Optimal control of a deteriorating process with a quadratic loss function

摘要

This paper considers the optimal determination of the length of the production run and the initial setting of a process that exhibits a linear drift that can start at a random point in time. Quadratic off-target costs and time- based costs of maintenance and salvage value are included in the formulation. The model includes other models proposed in the literature as particular cases. Numerical examples are provided to illustrate the application of the proposed model.