Use of stochastic control theory to model a forest management system
type: Item
instance of: scholarly article
title: Use of stochastic control theory to model a forest management system
zbMATH Open document ID: 0563.90056
DOI: 10.1016/0307-904X(85)90124-6
author: M. Parlar
published in: Applied Mathematical Modelling
publication date: 1985-01-01T00:00:00Z
review text: A forest management problem due to \textit{O. Hellman} [Eur. J. Oper. Res. 4, 16-18 (1979; Zbl 0418.90059)] has been modelled as a stochastic control problem with one state variable (inventory level) and one control variable (consumption rate of wood by the factories). The stochastic process governing the evolution of the inventory level is transformed into an Itô stochastic differential equation by approximating the compound Poisson process of wood arrivals into the depot as a Wiener process. The resulting stochastic control problem is solved by using the Hamilton-Jacobi-Bellman equation of stochastic dynamic programming. Two numerical examples illustrate the results.
Mathematics Subject Classification ID: 90B30
Mathematics Subject Classification ID: 91B76
Mathematics Subject Classification ID: 93E20
Mathematics Subject Classification ID: 90B05
zbMATH DE Number: 3898594
zbMATH Keywords: forest management
zbMATH Keywords: stochastic control
zbMATH Keywords: Itô stochastic differential equation
zbMATH Keywords: Wiener process
zbMATH Keywords: stochastic dynamic programming
MaRDI profile type: Publication
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full work available at URL: 0307-904x(85)90124-6
OpenAlex ID: W2002721317
description: scientific article; zbMATH DE number 3898594