International Journal of
Physical Sciences

  • Abbreviation: Int. J. Phys. Sci.
  • Language: English
  • ISSN: 1992-1950
  • DOI: 10.5897/IJPS
  • Start Year: 2006
  • Published Articles: 2572

Full Length Research Paper

Direct solution of Riccati equation arising in inventory production control in a Stochastic manufacturing system

Md. Azizul Baten* and Anton Abdulbasah Kamil
Mathematics Program, School of Distance Education, Universiti Sains, Malaysia. 11800 USM, Penang, Malaysia.
Email: [email protected]

  •  Accepted: 10 June 2010
  •  Published: 31 July 2010

Abstract

We studied the production inventory problem in a manufacturing system with degenerate Stochastic demand. We derived the dynamics of inventory-demand ratio that evolves according to Stochastic neoclassical differential equation through Ito’s Lemma. We established the Riccati based solution of the Hamilton-Jacobi-Bellman (HJB) equation associated with this problem.

 

Key words: Inventory production models, Stochastic differential equations, manufacturing systems.

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This article is published under the terms of the Creative Commons Attribution License 4.0

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