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Optimal pricing control in distribution networks with time-varying supply and demand (1403.6952v1)
Published 27 Mar 2014 in math.OC and cs.SY
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.