On Production Planning and Activity Periods

摘要: Consider a company which produces and sells certain product on market with highly variable demand. Since the demand is very high during some periods, will produce create stock in advance before these periods. On other hand it costs money to hold big stock, so that balance needed for optimum. The assumed be known sufficient accuracy. We use technique from optimal control theory analysis, leads so-called activity During such period positive production maximal, provided problem starts zero usual case. Over of one or more years, there few Outside periods policy choose = smaller [demand, maximal production]. “intrinsic time length” central concept. It simply unit can stored selling without creating loss.