One Step Ahead Optimal Control of a Single Echelon Supply Chain using Mathematical Programming

Amit Bhaya; Eugenius Kaszkurewicz; Luiz Carlos de Barros Roth

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Paper

One Step Ahead Optimal Control of a Single Echelon Supply Chain using Mathematical Programming

Topics: Inventory Theory; Optimization; Supply Chain Management

In Proceedings of the 9th International Conference on Operations Research and Enterprise Systems ICORES - Volume 1, 233-240, 2020 , Valletta, Malta

Authors: Amit Bhaya ; Eugenius Kaszkurewicz and Luiz Carlos de Barros Roth

Affiliation: COPPE, Federal University of Rio de Janeiro, PO Box 68504, Rio de Janeiro, Brazil

Keyword(s): Supply Chain, Mathematical Programming, Optimal Control, Discrete-time Dynamical System.

Abstract: A single echelon supply chain model problem, consisting of a store with known inventory and shipping capacities, a known delivery delay or lead time and a random demand for a product at the store is formulated as an optimal control problem. In the practical case when only current and past demands are known, using the concept of one step ahead optimal control, the problem is reformulated as the mathematical programming problem of maximizing economic value added (EVA), subject to the dynamics and constraints, such as inventory size. Illustrative examples are given and performance indices are proposed to evaluate the performance of the proposed controller, which exhibits good efficiency and no bullwhip effect.

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Paper citation in several formats:

Bhaya, A.; Kaszkurewicz, E. and Roth, L. (2020). One Step Ahead Optimal Control of a Single Echelon Supply Chain using Mathematical Programming. In Proceedings of the 9th International Conference on Operations Research and Enterprise Systems - ICORES; ISBN 978-989-758-396-4; ISSN 2184-4372, SciTePress, pages 233-240. DOI: 10.5220/0009130702330240

@conference{icores20,
author={Amit Bhaya. and Eugenius Kaszkurewicz. and Luiz Carlos de Barros Roth.},
title={One Step Ahead Optimal Control of a Single Echelon Supply Chain using Mathematical Programming},
booktitle={Proceedings of the 9th International Conference on Operations Research and Enterprise Systems - ICORES},
year={2020},
pages={233-240},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009130702330240},
isbn={978-989-758-396-4},
issn={2184-4372},
}

TY - CONF

JO - Proceedings of the 9th International Conference on Operations Research and Enterprise Systems - ICORES
TI - One Step Ahead Optimal Control of a Single Echelon Supply Chain using Mathematical Programming
SN - 978-989-758-396-4
IS - 2184-4372
AU - Bhaya, A.
AU - Kaszkurewicz, E.
AU - Roth, L.
PY - 2020
SP - 233
EP - 240
DO - 10.5220/0009130702330240
PB - SciTePress