Modeling of Supply Chain Decision Logic Using PID Controllers

2004 ◽  
Author(s):  
Tung-King See ◽  
Edward M. Kasprzak ◽  
Tarunraj Singh ◽  
Kemper E. Lewis
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Critical Issue ◽  
Decision Makers ◽  
Pid Controllers ◽  
Supply Chain System ◽  
Number Of Factors ◽  
Human Decision ◽  
Decision Logic ◽  
Ordering Strategies

Most manufacturing takes place in the context of a supply chain. Each station in the supply chain must not only manufacture a product but also decide how much to produce. This decision is influenced by the supply of materials/components from the next station down in the supply chain and the demand from the next station up. With the advent of increased customization, inventory management is increasingly becoming a critical issue in the manufacturing process. In this paper we model the decision logic at each stage of a supply chain system through the use of system identification and PID controllers. The goal is to investigate and manage the costs of manufacturing a product in the context of a supply chain. It is assumed that the supply chain has well-understood interactions between individual positions, allowing for a focus on the ordering decision logic. A review of ordering strategies is presented, and a discussion of the difficulties in determining PID gains for human decision makers is included. The results show a range of correlation between the PID simulation and measured supply chain inventories. This stems from a number of factors, which are discussed. Additionally, ordering strategies to optimize the supply chain are investigated.

Implementing Supply Chain Strategies

2019 ◽  
pp. 78-109
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Data Science ◽  
Supply Chain System ◽  
Chain Management ◽  
Supply Chain Strategy ◽  
Corporate Strategies ◽  
Inventory Turnover ◽  
Order Fulfilment ◽  
Outsourcing Decision

This chapter emphasizes the key elements required to implement supply chain strategy in a firm. It highlights the differences in supply chain strategies, its alignment with corporate strategies, and the associated drivers of supply chain management. This chapter also highlights the dynamics associated with inventory and success of supply chain of a firm. It tries to provide a framework to resolve the supply chain managers' dilemma as to hold inventory for order fulfilment or to enhance the inventory turnover ratio to maximize profitability. The chapter discusses all facets of inventory management – it includes inventory management of constant as well as dynamic demand. This chapter introduces the concept of adaptive inventory control for non-stationary demand. There are situations when all assumptions of conventional approach may fail and hence points out the importance of application of artificial intelligence and data science in inventory management. This chapter brings out the varied dimensions of contracts that are crucial to have an effective supply chain system. Here the author attempts to put forward an outsourcing decision framework to facilitate make or buy decision. This chapter relates the concept of materials requirement planning (MRP) with independent items. Since supply chains are going global, this chapter introduces the concepts behind global sourcing including the significance of INCO (international commercial) terms.

scholarly journals Decision Optimization and Interest Coordination of Dual-Channel Supply Chain Embedded by Two-Echelon Logistics Service Providers under the Dominance of Retailer

2020 ◽  
Vol 2020 ◽  
pp. 1-22
Author(s):  
Jianjun Zhang ◽  
Daning Xing
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Service Providers ◽  
Sensitivity Coefficient ◽  
Service Level ◽  
Profit Sharing ◽  
Decision Makers ◽  
Coordination Mechanism ◽  
Supply Chain System ◽  
Decentralized Decision Making

Taking the dual-channel supply chain embedded by two-echelon logistics service providers as the research object, this paper studies the optimal decisions of each decision maker under the centralized and decentralized decision-making mode led by the retailer. Based on the decentralized decision-making mode, an improved coordination mechanism of residual profit sharing is designed to realize the interest coordination, in which the bargaining power of all participants is fully considered. The results show that, under the decentralized decision-making mode, the profit of FLSP increases first and then decreases as the sensitivity coefficient of cross-service level increases, while the profits of other decision makers and the supply chain system decrease with the increase of sensitivity coefficient of cross-service level. The relative size of the price sensitivity coefficient of online and offline channel has an inconsistent impact on the profit of FLSP, while it has a consistent impact on the profits of other decision makers. The profit of FLSP fluctuates greatly with changes in the sensitivity coefficient, and it is difficult to be guaranteed in the entire supply chain system. On this basis, an improved coordination mechanism of residual profit sharing is designed. The results show that, after the introduction of bargaining power coefficient of the Nash negotiation model, the variation coefficient of the profits of all decision makers is smaller after coordination, and the profit growth rates are more uniform.

A Research on Complex Event Processing Technology Based on Smart Logistic System

2014 ◽  
Vol 722 ◽  
pp. 430-435
Author(s):  
Bin Bin Fu ◽  
Jie Zhu
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Information Transfer ◽  
Supply And Demand ◽  
Complex Event Processing ◽  
Processing Technology ◽  
Event Processing ◽  
Supply Chain System ◽  
Technology Application ◽  
Demand Prediction

With IOT technology developing and the cost reducing, Its application in supply chain is a matter of time. Smart logistic system is one of the IOT technology application in supply chain which solve difficult problems, such as acquisition underlying data, information transfer and so on. we need to achieve higher level application and solve more complex problems such as improving inventory management accuracy, reducing supply chain management cost, improving accuracy of supply and demand prediction, supply chain's rapidly react ability,these need to use complex event processing technology. It will introduce how to apply complex event processing technology to supply chain system based on IOT. By this way we can sort out valuable information by processing a large number of simple event.

