Hybrid mathematical model of inventory system with piecewise holding cost and its optimal strategy

Sutrisno, Sutrisno; Widowati, Widowati; Munawwaroh, Dita Anies

doi:10.1109/icamimia.2015.7507996

Cited by 8 publications

(3 citation statements)

References 12 publications

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“…However, the simplest dynamical model for the inventory system was developed using a linear state space equation [5]. Some more advanced approaches were also developed using a price discount [6]- [8]. Further works were carried out for specific control purposes such as on-hand stock tracking by using some existing control algorithm like ∞ method [9], linear quadratic controller (LGQ) [10], and predictive controller [11].…”

Section: Introductionmentioning

confidence: 99%

Control of inventory system with random demand and product damage during delivery using the linear quadratic gaussian method

Sutrisno

Widowati

Tjahjana

2021

IJEECS

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This study formulates a dynamical system for the control of a single product inventory system in accordance with the random value of demand and the percentage of damaged product during the delivery process. The formulated model has the form of a linear state-space system comprising of two disturbances, which represents the random value of demand and the percentage of the damaged product during delivery. The optimal value of the product amount ordered to the supplier is properly calculated by using the linear quadratic gaussian (LQG) method. The controller is used by the manager to make inventory level decisions under the uncertainty of demand and damaged items during the product delivery process. The result showed that the optimal product order for each review time was achieved, and the inventory level was used to obtain the right set point properly. Moreover, based on comparison with other research results, the proposed model was well performed.

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Section: Introductionmentioning

confidence: 99%

Control of inventory system with random demand and product damage during delivery using the linear quadratic gaussian method

Sutrisno

Widowati

Tjahjana

2021

IJEECS

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“…This approach was initially applied to supplier selection problem in [1], [2] through the use of a linear integer programming model and several advanced models have been developed afterwards by extending the approach to other areas such as network processes [3] - [8], the fuzzy concept [9] - [12], game theory [13], risk theory [14], and others. Moreover, each mathematical model has different attributes based on the problem they are meant to solve as observed in facility disruption [15], holding cost discount [16], deteriorating item scheme [17], [18], fast service scheme [19], and price break scheme [20]. For field application purposes, several articles have reported the methods used in solving supplier selection problem with some observed in industries such as automotive manufacturing [21], financial [22], power source [23] - [25], healthcare [26], [27], and others.…”

Section: Introductionmentioning

confidence: 99%

Probabilistic Programming with Piecewise Objective Function for Solving Supplier Selection Problem with Price Discount and Probabilistic Demand

Sutrisno¹,

Sunarsih²,

Widowati³

2020

EECSI

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In this article, a supplier selection problem with price discount and probabilistic demand was solved by formulating a new probabilistic programming model with a piecewise objective function. The proposed model was able to be used by the decision-maker to calculate the optimal decision involving the appropriate raw material quantity to be ordered from each supplier to have minimal total procurement cost. A numerical experiment was conducted with some randomly generated data and the results showed the supplier selection problem was solved by the proposed model and the optimal decision value is achieved.

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“…The PWA model can be converted into mixed logical dynamical system (MLD) by writing the PWA model in hybrid systems description language (HYSDEL) and the equivalent MLD model can be generated by using mld function in hybrid toolbox for MATLAB [8,9]. For an inventory system with piecewise holding cost where the holding cost is different for several stock level intervals, [10] was formulated a hybrid mathematical model in piecewise-affine (PWA) model and controlled the stock level to track some desired level by using model predictive control for hybrid system. Predictive control is an optimal control method that can be used to solve a trajectory tracking control problem.…”

Section: Introductionmentioning

confidence: 99%

Optimal strategy for supplier selection problem integrated with optimal control problem of single product inventory system with piecewise holding cost

Sutrisno

Widowati

Tjahjana

2017

J. Phys.: Conf. Ser.

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Abstract. In this paper, we formulate a hybrid mathematical model of supplier selection problem integrated with inventory control problem of a single product inventory system with piecewise holding cost. This model will be formulated in a piecewise affine (PWA) form that can be converted into mixed logical dynamic (MLD) form. By using this MLD model, we solve the supplier selection problem and control this inventory system so that the stock level tracks a desired level as the reference trajectory as closed as possible with minimal total cost. We use model predictive control for hybrid system to solve the problem. From the numerical experiment results, the optimal supplier was selected at each time period and the evolution of the stock level tracks the desired level well. IntroductionManagement on supply chain tries to minimize the operational cost and improve the profit. It focuses in relationships in order to maximize outcome for all parties in the chain [1]. Supply chain network consisting of all parties that are manufacturer, suppliers, carriers or transporters, warehouses, retailers and customers [2]. The optimal strategy in supply chain management is made to minimize the operational cost with some service level constraint and determine the optimal quantity, optimal locations and optimal time of a product to be produced and distributed [3]. Supply chain contains inventory system that has to be optimized so that it gives the minimal holding cost. Inventory problem can appear in the several forms like raw material inventory, work-in-process inventory and finished product inventory and each of them needs to be controlled in order to minimize the holding cost [3]. Most of researchers were developed a mathematical model to optimize supply chain management. The basic mathematical model in a linear state space equation for periodic review inventory system was developed in [4] and the optimal strategy was determined by using linear quadratic control method. Another approach was used a particle swarm optimization to optimize the basic inventory system considering discount [5].Supply chain management is also contains supplier selection problem. Supplier selection problem is appeared if we have several supplier alternatives to supply the product and we have to decide how many the product that will be purchased from each supplier. Several approaches were used to find the optimal strategy for supplier selection problem solving. The most approach is mathematical model [6]. In control theory, there is a mathematical model called hybrid

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Hybrid mathematical model of inventory system with piecewise holding cost and its optimal strategy

Cited by 8 publications

References 12 publications

Control of inventory system with random demand and product damage during delivery using the linear quadratic gaussian method

Control of inventory system with random demand and product damage during delivery using the linear quadratic gaussian method

Probabilistic Programming with Piecewise Objective Function for Solving Supplier Selection Problem with Price Discount and Probabilistic Demand

Optimal strategy for supplier selection problem integrated with optimal control problem of single product inventory system with piecewise holding cost

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