IMPULSIVE SALE-PROFIT MODEL

Abstract

This paper considers optimization problems that arise from mathematical economics involving the impulsive sale-profit model of a company producing some items in a mechanically independent non-competitive market situation. The sale and profit profiles of the company are analyzed using a variable allocation of funds for sales promotions, minimizing the cost functional subject to impulsive control and Lyapunov Functional. We formulate the sales projection of the company using the ‘parasitic control measure’ and the impulsive-averaging technique. The result shows that the sale is bounded in a redundant market situation if some sale parameters are finite. The approximate solution and the error of approximation of the model exist