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A Dynamic Optimization Model for Integrated Production Planning: Computational Aspects

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2 Author(s)

The formulation and algorithmic solution of a class of optimal control models is discussed for integrated production, inventory, and research and development (R&D) planning. The model is based on the constrained minimization of the cost of labor, capital, and R&D engineering subject to a production constraint utilizing a Cobb-Douglas type input-output function. The solution technique utilizes a modification of a gradient projection algorithm due to Demyanov and Rubinov. Numerical results include a sensitivity analysis of the cost structures.

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IEEE Transactions on Systems, Man, and Cybernetics  (Volume:9 ,  Issue: 11 )