Optimal Control of Switching Diffusions with Application to Flexible Manufacturing Systems

Abstract
A controlled switching diffusion model is developed to study the hierarchical control of flexible manufacturing systems. The existence of a homogeneous Markov nonrandomized optimal policy is established by a convex analytic method. Using the existence of such a policy, the existence of a unique solution in a certain class to the associated Hamilton–Jacobi–Bellman equations is established and the optimal policy is characterized as a minimizing selector of an appropriate Hamiltonian.

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