Dynamic Optimization Model for Planning of Integrated Logistical System Functioning

Abstract

In our paper, the dynamic (discrete-time) economic-mathematical model for determination of optimal plane of purchase of raw material and complete set, finished products output by a plant, and their delivery to consumers is proposed. This model is developed for the cases of fixed and random demand at destinations over the given planning horizon. Our approach is based on a generalization of the Wagner-Whitin inventory control model.