Optimal Control Theory to Solve Production Inventory System in Supply Chain Management

This paper describes how to control the inventory production system with Weibull distributed deterioration items. The model is solved by two methods and a comparison between them is conducted. In the first method the model is solved using the control theory approach. In the second method the model is discretized then the Dynamic Programming (DP) technique is applied. The advantage of second method is easier than the first method in computational and its accuracy can be improved by increasing the number of discretization intervals (sampling)