Inventory control based on a real-moment dynamic model

To avoid abuses of the two classic inventory control method, inventory management problem was regarded as continuous system based on the method of modern control theory. Stock of a moment was defined as a control variable and productivity of that moment was defined as state variables. Then a real-moment dynamic model was built and the objective function was given. After that, the optimal control was solved out based on the Hamilton function, thus the optimal inventory in continuous production conditions was presented.