This fully revised 3rd edition offers an introduction to optimal control theory and its diverse applications in management and economics. It brings to students the concept of the maximum principle in continuous and discrete time by using dynamic programming and Kuhn-Tucker theory. While some...

The speed with which an organization takes action against unplanned failure and scrapping of its capital equipment is used as a measure of organizational nimbleness. Operational decisions at the plant level are studied in the setting of the optimal control model of Kamien and Schwarz for...

We develop a general methodology for a partially observed stochastic control problem. The dynamics is governed by a discrete-time Markov process. We describe an application to an inventory system with possibility of shrinkage, and introduce unnormalized conditional probabilities to transform the...

My assignment for this lecture is to discuss applications of optimal control theory to Management Science problems. Since the field of Management Science encompasses production, finance, and marketing as its main functional areas which themselves are rather vast, it will not be possible to...

We consider two control problems on a finite horizon; one stochastic and the other deterministic. In both problems the running cost and the terminal cost are the same. The controllable input in both problems is of an additive nature with cost proportional to the input (which can be both positive...

In this paper we derive useful sufficiency optimality conditions for a class of optimal control problems subject to differential inclusions and involving non-differentiable functions. A production inventory problem is solved to illustrate our results

Sufficient conditions in the form of a maximum principle are obtained for the optimal control of a system described by integro-differential equations and subject to some specified path constraints. The conditions are relaxed to allow for jumps in the adjoint variables at the junction points,...

This paper presents an asymptotic analysis of hier­archical marketing-production systems with stochastic demand and stochastic production capacity (machines are subject to bre­akdown and repair). Our control variables are advertising and production rates which influence demand and inventory...