scholarly journals Optimal Control Theory to Solve Production Inventory System in Supply Chain Management

2014 ◽  
Vol 6 (4) ◽  
Author(s):  
Hegazy Zaher ◽  
Taher Taha Zaki
Keyword(s):  
Optimal Control ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Control Theory ◽  
Optimal Control Theory ◽  
Inventory System ◽  
Chain Management ◽  
Production Inventory ◽  
Production Inventory System

scholarly journals Insider understanding of country development: a novel application of Optimal Control Theory and Data Envelopment Analysis for benchmarking performance of Chilean and Brazilian companies

2019 ◽  
Vol 3 (1) ◽  
pp. 47
Author(s):  
Paulo Nocera Alves Junior ◽  
Wilfredo F. Yushimito ◽  
Jorge Pereira Gude ◽  
Isotilia Costa Melo ◽  
Daisy Aparecida do Nascimento Rebelatto
Keyword(s):  
Optimal Control ◽  
Control Theory ◽  
Inventory Management ◽  
Optimal Control Theory ◽  
Future Research ◽  
Data Envelopment ◽  
New Approach ◽  
Inventory Costs ◽  
Production Inventory ◽  
Benchmarking Performance

Aim: If companies manage their inventory inefficiently, inventory costs can increase significantly due to shortages, overstocking, and risks. Inventory management is critical for company’s success which, in turn, impacts on countries’ development. This paper aims to investigate the efficiency of inventory control systems of companies from Brazil and Chile through Optimal Control Theory and Data Envelopment Analysis.Design/Research methods: Data was collected from Chilean and Brazilian companies covering different industries in which both countries are mostly dependent A new approach using OCT and DEA is applied for dealing with inventory, production, and demand in Dynamic DEA model to benchmark companies’ production-inventory systems.Conclusions/findings: The results show efficient companies among evaluated industries. Such companies are related mainly to Brazilian commerce and Chilean exports. Based on findings, it was possible to identify patterns and relationship among companies and its inventory management.Originality/value of the article: This paper fills a gap in studies including demand, production, and inventory in Dynamic DEA by using OCT to forewarn unrealistic results and observing companies’ behavior. Besides that, this approach is particularly useful for developing countries in this context, determining benchmarks for the most inefficient firms in each sector.Implications of the research: The results show (1) which companies should focus more on improving inventory management, (2) which companies should be used as benchmarks, and (3) it highlights the reasons of different performance of companies in each country.Limitations of the research: For future research, it is suggested including variables and analysis of social and environmental impacts.

Behavioral operations effect of fairness and unfairness concern in the decision of the supply chain production-inventory system

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kaifang Fu ◽  
Zhixiang Chen ◽  
Bhaba R. Sarker
Keyword(s):  
Supply Chain ◽  
Inventory System ◽  
Inventory Problem ◽  
Supply Chain System ◽  
Content Type ◽  
Behavioral Operations ◽  
Production Inventory ◽  
Optimal Ordering ◽  
Ordering Quantity ◽  
Production Inventory System

Purpose The purpose of this paper is to investigate the behavioral operations effect in production inventory decision of supply chain consisting of one manufacturer and one buyer, and analyze how the unfairness concerns impact the decision of production inventory in a supply chain system. Design/methodology/approach First, a model without the buyer’s unfairness concern is established; then, advantage unfairness concern and disadvantage unfairness concern behavior of buyer are taken into account in the production inventory system. The authors analyze how advantage unfairness concern and disadvantage unfairness concern impact the optimal decisions and channel coordination. Findings The result shows several important conclusions. First, the buyer’s optimal ordering quantity and expected utility show opposing trend when the buyer has advantage unfairness concern. Second, the stronger bargaining power of the manufacturer results in an increasing buyer’s optimal ordering quantity under the advantage unfairness concern case, but decreasing under the disadvantage unfairness concern case. Third, the supply chain production-inventory can be coordinated under advantage unfairness concern case, but cannot be coordinated under disadvantage unfairness concern. Practical implications The study can provide to practitioners with important implications that when the vendor or the buyer in supply chain wants to make the decision of inventory replenishment, taking unfairness concerns into account will lead to different results. Therefore, to effectively improve the operations performance of supply chain, partners of the supply chain should not only care about their own interest, but also need to consider the fairness concern of the other partner, reflecting the cooperation consciousness of supply chain management. Originality/value This paper contributes to the new field of creative management–behavioral operations, offering managerial implications for the decision and optimization of supply chain production-inventory problem.

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