Risk measurement and optimization model of coal generation contracts for the difference between prospect M-V and normal triangular fuzzy stochastic variables

Kybernetes ◽  
2016 ◽  
Vol 45 (8) ◽  
pp. 1323-1339 ◽  
Author(s):  
Weiwei Li ◽  
Chong Wu ◽  
He Dong ◽  
Huan Wang ◽  
Mei Li
Keyword(s):  
Supply Chain ◽  
Fuzzy Random Variable ◽  
Random Variable ◽  
Decision Makers ◽  
Spot Price ◽  
Supply Chain System ◽  
Content Type ◽  
Measurement Models ◽  
Risk And Benefit ◽  
Fuzzy Random

Purpose Coal and power generation are related upstream and downstream industries. Coal price marketization and electricity price regulation have caused the price of coal to be sensitive to the benefits of generators. The paper aims to discuss these issues. Design/methodology/approach As a financial tool, contracts for differences can both help balance interests and reduce risks caused by spot price fluctuation. This thesis regards coal demand as a triangular fuzzy stochastic variable while directing a levelling consideration towards risk returns for coal and power enterprises that are involved in coal generation contracts for differences. Risk and benefit measurement models were established between coal suppliers and power generators, and risk and benefit balance optimization models for contract negotiation were constructed. Findings A numerical example showed that the above models can be effectively used to avoid the risks of coal-electricity parties. Originality/value This thesis regards coal demand as a triangular fuzzy random variable while directing a levelling consideration towards the risk return to coal and power enterprises that are involved with coal generation contracts for differences. The features of this thesis are the following: demand information is regarded as a fuzzy random variable instead of a random variable. With historical data, sales experience and increasingly clear macro-economic conditions, coal and power enterprises are able to make a fuzzy decision – to a certain extent – when the transaction approaches. Accurate market information enables the supply chain system to satisfy the clients’ needs better, improve the profit level or avoid severe financial damages; by developing a feasible set of contracts for different parameters, it is possible to estimate whether the price difference enables supply chain coordination, requires changes or gives accounts to all involved parties of the supply chain; and without the assumption that the traditional M-V rule is unfavourable to decision makers, this thesis proposes the prospect M-V rule, which involves decision makers’ projections of future coal generation prices and enables wide applicability of the response method to contracts for differences.

The Research of Inventory Management Based on the Supply Chain

2014 ◽  
Vol 687-691 ◽  
pp. 5116-5119
Author(s):  
Guo Gang Li ◽  
Jia Ying Zhou ◽  
Ting Yang
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Inventory Management ◽  
Normal Operation ◽  
Supply Chain System ◽  
Chain Management ◽  
Chain System ◽  
Existing Problems ◽  
The Difference ◽  
Market Needs

In the supply chain system, the inventory is the main object of supply chain management, the level of inventory is high or low not only affects the comprehensive cost of a single enterprise, but also restricts the performance of entire supply chain.To realize the difference between inventory management under the supply chain environment and the traditional supply chain management, to establish stock corresponding to uncertain market needs and how to overcome the existing problems is the important issues the enterprise managers must consider when they improve and optimize the supply chain . This article is based on that researching the problem of inventory management under the environment of supply chain,analyzing the challenges it faces, maintaining the good performance of the supply chain under the premise of normal operation of each link. At the sane time,it interprets the connotation of the supply chain and the inventory management under the environment of supply chain, and points out the several kinds of inventory management mode under environment of supply chain enterprises can take.

scholarly journals Investigating Inventory Strategy Under Demand Distribution Fluctuation in Dual-Channel Supply Chain

2021 ◽  
Vol 8 ◽  
Author(s):  
Nai-Ru Xu ◽  
Jie Cheng ◽  
Zheng-Qun Cai
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Distribution System ◽  
Demand Uncertainty ◽  
Management Problem ◽  
Market Demand ◽  
Supply Chain System ◽  
Demand Distribution ◽  
Dual Channel ◽  
Dual Channel Supply Chain

When manufacturers construct a dual-channel distribution system, which includes online and offline sales channels, they need to solve the inventory management problem to ensure supply and reduce inventory costs of the supply chain system. The dual-channel supply chain is the research object, and the inventory decision model is designed to achieve optimal profit when market demand is divided into online and offline demands. The results of the numerical analysis and simulations, conducted using MATLAB, indicate that both the manufacturer and the retailer increase their inventories and that their profits decrease when demand uncertainty increases. Besides, the increase in the online demand ratio causes the increase in the manufacturer’s inventory and reduces the profits of the retailer and the entire supply chain.

