Abstract

We formulate a production problem in high-tech industry as a free-final-time optimal control problem. The instance with linear production cost is equivalent to a problem proposed by Pangburn and Sundaresan. The instance with quadratic production cost allows us to find a solution which is closer to what is seen in the real world. In the latter instance, the optimal production rate is strictly decreasing in a neighborhood of the final time.

Suggested Citation

  • Luca Grosset & Bruno Viscolani, 2016. "Manufacturing High-Tech Products Subject to Rapid Obsolescence," Journal of Optimization Theory and Applications, Springer, vol. 170(3), pages 993-1008, September.
    • Handle: RePEc:spr:joptap:v:170:y:2016:i:3:d:10.1007_s10957-016-0928-8
    DOI: 10.1007/s10957-016-0928-8
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    References listed on IDEAS

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