Inventory Control and Simulation Optimization in Supply Chain Network Based on MPC
The control approach applies multivariable model-predictive control principles to the entire network. The optimization scheme based on predictive-control aims at adjusting the decision variables in the supply chain to satisfy the customer orders with the least operating cost over a specified rolling time horizon using a detailed difference model of the system. Dedicated feedback controllers are utilized to maintain product inventory at all nodes of the supply chain network within pre-specified target levels that are subsequently embedded within the optimization control framework. The PID control policy is applied to promoting the predictive control effect, and the comparative simulations of the system under both PID and non-PID control are exerted. Simulated results prove that the inventory control system with the proposed MPC optimizations show good dynamic performance. But the MPC approach combined with PID control makes better effect on inventory predicted control in the supply chain network.
C. L. Liu et al., "Inventory Control and Simulation Optimization in Supply Chain Network Based on MPC", Applied Mechanics and Materials, Vols. 66-68, pp. 1718-1723, 2011