Description:
In this paper, we are using optimal control approach to determine the optimal production rate in production
Inventory System, first build the mathematical models. Some references theories apply theory to control the inventory problem is Sprzeuzkouiski (1967), Hwang, Fan and Erickson (1967), Pekelman (1974), Bensoussan, Affandi P. (2011). The classical problem in the inventory problem is how to manage changes in consumer demand in a finished product. One such problem can be modeled and solved using optimal control techniques. Optimization problem that arises is how to balance between the interests of the smooth production and inventory storage price. Optimal control theory, an extension of the calculus of variations, is a mathematical optimization method to lose control policy. This method largely inspired by the work of Lev Pontryagin and his colleagues in the Soviet Union and Richard Bellman in the United States. Explicit optimal control is obtained for the two general inventory levels depend inventory production. inventory is used more specifically limited to the production of inventory problems.
Key words : Inventory production Problem, Control Theory.