Modern optimal control of a micro-economic system.

Abstract

This thesis presents a microeconomic model for a manufacturing firm, including typical control variables. Constraints are established for the controls and a realistic cost criterion derived. The resulting optimization problem is solved by the use of Pontryagin's Maximum Principle which yields the required form for the controls. Numerical results are obtained through the solution of a two point boundary value problem (T.P.B.V.P.).