A generalized version of the Modigliani-Hohn production smoothing model is analyzed, and two types or classes of theorem are proved. (Theorems 1 and 2): The planning horizon (defined as a minimal interval of sufficient length to yield optimal current decisions) depends critically on the...

The smoothing of fluctuations in production and inventory has been handled successfully as a problem in servomechanisms: an optimal linear filter (production scheduling policy) balances costs of inventory fluctuation and costs of production fluctuation. This approach requires the system to...