Optimal control of one economical problem using a principle of maximum

Author: phridon Dvalishvili
Keywords: optimal control, supply-demand analyzis, the boundary value problem for systems of differential equations
Annotation:

It is clear that overproduction and the necessity to store commodities lead to obvious losses for the company. Losses will be even bigger in the case of shortage, taking into consideration the unmet demand and a smaller profit. It is obvious that the fact that shortage impairs the company’s reputation should also be taken into account. One model of optimal control for a problem of commodity production and supply is given. Using a principle of maximum it is constructed production volume change dynamics (optimal control) and commodity supply functions, so that the overall loss is minimal.