This paper treats the managerial planning problem of a composite marketing-production process in an uncertain environment through the Model Based Predictive Control (MBPC) approach. For completeness, a review of the literature concerning the application of stochastic control methodologies to dynamic operational research and managerial planning problems under uncertainty is first provided. Next, an outline of the Model Based Predictive Control methodology is given including all key elements required for our study. The composite marketing production problem that involves uncertainties is then fully formulated. The MBPC approach is tested through simulation in a number of nontrivial example cases. In all cases the performance of the resulting controlled system was shown to be excellent a fact that verified our original feeling about the suitability of the MBPC method for complex managerial decision making.
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