Tracking policies for a class of dynamic production-inventory systems

In this paper, new results are established for generating tracking policies in aggregated production-inventory systems. A dynamic model is developed to characterize the evolution of targeted production, inventory and demand over time and incorporates the inventory, production and demand tracking errors as additional variables. The control variables are managerial decision variables on rate of production and advertisement. The developed model takes the form of linear system with time-varying delay. Tracking policies are then formulated and determined to ensure that the production-inventory tracking model achieves a desirable performance in terms of H∞-measure. Numerical simulation is performed to illustrate the theoretical developments.