A Centralized Model Predictive Control Strategy for Dynamic Supply Chain Management

Abstract

Abstract:Reducing the Bullwhip effect is one of several crucial problems in supply chain management. In this paper, a centralized Model Predictive Control (MPC) strategy is applied to control inventories in a 4 echelons supply chain. The single MPC controller used in this strategy optimizes globally and finds an optimal ordering policy for each node. The controller relies on a linear discrete-time state-space model to predict process output and the prediction can be approached by two multi-step predictors, which depend on measurability of the controller states. The objective function takes a quadratic form and thus the resulting optimization problem can be solved via standard quadratic programming. Simulation results show that centralized MPC strategy can track customer demand and maintain a proper inventory position level with reduced Bullwhip effect.

Overview of MPC applications in supply chains: Potential use and benefits in the management of forest-based supply chains

“…Hai et al, 2011;Fu et al, 2013;Fu et al, 2014;Han & Qiao, 2014;Kawtar et al, 2014;Pannek & Frazzon, 2014). However, as far as is the authors' knowledge there is no example of MPC application to the forest supply chain.…”

“…The wood, as a natural resource, is inte- Overview MPC supply chains: Potential use and benefits in forest-based supply chains 2013). Its main characteristics and advantages are: a cost function that measures the supply chain performance that can be maximized or minimized, MPC can be formulated to be stable and robust even in the presence of disturbances and stochastic demand (Wang et al, 2007;Puigjaner & Laínez, 2008;Fu et al, 2013). Also, it enables the integration of constraints in production, inventory levels and dispatch capacity, and defines operational objectives concerning how the following/ monitoring of inventory goals and responses to customers' orders are achieved (Wang et al, 2007), among others.…”

Inventory Control System for Vaccines Distribution With Model Predictive Control In Hospital

“…In a supply chain system other than essential to managing inventory, it is also very important to forecast changes in needs in inventory [6][7]. Demand changes are a frequent problem with inventory systems [8], in addition to the uncertainty of the number of requests and delays in delivery are also a problem in the supply chain [9]. The challenge faced in managing inventories is a demand that exceeds the amount of supply that can lead to stock shortages [10].…”

“…In the inventory control system to note is the time required for the order until the ordered goods came. The amount of inventory for each vaccine can be represented by a discrete linear model [8].…”

“…For si (t) represents the amount of drug supply (i) at time t, plus the order quantity of the ordered (oi) order at time t minus the pending order at time τi, subtracted by the number of untreated drug requests at time t [8], then subtracted by the number of drug requests (di) not yet given at time t [8]. In this study used only the number of orders at time t without minus the pending order at time τi.…”