Minimum Variance Control for Decentralized Supply Chain System
A optimization-based control approach for decentralized supply chain networks is presented.The control strategy applies minimum variance control (MVC) priciples to the entire network. Transfer functions for each unit in the supply chain are obtained by z-transform. The entire chain can be modeled by combining these transfer functions into a close loop transfer function for the network.The model proves to be very useful in maintaining an inventory level that is just enough to satisfy customer demand. Customer demand trends are described by a general ARIMA model. The order policy is obtained by minimizing the errors between predicted inventory levels and set points and using a function that penalizes large changes in orders. Simulation results show that this approach can track customer demand and maintain a proper inventory level without causing a bullwhip effect.
Supply chain minimum variance control ARIMA bullwhip effect
Hai Dong Yanping Li
School of Mechanical Engineering Shenyang University Shenyang,P.R..China School of Information Engineering and Automation Shenyang University Shenyang,P.R..China
国际会议
2007 Conference on Systems Science, Management Science and System Dynamics(第二届系统科学、管理科学与系统动力学国际会议)
上海
英文
381-386
2007-10-19(万方平台首次上网日期,不代表论文的发表时间)