Optimal control strategies for a two-item production-maintenance system with deterioration

Abstract

In this work, the problem of optimal control for a two-item production-maintenance system with deterioration is considered. An inventory system process performance can be evaluated by analyzing the proportion of good units produced as the end product. The cost function is made up of the manufacturing costs, the holding costs of inventory, and the holding costs of one item due to the presence of another. The optimal control problem is resolved by applying Pontryagin’s principle. Numerical values are assigned to the monetary and non-monetary input parameters in order to simulate the outputs of the controlled system using the Runge–Kutta method.