Observable and controllable state space representations of a generalized Order-Up-To policy

In this paper we develop a state space model of a generalized production and inventory control policy. The particular control policy, which we term APVIOBPCS, is a generalization of the periodic review Order-Up-To-S policy or the (s,S) policy when s=S. Traditionally, we have studied this model with transfer functions in the frequency domain. Herein, we develop discrete time state space representations of the ordering policies dynamic inventory behavior that is both controllable and observable. This state space representation of the generalized OUT will form the basis of future research.