Abstract
We formulate a production problem in high-tech industry as a free-final-time optimal control problem. The instance with linear production cost is equivalent to a problem proposed by Pangburn and Sundaresan. The instance with quadratic production cost allows us to find a solution which is closer to what is seen in the real world. In the latter instance, the optimal production rate is strictly decreasing in a neighborhood of the final time.
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Acknowledgments
The authors wish to thank the anonymous referees for their helpful comments and suggestions. The research was supported by the Italian Ministry of University and Research and the University of Padova.
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Grosset, L., Viscolani, B. Manufacturing High-Tech Products Subject to Rapid Obsolescence. J Optim Theory Appl 170, 993–1008 (2016). https://doi.org/10.1007/s10957-016-0928-8
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DOI: https://doi.org/10.1007/s10957-016-0928-8