Stochastic Model Predictive Control for costs optimization in a supply chain under a stochastic demand

Abstract

This paper aims to present a Stochastic Model Predictive Control to optimize the costs of shipping and storage in a supply chain. The goal is to minimize the objective function of the combined costs in a multi-stage and a multi-level supply chain responding to a stochastic multi-product demand. The simulation using Matlab provides a comparison between classical models and the proposed model, and shows that the Affine Recourse Stochastic Model Predictive Control - AR SMPC offers better results.