English

Optimal pricing control in distribution networks with time-varying supply and demand

Optimization and Control 2014-03-28 v1 Systems and Control

Abstract

This paper studies the problem of optimal flow control in dynamic inventory systems. A dynamic optimal distribution problem, including time-varying supply and demand, capacity constraints on the transportation lines, and convex flow cost functions of Legendre-type, is formalized and solved. The time-varying optimal flow is characterized in terms of the time-varying dual variables of a corresponding network optimization problem. A dynamic feedback controller is proposed that regulates the flows asymptotically to the optimal flows and achieves in addition a balancing of all storage levels.

Keywords

Cite

@article{arxiv.1403.6952,
  title  = {Optimal pricing control in distribution networks with time-varying supply and demand},
  author = {Mathias Bürger and Claudio De Persis and Frank Allgöwer},
  journal= {arXiv preprint arXiv:1403.6952},
  year   = {2014}
}

Comments

Submitted to 21st International Symposium on Mathematical Theory of Networks and Systems (MTNS) in December 2013