A SUBOPTIMAL POLICY APPLIED TO A PRODUCTION PLANNING PROBLEM UNDER EXOGENOUS DEMAND

An aggregated production planning problem is formulated as a sequential stochastic optimal control problem with constraints. In order to deal with this kind of problem, an equivalent deterministic problem, which keeps the first and second statistic moments directly in the formulation, is considered....

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Bibliographic Details
Published inIFAC Proceedings Volumes Vol. 39; no. 3; pp. 229 - 234
Main Authors Filho, O.S. Silva, Cezarino, W.
Format Journal Article
LanguageEnglish
Published 2006
Subjects
Inventory control
optimization problems
planning
stochastic theory
suboptimal control
planning
Inventory control
stochastic theory
optimization problems
suboptimal control
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ISSN1474-6670
DOI10.3182/20060517-3-FR-2903.00131

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Summary:An aggregated production planning problem is formulated as a sequential stochastic optimal control problem with constraints. In order to deal with this kind of problem, an equivalent deterministic problem, which keeps the first and second statistic moments directly in the formulation, is considered. Unfortunately, mathematical programming techniques applied to this deterministic problem provide only frozen policies (i.e. open-loop). To overcome such a difficulty, a suboptimal approach, called Naive Feedback Controller (NFC), is introduced. It provides a revised sequential solution for the equivalent deterministic problem. A simple example, where the inventory system is subject to demand's variability, illustrates the performance of NFC policy in comparison with an open-loop policy.
ISSN:1474-6670
DOI:10.3182/20060517-3-FR-2903.00131