Optimum Inventory and Product Quality Control with Deterministic and Stochastic Deterioration—An Application of Distributed Parameters Control Systems

Alain Bensoussan; Georges Nissen; Charles S. Tapiero; Charles S. Tapiero

doi:10.1109/TAC.1975.1100980

Optimum Inventory and Product Quality Control with Deterministic and Stochastic Deterioration—An Application of Distributed Parameters Control Systems

Alain Bensoussan, Georges Nissen, Charles S. Tapiero, Charles S. Tapiero

Finance and Risk Engineering

Research output: Contribution to journal › Article › peer-review

Abstract

Inventory models with deterministic and stochastic deterioration rates are given. The first model, assuming deterministic deterioration rates, is a hyperbolic equation while the second one assuming a stochastic deterioration rate is reduced to a parabolic equation of the second order. Optimization of these in inventory models when costs are quadratic yields linear feedback replenishment policies. This short paper provides an analytic solution to both problems. The importance of such inventory models is to be found when the demand and value of stored products is also dependent on their quality.

Original language	English (US)
Pages (from-to)	407-412
Number of pages	6
Journal	IEEE Transactions on Automatic Control
Volume	20
Issue number	3
DOIs	https://doi.org/10.1109/TAC.1975.1100980
State	Published - Jun 1975

ASJC Scopus subject areas

Control and Systems Engineering
Computer Science Applications
Electrical and Electronic Engineering

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10.1109/TAC.1975.1100980

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abstract = "Inventory models with deterministic and stochastic deterioration rates are given. The first model, assuming deterministic deterioration rates, is a hyperbolic equation while the second one assuming a stochastic deterioration rate is reduced to a parabolic equation of the second order. Optimization of these in inventory models when costs are quadratic yields linear feedback replenishment policies. This short paper provides an analytic solution to both problems. The importance of such inventory models is to be found when the demand and value of stored products is also dependent on their quality.",

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Optimum Inventory and Product Quality Control with Deterministic and Stochastic Deterioration—An Application of Distributed Parameters Control Systems

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