An Effective Modeling and Control Strategy for Supply Chain Design and Planning
The dynamics and uncertainty of the business and the market makes difficult to coordinate the activities of a supply chain. Therefore, it is important to review systematically and to take into account the variability in the planning formulation in order to manage a supply chain network efficiently. A novel stochastic multi-period design and planning MILP model of a multiechelon supply chain network is used as a predictive model in this work. Model predictive control is presented as a way to manage supply chain in the presence of uncertainty by incorporating unforeseen events into the planning process. Illustrative example shows control strategy based on model predictive control framework is effective in the supply chain network design and planning.
H. Dong et al., "An Effective Modeling and Control Strategy for Supply Chain Design and Planning", Key Engineering Materials, Vols. 467-469, pp. 1132-1135, 2011