System modeling and system optimization are two coupled and strongly related concepts in the modern approach to large-scale systems. Yet, they have been treated as two separate problems in the literature. The identification of system parameters, often referred to as system modeling, is essential in order to obtain an optimal control policy. This work considers the two problems jointly and provides a computational methodology in tackling the integrated problem formulation. This is done by viewing one of the objective functions in the bicriterion problem formulation as a constraint. A computational strategy such as quasilinearization is employed for the solution of the integrated problem. An example problem is introduced, and numerical results using an IBM 360/91 digital computer are presented.
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