Research On Inventory Management Of Continuous Production Based On Optimal Control Theory

Since the 50's of the 20th century, the studies and applications of inventory theory have made great progresses in both quantity and dimension in order to meet the further needs of unceasing development branch of Operations Research gradually. Furthermore, inventory theory is always an active field of Operations Research in the last several decades.Nowadays, even though our scientists have done a large quantity of fruitful works in the research of inventory theory and methods, expecially in the practical applications and have gained tremendous economics and social results, there is a large gap between the research of theory and practical use which hinder the practical applications of inventory theory from going further. Nevertheless, the challenge faced by our social economy to join the world economy is becoming even more rigorous and the actual needs of inventory management is getting much more urgent, people is now putting much emphasis on the study of theory of inventory control and practical use again.Additionally, with the rapid development of information, net and computer science and technology, the degree of socialization and modernization is getting higher and higher and it leads to the enlargement of the operational scope of enterprise, the complexity of the structure of products, the deterioration of management and the increase in the occupation of funds, human and material resources. Consequently, if the optimal control principle can be exerted over the actual inventory system, not only the expenditures can be reduced and the efficiency of resources can be raised but also the maximal ecomomic results can be obtained.In this paper, considering problem of inventory management as continuous system, and making use of modern control theory, inventory of time t as control variable and productivity of time t as state variable, real-time dynamic model of the system is established, objective function J is given, then using Hamilton function to calculate the optimal control, finally we get the optimal inventory control in the condition of continuous production. KEY WORDS:optimal control; hamilton function; inventory management;...