Control of Supply Chains

Abstract

This chapter aims to apply control principles in the discrete-time control of Supply Chains. The primary objective of the control is to keep the inventory levels (state variables) steady at their predetermined values and reduce any deviations to zero in the shortest possible time. The disturbances are induced by demand deviations from the planned/anticipated levels. The replenishment flows are the control variables. Thus, the control action is very similar to a “Linear Regulator with zero set-point”. A novel development in this chapter is the use of direct Operator methods to solve the system Difference Equations, thereby obviating the need for Z-Transforms, block diagrams and transfer functions of classical control theory. This chapter provides a novel application of control theory as well as an easier method of solution.