An impulsive control approach to deriving the optimal dynamic mix of manual and automatic output (Q1081526)

An organization is capable of producing output via a manual workforce and through automation. The problem of determining the optimal mix of output over a planning period is modelled as an optimal control problem and since automation can only be purchased in discrete amounts the analysis makes use of optimal impulsive control theory. A numerical algorithm is described that derives a solution and the algorithm is applied to several examples. The results from the examples are compared to analyse the effects on the optimal solution of changes in the exogenous variables.