Abstract: In this paper we build an optimal control model,which quantitatively characterizes the dynamic impacts of conceptual learning and operational learning on variables such as level of cumulative knowledge,productivity,production cost per unit,and quality,and the aggregate impact of these variables on profit in the planning horizon.The distinct feature of our model is that it can normatively formulate the complex relationships among a variety of variables.We summarize the main results about the optimal conceptual learning and operational learning policies derived from the model analysis.More important,we analyze in detail the applications of these results to the practical learing in manufacturing firms.

Key words: manufacturing firms, learning, optimal control model