9501652 Chong The research aspect of this proposal deals with issues in decision, control, and optimization problems for Discrete Event Systems (DESs). DESs are dynamical systems that are driven by the occurrence of physical events, and arise in virtually all manmade systems, including manufacturing systems, communication networks, distributed computer systems, logistic systems, and vehicular traffic. The proposal considers performance oriented DES models, and focuses on the problem decision and control for performance optimization. Methods for optimizing DESs have received significant interest in recent years, and show tremendous promise for the development of efficient ways to optimize large-scale complex man-made systems. The proposal focuses on parametric and nonparametric decision and control problems. An objective of the study is to couple perturbation analysis methods with optimization algorithms, both parametric and nonparametric, with the aim of gaining further rigorous understanding into when and why they work, and developing algorithms and tools that will be useful in DES decision and control problems. This work emphasizes applications in manufacturing systems, communication networks, and real-time computer systems. The education component of this proposal focuses on three efforts. The first effort is to develop and promote a program of undergraduate involvement in research, through individual or team projects. The second effort consists of developing a comprehensive research program and curriculum in the area of modern control, including laboratory facilities for experimentation and computing. The third effort concerns the principal investigator's ongoing work in the professional development and training of engineering students, primarily in his capacity of as the branch counselor and faculty advisor of the Purdue IEEE student branch. ***