Optimal Replenishment Strategy for Inventory Mechanism with a Known Price Increase and Backordering in Finite Horizon

For the finite horizon inventory mechanism with a known price increase and backordering, based on minimizing the inventory cost, we establish two mixed integer optimization models. By buyer’s cost analysis, we present the closed-form solutions to the models, and by comparing the minimum cost of the two strategies, we provide an optimal ordering policy to the buyer. Numerical examples are presented to illustrate the validity of the model, and sensitivity analysis on major parameters is also made to show some insights to the inventory model.

Finite-Horizon H-Infinity Control for Time-Varying State-Saturated Systems under Stochastic Communication Protocol

In this paper, the H∞ control problem is investigated for a class of time-varying state-saturated systems with both stochastic parameters and nonlinearities under the stochastic communication protocol (SCP). The sensor-to-controller network is considered where only one sensor can obtain access to the communication network at each transmission instant. The SCP is adopted to mitigate the undesirable data collision phenomenon. The model transformation technique is employed to simplify the addressed problem, and then, the completing squares method is carried out to obtain a sufficient condition for the existence of the finite-horizon H∞ controller. The controller parameters are characterized by solving two coupled backward recursive Riccati-like difference equations. A simulation example is finally utilized to illustrate the effectiveness of the proposed controller design scheme.