scholarly journals Optimal control policy for a Brownian inventory system with concave ordering cost

2015 ◽  
Vol 52 (4) ◽  
pp. 909-925 ◽  
Author(s):  
Dacheng Yao ◽  
Xiuli Chao ◽  
Jingchen Wu
Keyword(s):  
Optimal Control ◽  
Brownian Motion ◽  
Cost Optimization ◽  
Control Policy ◽  
Optimization Criterion ◽  
Inventory System ◽  
Single Pair ◽  
Normal Density ◽  
Strong Condition ◽  
Demand Distribution

In this paper we consider an inventory system with increasing concave ordering cost and average cost optimization criterion. The demand process is modeled as a Brownian motion. Porteus (1971) studied a discrete-time version of this problem and under the strong condition that the demand distribution belongs to the class of densities that are finite convolutions of uniform and/or exponential densities (note that normal density does not belong to this class), an optimal control policy is a generalized (s, S) policy consisting of a sequence of (si, Si). Using a lower bound approach, we show that an optimal control policy for the Brownian inventory model is determined by a single pair (s, S).

scholarly journals Optimal control policy for a Brownian inventory system with concave ordering cost

2015 ◽  
Vol 52 (04) ◽  
pp. 909-925 ◽  
Author(s):  
Dacheng Yao ◽  
Xiuli Chao ◽  
Jingchen Wu
Keyword(s):  
Optimal Control ◽  
Brownian Motion ◽  
Cost Optimization ◽  
Control Policy ◽  
Optimization Criterion ◽  
Inventory System ◽  
Single Pair ◽  
Normal Density ◽  
Strong Condition ◽  
Demand Distribution

In this paper we consider an inventory system with increasing concave ordering cost and average cost optimization criterion. The demand process is modeled as a Brownian motion. Porteus (1971) studied a discrete-time version of this problem and under the strong condition that the demand distribution belongs to the class of densities that are finite convolutions of uniform and/or exponential densities (note that normal density does not belong to this class), an optimal control policy is a generalized (s, S) policy consisting of a sequence of (si , Si ). Using a lower bound approach, we show that an optimal control policy for the Brownian inventory model is determined by a single pair (s, S).

Optimal Control Policy of an Inventory System with Postponed Demand

2016 ◽  
Vol 50 (1) ◽  
pp. 145-155 ◽  
Author(s):  
P. Chitra Devi ◽  
B. Sivakumar ◽  
A. Krishnamoorthy
Keyword(s):  
Optimal Control ◽  
Control Policy ◽  
Inventory System

OPTIMAL POLICY FOR A PRODUCTION–INVENTORY SYSTEM WITH SETUP COST AND AVERAGE COST CRITERION

2012 ◽  
Vol 26 (4) ◽  
pp. 457-481 ◽  
Author(s):  
Xiuli Chao ◽  
Yifan Xu ◽  
Baimei Yang
Keyword(s):  
Optimal Control ◽  
Optimal Policy ◽  
Production Capacity ◽  
Control Policy ◽  
Inventory System ◽  
Setup Cost ◽  
Inventory Theory ◽  
Cost Rate ◽  
Production Inventory ◽  
Production Inventory System

One of the most fundamental results in inventory theory is the optimality of (s, S) policy for inventory systems with setup cost. This result is established under a key assumption of infinite ordering/production capacity. Several studies have shown that, when the ordering/production capacity is finite, the optimal policy for the inventory system with setup cost is very complicated and indeed, only partial characterization for the optimal policy is possible. In this paper, we consider a continuous review production/inventory system with finite capacity and setup cost. The demand follows a Poisson process and a demand that cannot be satisfied upon arrival is backlogged. We show that the optimal control policy has a very simple structure when the holding/shortage cost rate is quasi-convex. We also develop efficient algorithms to compute the optimal control parameters.

scholarly journals Embodied Energy Optimization of Buttressed Earth-Retaining Walls with Hybrid Simulated Annealing

2021 ◽  
Vol 11 (4) ◽  
pp. 1800
Author(s):  
David Martínez-Muñoz ◽  
José V. Martí ◽  
José García ◽  
Víctor Yepes
Keyword(s):  
Retaining Wall ◽  
Cost Optimization ◽  
Energy Optimization ◽  
Optimization Criterion ◽  
Embodied Energy ◽  
Economic Optimization ◽  
Hybrid Simulated Annealing ◽  
The Difference ◽  
Reduce Emissions ◽  
Geometric Variables

The importance of construction in the consumption of natural resources is leading structural design professionals to create more efficient structure designs that reduce emissions as well as the energy consumed. This paper presents an automated process to obtain low embodied energy buttressed earth-retaining wall optimum designs. Two objective functions were considered to compare the difference between a cost optimization and an embodied energy optimization. To reach the best design for every optimization criterion, a tuning of the algorithm parameters was carried out. This study used a hybrid simulated optimization algorithm to obtain the values of the geometry, the concrete resistances, and the amounts of concrete and materials to obtain an optimum buttressed earth-retaining wall low embodied energy design. The relation between all the geometric variables and the wall height was obtained by adjusting the linear and parabolic functions. A relationship was found between the two optimization criteria, and it can be concluded that cost and energy optimization are linked. This allows us to state that a cost reduction of €1 has an associated energy consumption reduction of 4.54 kWh. To achieve a low embodied energy design, it is recommended to reduce the distance between buttresses with respect to economic optimization. This decrease allows a reduction in the reinforcing steel needed to resist stem bending. The difference between the results of the geometric variables of the foundation for the two-optimization objectives reveals hardly any variation between them. This work gives technicians some rules to get optimum cost and embodied energy design. Furthermore, it compares designs obtained through these two optimization objectives with traditional design recommendations.

scholarly journals BSDEs with Logarithmic Growth Driven by Brownian Motion and Poisson Random Measure and Connection to Stochastic Control Problem

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Khalid Oufdil
Keyword(s):  
Optimal Control ◽  
Brownian Motion ◽  
Control Problem ◽  
Stochastic Optimal Control ◽  
Random Measure ◽  
Poisson Random Measure ◽  
One Dimensional ◽  
Stochastic Optimal Control Problem ◽  
Uniqueness Of The Solution ◽  
Logarithmic Growth

Abstract In this paper, we study one-dimensional backward stochastic differential equations under logarithmic growth in the 𝑧-variable ( | z | ⁢ | ln ⁡ | z | | ) (\lvert z\rvert\sqrt{\lvert\ln\lvert z\rvert\rvert}) . We show the existence and the uniqueness of the solution when the noise is driven by a Brownian motion and an independent Poisson random measure. In addition, we highlight the connection of such BSDEs with stochastic optimal control problem, where we show the existence of an optimal strategy for the control problem.

Sign in / Sign up

Export Citation Format

Share Document