Accession Number:

AD0684079

Title:

APPLICATIONS OF MATHEMATICAL CONTROL THEORY TO ACCOUNTING AND BUDGETING. I. THE CONTINUOUS WHEAT TRADING MODEL

Descriptive Note:

Research rept.

Corporate Author:

CARNEGIE-MELLON UNIV PITTSBURGH PA MANAGEMENT SCIENCES RESEARCH GROUP

Personal Author(s):

Report Date:

1969-01-01

Pagination or Media Count:

29.0

Abstract:

A brief introduction to continuous mathematical control theory is presented. A model having two state variable accounts, cash and wheat, is defined by means of differential equations. Adjoint functions, the Hamiltonian function, and the optimum bang-bang policy are derived. Interpretations of the Hamiltonian and switching functions and a numerical example are given. The results are extended to the case where transaction costs and spoilage costs are incurred.

Subject Categories:

  • Administration and Management
  • Operations Research

Distribution Statement:

APPROVED FOR PUBLIC RELEASE