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Optimal strategies of a production-inventory firm with debt repayment. (English. Russian original) Zbl 1441.91040

Comput. Math. Model. 31, No. 2, 228-255 (2020); translation from Probl. Din. Upr. 2017, No. 8, 169-201 (2017).
Summary: We consider a controlled model of a firm that produces to inventory while simultaneously repaying its debt. Maximization of a terminal functional for this model is considered. The corresponding optimal solutions are analyzed by Pontryagin’s maximum principle. All optimal controls are found depending on the parameters of the original model and the functional weighting coefficient. An appropriate economic interpretation is proposed for the results. Numerical calculations reported in the article establish validity of the theoretical results.

MSC:

91B38 Production theory, theory of the firm
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