scholarly journals Medicines and vaccines supply chains challenges in Nigeria: a scoping review

2022 ◽  
Vol 22 (1) ◽  
Author(s):  
Victory O. Olutuase ◽  
Chinwe J. Iwu-Jaja ◽  
Cynthia P. Akuoko ◽  
Emmanuel O. Adewuyi ◽  
Vishnu Khanal
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Inventory Management ◽  
Scoping Review ◽  
Access To Medicines ◽  
Essential Medicines ◽  
Critical Systems ◽  
Supply Chain System ◽  
Effective Implementation ◽  
Development Goals

Abstract Background Medicines and vaccines supply chains represent critical systems for realising one of the major targets of the United Nations’ third Sustainable Development Goals (SDGs)—access to safe, effective, quality, and affordable essential medicines and vaccines, for all. However, evidence suggests the system is confronted with several challenges in many low-medium income countries, including Nigeria. This scoping review aims to summarize the available evidence on the challenges of medicines and vaccines supply chain system in Nigeria. Results We searched relevant databases including Scopus and Web of Science for studies published between January 2005 and August 2020 on the challenges associated with medicines and vaccines supply chain systems in Nigeria. Our findings implicate several factors including difficulty with medicines or vaccines selection, procurement, distribution, and inventory management. Others included poor storage infrastructure, financial constraints, insecurity, transportation challenges, inadequate human resources, weak, or poorly implemented policies. These challenges mostly resulted in stock-outs of essential medicines which notably got worsened during the current COVID-19 pandemic. Conclusion Our study is a wake-up call on the need to prioritise the critical sector of the supply chain systems for medicines and vaccines in Nigeria. Effective implementation of existing policies, improved security, strengthening of the health system through adequate budgetary allocations, and provision of infrastructure including regular availability of electricity are keys to surmounting the challenges and improving access to medicines or vaccines in Nigeria.

scholarly journals Optimization of Inventory Management to Prevent Drug Shortages in the Hospital Supply Chain

2021 ◽  
Vol 11 (6) ◽  
pp. 2726
Author(s):  
Tarek Abu Zwaida ◽  
Chuan Pham ◽  
Yvan Beauregard
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Supply And Demand ◽  
Critical Issue ◽  
Raw Material ◽  
Drug Shortage ◽  
Numerical Result ◽  
Management Optimization ◽  
Negative Impacts ◽  
Manufacturing Problems

Drug shortage is always a critical issue of inventory management in healthcare systems since it potentially invokes several negative impacts. In supply chain management, optimization goes hand-in-hand with inventory control to address several issues of the supply, management, and use of drugs. However, it is difficult to determine a shortage situation in a hospital due to multiple unpredictable reasons, such as manufacturing problems, supply and demand issues, and raw material problems. To avoid the shortage problem in a hospital, efficient inventory management is required to operate the system in a sustainable way and maximize the profit of the organization in the Hospital Supply Chain (HSC). In this work, we study a drug refilling optimization problem, a general model for drug inventory management in a hospital. We then investigate a Deep Reinforcement Learning (DRL) model to address this problem under an online solution that can automatically make a drug refilling decision in order to prevent a drug shortage. We further present a numerical result to verify the performance of the proposed algorithm, which outperforms the baselines (e.g., over-provisioning, ski-rental, and max-min) in terms of the refilling cost and the shortage rate.

scholarly journals Optimal Pricing, Advertising, Production, Inventory and Investing Policies in a Multi-Stage Sustainable Supply Chain

Energies ◽  
2021 ◽  
Vol 14 (22) ◽  
pp. 7544
Author(s):  
JiaLiang Pan ◽  
Chui-Yu Chiu ◽  
Kun-Shan Wu ◽  
Chih-Te Yang ◽  
Yen-Wen Wang
Keyword(s):  
Supply Chain ◽  
Capital Investment ◽  
Carbon Emission ◽  
Academic Research ◽  
Decision Makers ◽  
Sustainable Supply Chain ◽  
Supply Chain System ◽  
Numerical Examples ◽  
Multi Stage ◽  
Production Inventory

In this paper, the study of a sustainable production–inventory model with price and advertisement dependent on demand considering carbon emission reduction technology is investigated. The aim of this paper is to determine the optimal appropriate pricing, advertising, production, inventory, and capital investment decisions under various carbon emission policies to maximize the joint total profit of a multi-stage supply chain system. Various theoretical results and an algorithm are provided to verify and obtain the optimal solution of the problem. Further, the model is verified by numerical examples, and the robustness check of parameter variation is also analyzed. Finally, some management implications for decision makers are drawn from numerical examples. In summary, this study puts forward more realistic modeling hypothesis, which is beneficial to the academic research, and the research results can provide relevant decision makers with a model for managing a sustainable supply chain.

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