Journal of Optimization Theory and Applications

, Volume 170, Issue 3, pp 993–1008 | Cite as

Manufacturing High-Tech Products Subject to Rapid Obsolescence

Article

Abstract

We formulate a production problem in high-tech industry as a free-final-time optimal control problem. The instance with linear production cost is equivalent to a problem proposed by Pangburn and Sundaresan. The instance with quadratic production cost allows us to find a solution which is closer to what is seen in the real world. In the latter instance, the optimal production rate is strictly decreasing in a neighborhood of the final time.

Keywords

Production Capacity Optimal control Free final time 

Mathematics Subject Classification

91B38 90B30 49N90 

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Copyright information

© Springer Science+Business Media New York 2016

Authors and Affiliations

  1. 1.Department of MathematicsUniversity of PadovaPaduaItaly

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