Theory of optimal control
Abstract
To have a sound theoretical background on the optimal control (OC) theory, as suggested for Chapter 9, also for this chapter is highly recommended reading the classical textbook by Alpha Chiang, Elements of Dynamic Optimization. This chapter is divided into the following sections: 1. From Sections 10.1–10.4, you will see how the general OC problems (including the bang-bang problems) can be modeled in Excel using the Shooting technique. The Excel Generalized Reduced Gradient (GRG) Solver will be used to solve these problems. 2. From Sections 10.5–10.7, there are some of the most used applications of the OC theory to economic problems, like Consumption, Investment, and Inventory optimization ...
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