Model Predictive Control of a Forecasting Production System with Deteriorating Items

The authors consider in this paper an integrated forecasting production system of the tracking type. The demand rate during a certain period depends on the demand rate of the previous period. Also, the demand rate depends on the inventory level. Items on the shelves are subject to deterioration. Using a model predictive control approach, the authors obtain the optimal production rate, the optimal inventory level, the optimal demand rate, and the optimal objective function value, explicitly in terms of the system parameters. A numerical example is presented.