We develop a methodology to investigate optimal dynamic policies for a large class of supply networks. The basic underlying model is a fluid dynamic model for continuous product flows in continuous time. Discrete as well as continuous controls are implemented.

The flow of parts through a production network is usually pre-planned by a central control system. Such central control fails in presence of highly fluctuating demand and/or unforeseen disturbances. To manage such dynamic networks according to low work-in-progress and short throughput times, an...