NDLI: Multilevel hierarchical controls in dynamic stochastic marketing-production systems

Content Provider	IEEE Xplore Digital Library
Author	Sethi, S. Zhang, Q.
Copyright Year	1992
Description	Author affiliation: Fac. of Manage., Toronto Univ., Ont., Canada (Sethi, S.)
Abstract	The authors present an asymptotic analysis of hierarchical marketing-production systems with stochastic demand and stochastic production capacity (machines are subject to breakdown and repair). The control variables are advertising and production rates which influence demand and inventory levels. The objective of the controls is to maximize the expected total profit over a finite horizon. Situations in which the rate change in machine states is large and/or when the rate of perturbation in demand is small are of interest. These give rise to upper level problems in which the stochastic machine availability is replaced by the equilibrium mean availability and/or the random demand is replaced by the average demand. Controls for the lower level problems in different cases can be constructed from nearly optimal controls of the corresponding upper level problems in a way which guarantees their asymptotic optimality. The error estimates for the constructed asymptotically optimal controls are also obtained.<>
Starting Page	2090
Ending Page	2095
File Size	616322
Page Count	6
File Format	PDF
ISBN	0780308727
DOI	10.1109/CDC.1992.371429
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	1992-12-16
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Stochastic processes Optimal control Stochastic systems Production systems Electric breakdown Advertising Error correction
Content Type	Text
Resource Type	Article

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