Optimal control model for finite capacity continuous MRP with deteriorating items

A general model for continuous material requirements planning problem is proposed which contains of reworking of returned items along with deterioration of items. In the proposed model there are separated stocks for manufactured, returned and reworked items and also it is possible to consider returned items from both inventories of manufactured and reworked items. A general finite time linear quadratic optimal control problem is presented to attain the goal values for inventories, demands and productions. The goal values for inventories, demands and production can be considered as the capacity of stocks, scheduled demand and capacity of transportation respectively. Since the time is considered as a continuous parameter, the carrying cost of production process is more real than the periodic approach wherein time is considered as a discrete parameter. Finally a solution method is presented and numerical simulations are provided to validate the approach.

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