Academic Editor: Nikolaos E. Limnios
Copyright © 2009 Azizul Baten and Anton Abdulbasah Kamil. This is an open access article distributed under the
Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The paper studies the production inventory problem of minimizing
the expected discounted present value of production cost control in a manufacturing system with degenerate stochastic demand. We establish the existence of a
unique solution of the Hamilton-Jacobi-Bellman (HJB) equations associated with
this problem. The optimal control is given by a solution to the corresponding HJB