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An adaptive model predictive control configuration for production-inventory systems

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  • Aggelogiannaki, Eleni
  • Doganis, Philip
  • Sarimveis, Haralambos

Abstract

In this paper, an adaptive model predictive control (MPC) configuration is proposed for the identification and control of production-inventory systems. The time-varying dynamic behavior of the production process is approximated by an adaptive Finite Impulse Response (FIR) model. The well-known recursive least-squares (RLS) method is used for the online identification of the model coefficients. The adapted model along with a smoothed estimation of the future customer demand are used to predict inventory levels over the optimization horizon. The efficiency of the proposed scheme is evaluated regarding its capability to eliminate the inventory drift. The performance of the method with respect to the bullwhip effect is also considered and studied in the paper. Comparison with non-adaptive control approaches illustrates the advantages of the proposed method.

Suggested Citation

  • Aggelogiannaki, Eleni & Doganis, Philip & Sarimveis, Haralambos, 2008. "An adaptive model predictive control configuration for production-inventory systems," International Journal of Production Economics, Elsevier, vol. 114(1), pages 165-178, July.
    • Handle: RePEc:eee:proeco:v:114:y:2008:i:1:p:165-178
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    References listed on IDEAS

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    1. Lalwani, Chandra S. & Disney, Stephen M. & Towill, Denis R., 2006. "Controllable, observable and stable state space representations of a generalized order-up-to policy," International Journal of Production Economics, Elsevier, vol. 101(1), pages 172-184, May.
    2. Geary, S. & Disney, S.M. & Towill, D.R., 2006. "On bullwhip in supply chains--historical review, present practice and expected future impact," International Journal of Production Economics, Elsevier, vol. 101(1), pages 2-18, May.
    3. Disney, S. M. & Towill, D. R., 2003. "On the bullwhip and inventory variance produced by an ordering policy," Omega, Elsevier, vol. 31(3), pages 157-167, June.
    4. Evans, G. N. & Naim, M. M. & Towill, D. R., 1998. "Application of a simulation methodology to the redesign of a logistical control system," International Journal of Production Economics, Elsevier, vol. 56(1), pages 157-168, September.
    5. Disney, S. M. & Towill, D. R., 2003. "The effect of vendor managed inventory (VMI) dynamics on the Bullwhip Effect in supply chains," International Journal of Production Economics, Elsevier, vol. 85(2), pages 199-215, August.
    6. Dejonckheere, J. & Disney, S. M. & Lambrecht, M. R. & Towill, D. R., 2003. "Measuring and avoiding the bullwhip effect: A control theoretic approach," European Journal of Operational Research, Elsevier, vol. 147(3), pages 567-590, June.
    7. Disney, S. M. & Towill, D. R. & van de Velde, W., 2004. "Variance amplification and the golden ratio in production and inventory control," International Journal of Production Economics, Elsevier, vol. 90(3), pages 295-309, August.
    8. Dejonckheere, J. & Disney, S. M. & Lambrecht, M. R. & Towill, D. R., 2002. "Transfer function analysis of forecasting induced bullwhip in supply chains," International Journal of Production Economics, Elsevier, vol. 78(2), pages 133-144, July.
    9. Frank Chen & Zvi Drezner & Jennifer K. Ryan & David Simchi-Levi, 2000. "Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information," Management Science, INFORMS, vol. 46(3), pages 436-443, March.
    10. Dejonckheere, J. & Disney, S. M. & Lambrecht, M. R. & Towill, D. R., 2004. "The impact of information enrichment on the Bullwhip effect in supply chains: A control engineering perspective," European Journal of Operational Research, Elsevier, vol. 153(3), pages 727-750, March.
    11. Disney, S.M. & Towill, D.R., 2005. "Eliminating drift in inventory and order based production control systems," International Journal of Production Economics, Elsevier, vol. 93(1), pages 331-344, January.
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    Cited by:

    1. Ciancimino, Elena & Cannella, Salvatore & Bruccoleri, Manfredi & Framinan, Jose M., 2012. "On the Bullwhip Avoidance Phase: The Synchronised Supply Chain," European Journal of Operational Research, Elsevier, vol. 221(1), pages 49-63.
    2. Lin, Junyi & Huang, Hongfu & Li, Shanshan & Naim, Mohamed M., 2023. "On the dynamics of order pipeline inventory in a nonlinear order-up-to system," International Journal of Production Economics, Elsevier, vol. 266(C).
    3. Spiegler, Virginia L.M. & Naim, Mohamed M., 2017. "Investigating sustained oscillations in nonlinear production and inventory control models," European Journal of Operational Research, Elsevier, vol. 261(2), pages 572-583.
    4. Schwartz, Jay D. & Rivera, Daniel E., 2010. "A process control approach to tactical inventory management in production-inventory systems," International Journal of Production Economics, Elsevier, vol. 125(1), pages 111-124, May.
    5. Zhou, Yuxuan & Wang, Xun & Naim, Mohamed M. & Gosling, Jonathan, 2022. "A system dynamics archetype to mitigate rework effects in engineer-to-order supply chains," International Journal of Production Economics, Elsevier, vol. 250(C).

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