IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v11y2023i20p4307-d1260753.html
   My bibliography  Save this article

Exact Solution for the Production Planning Problem with Several Regimes Switching over an Infinite Horizon Time

Author

Listed:
  • Dragos-Patru Covei

    (Department of Applied Mathematics, The Bucharest University of Economic Studies, Piata Romana, 1st District, 010374 București, Romania)

Abstract

We consider a stochastic production planning problem with regime switching. There are k ≥ 1 regimes corresponding to different economic cycles. The problem is to minimize the production costs and analyze the problem by the value function approach. Our main contribution is to show that the optimal production is characterized by an exact solution of an elliptic system of partial differential equations. A verification result is given for the determined solution.

Suggested Citation

  • Dragos-Patru Covei, 2023. "Exact Solution for the Production Planning Problem with Several Regimes Switching over an Infinite Horizon Time," Mathematics, MDPI, vol. 11(20), pages 1-13, October.
    • Handle: RePEc:gam:jmathe:v:11:y:2023:i:20:p:4307-:d:1260753
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/11/20/4307/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/11/20/4307/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Predrag S. Stanimirović & Gradimir V. Milovanović & Milena J. Petrović & Nataša Z. Kontrec, 2015. "A Transformation of Accelerated Double Step Size Method for Unconstrained Optimization," Mathematical Problems in Engineering, Hindawi, vol. 2015, pages 1-8, April.
    2. Abel Cadenillas & Peter Lakner & Michael Pinedo, 2013. "Optimal Production Management When Demand Depends on the Business Cycle," Operations Research, INFORMS, vol. 61(4), pages 1046-1062, August.
    3. Petrović, Milena J., 2015. "An Accelerated Double Step Size model in unconstrained optimization," Applied Mathematics and Computation, Elsevier, vol. 250(C), pages 309-319.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Milena J. Petrović & Ana Vučetić & Tanja Jovanović Spasojević, 2024. "Hybrid Modified Accelerated Gradient Method for Optimization Processes," Mathematics, MDPI, vol. 12(5), pages 1-13, February.
    2. Tunay I. Tunca & Weiming Zhu, 2018. "Buyer Intermediation in Supplier Finance," Management Science, INFORMS, vol. 64(12), pages 5631-5650, December.
    3. Ricardo Huamán-Aguilar & Abel Cadenillas, 2015. "Government Debt Control: Optimal Currency Portfolio and Payments," Operations Research, INFORMS, vol. 63(5), pages 1044-1057, October.
    4. Abel Cadenillas & Ricardo Huamán-Aguilar, 2016. "Explicit formula for the optimal government debt ceiling," Annals of Operations Research, Springer, vol. 247(2), pages 415-449, December.
    5. Jianmin Shi, 2020. "Optimal control of multiple Markov switching stochastic system with application to portfolio decision," Papers 2010.16102, arXiv.org.
    6. Chi Seng Pun, 2022. "Robust classical-impulse stochastic control problems in an infinite horizon," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 96(2), pages 291-312, October.
    7. Milena J. Petrović & Dragana Valjarević & Dejan Ilić & Aleksandar Valjarević & Julija Mladenović, 2022. "An Improved Modification of Accelerated Double Direction and Double Step-Size Optimization Schemes," Mathematics, MDPI, vol. 10(2), pages 1-18, January.
    8. Vladimir Rakočević & Milena J. Petrović, 2022. "Comparative Analysis of Accelerated Models for Solving Unconstrained Optimization Problems with Application of Khan’s Hybrid Rule," Mathematics, MDPI, vol. 10(23), pages 1-13, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:11:y:2023:i:20:p:4307-:d:1260753. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.