2012
DOI: 10.1002/apj.1695
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Model predictive control with dynamic pricing and probability inventory of a single supply chain unit

Abstract: This paper presents a model predictive control (MPC) method for a single supply chain (SC) unit. In order to make the most profit, the prediction of demand and the policy of inventory are the key factors for an SC unit. The ordering is a manipulate variable for an SC unit, and the pricing is introduced as another manipulate variable in this paper. The supposed price has determinate effect on the demand. The demand then can be regarded as a determinate part and a stochastic part. The inventory is regarded as a … Show more

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Cited by 7 publications
(4 citation statements)
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References 19 publications
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“…MPC was used to predict demand, in a reliable and short time manner. To maximize the supply chain profit, Niu et al (2013) implemented an MPC method to predict demand and control the inventory in a single unit. As manipulated variables were defined the ordering and the pricing, with different dynamics in the supply chain.…”
Section: Mpc Application In Supply Chainsmentioning
confidence: 99%
“…MPC was used to predict demand, in a reliable and short time manner. To maximize the supply chain profit, Niu et al (2013) implemented an MPC method to predict demand and control the inventory in a single unit. As manipulated variables were defined the ordering and the pricing, with different dynamics in the supply chain.…”
Section: Mpc Application In Supply Chainsmentioning
confidence: 99%
“…Similarly, (Perea-López, Ydstie, & Grossmann, 2003) defined operational variables to manage the profit optimality of the system. (Niu, Zhao, Xu, Shao, & Qian, 2013) focused on process production management by controlling the demand price dynamic and inventory level. Velarde, Valverde, Maestre, Ocampo-Martinez, & Bordons (2017) applied MPC to energy supply chains to manage the delays and disturbances in distribution networks.…”
Section: Reactive Approachesmentioning
confidence: 99%
“…They prove that the combination method leads to the same efficiency but with less computational time comparing with the original MPC. Niu, Zhao, Xu, Shao, and Qian (2013) implement the MPC to control the inventory under the uncertainty of demand. They consider the inventory decisions as control variables and the pricing as manipulated variables.…”
Section: I) Model Predictive Controlmentioning
confidence: 99%