MPC Control and Simulation of a Mixed Recovery Dual Channel Closed-Loop Supply Chain with Lead Time

Abstract

With the emergence of e-commerce, the closed-loop supply chain composed of e-commerce direct sale channel and reverse logistics formed by return and exchange is becoming more and more complex. The lead time of each node in the supply chain increases the uncertainty of the system, making it more difficult to restrain bullwhip effect. The model predictive control (MPC) method is used to restrain the bullwhip effect. Firstly, based on the state-space model of the mixed recovery dual-channel closed-loop supply chain with lead time, an augmented state-space model is established through state reorganization to solve network complexity caused by the lead time; Secondly, a structural diagram is constructed in the SIMULINK environment. The prediction model, the state estimation, and the objective function are presented. Thirdly, the KWIK quadratic programming method is derived, and the solution steps of the method are given. Finally, by simulating with random demand and sinusoidal demand as system input, the effectiveness of the method is verified. The results show that this method can effectively restrain the bullwhip effect and make the production, ordering and inventory curves tend to be smooth.