Optimization for capital dissipation minimization in a common of resource exchange processes

Abstract: An investigation of a common of simple resource exchange processes between a firm and an economic subsystem with a generalized commodity transfer law [], in which the effects of the price elasticity of supply and demand are introduced, is presented in this paper. Optimal price configurations for minimum capital dissipation (which is analogous to the physical quality of entropy generation in thermodynamics and could be used to measure the irreversibility of economic processes) are obtained by applying optimal control theory. The optimal exchange strategy for the case with the linear commodity transfer law [] coincides with the exchange strategy of constant commodity flow operation, and the optimal exchange strategies for the cases with different commodity transfer laws are significantly different from each other. Numerical examples for the cases with some special commodity transfer laws are provided, and the optimal exchange strategies are compared with the common strategies of constant firm price and constant commodity flow operations. The results show that the differences among the capital dissipation of different exchange strategies decrease with the increase of value of , and the strategy of constant commodity flow operation is closer to the optimal strategy of minimum capital dissipation compared to that of constant firm price operation. The obtained results can provide some theoretical guidelines for the selection of optimal exchange strategies during real economical actions. [Copyright &y& Elsevier]