Stochastic control processes and management science

Abstract

In the stochastic control processes, the criterion which minimizes the probability that the state variables of the overall stage exceed the fixed level is probably of greater importance. Although it does not resolve the arbitrariness inherent in the choice of a criterion of performance, this is a conforming result. The paper is divided into three parts. First, the mathematical formulation, the theorem of existence and uniqueness of solution, and the optimal policy in the equations created from our stochastic control processes are considered. Second, problems involving some stochastic control processes in a fuzzy environment are considered. Third, applications of the inventory control problem, the statistical quality control processes, and a control process connected with the Van der Pol equation are presented. Finally, the future problems are discussed.