@conference{disney2019, author = {S.M. Disney}, title = {Discrete control theory}, booktitle = {The spectrum of systems approaches to problem solving - from systems engineering to systems dynamics to systems thinking. A workshop hosted by the UK Chapter of the Systems Dynamics Society and the EPSRC ReRun project}, year = {2019}, address = {Cardiff, UK}, month = {22nd March}, abstract = {Using block diagrams, z-transforms and Tsypkin’s relation I show how to obtain the variances of the orders and inventory levels maintained by the proportional order-up-to policy. Assuming demand is uncorrelated and normally distributed, a proportional feedback controller equal to the golden ratio minimizes a weighted sum of the variances. One may also minimize the inventory and capacity costs maintained by this replenishment policy.} }