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Robust optimal control of material flows in demand-driven supply networks

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  • Laumanns, Marco
  • Lefeber, Erjen

Abstract

We develop a model based on stochastic discrete-time controlled dynamical systems in order to derive optimal policies for controlling the material flow in supply networks. Each node in the network is described as a transducer such that the dynamics of the material and information flows within the entire network can be expressed by a system of first-order difference equations, where some inputs to the system act as external disturbances. We apply methods from constrained robust optimal control to compute the explicit control law as a function of the current state. For the numerical examples considered, these control laws correspond to certain classes of optimal ordering policies from inventory management while avoiding, however, any a priori assumptions about the general form of the policy.

Suggested Citation

  • Laumanns, Marco & Lefeber, Erjen, 2006. "Robust optimal control of material flows in demand-driven supply networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 363(1), pages 24-31.
    • Handle: RePEc:eee:phsmap:v:363:y:2006:i:1:p:24-31
    DOI: 10.1016/j.physa.2006.01.045
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    References listed on IDEAS

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    1. Ouyang, Yanfeng & Daganzo, Carlos F., 2005. "Some Properties of Decentralized Supply Chains," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt5qt7g4tv, Institute of Transportation Studies, UC Berkeley.
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