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LQ Optimal Sliding Mode Supply Policy for Periodic Review Inventory Systems

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2 Author(s)
Ignaciuk, P. ; Inst. of Autom. Control, Tech. Univ. of Lodz, Lodz, Poland ; Bartoszewicz, A.

In this technical note, the problem of inventory management in supply chain is addressed from a control theory perspective. In the analyzed setting, the stock used to satisfy an unknown, time-varying demand can be replenished from several supply sources. The replenishment orders are realized with delay which differs among suppliers and transport alternatives. A novel sliding-mode inventory policy is proposed, which guarantees that the demand is always entirely satisfied from the on-hand stock (yielding zero lost-sales cost), the warehouse capacity is not exceeded (what eliminates the risk of high-cost emergency storage) and ordered goods are not returned to the suppliers. As opposed to the classical, stochastic approaches, the parameters of the proposed controller are selected by minimizing a quadratic cost functional, which ensures an optimal dynamical performance of inventory systems with disparate lead times.

Published in:

Automatic Control, IEEE Transactions on  (Volume:55 ,  Issue: 1 )

Date of Publication:

Jan. 2010

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