| dc.description.abstract | Inventory control is a natural action that everyone undertakes, as we keep foods, clothes, pens, papers, and many other goods. For companies, inventory control is an important thing to do because it manages the capital assets and organizes the availability of items for customers. Production-inventory system is a dynamic model (a function of time) so that it can be presented as a problem of optimal control. This paper is concerned with an optimal control of a production-inventory system with deteriorating items. It is assumed that the deterioration rate follows a two parameters Weibull distribution. In this work we investigate continuous and discrete models. Optimal condition for continuous model is derived by using Pontryagin maximum principle, where the solution is a second order differential equation which solved numerically by using finite difference method. While discrete production-inventory system is solved by Lagrange technique, with the optimal solution is obtained by solving difference equations recursively. | en |
