Abstract
In this paper a predictive control strategy is applied to a periodic-review dynamic inventory system with deteriorating items. Given the current inventory level, we determine the optimal production rates to be implemented at the beginning of each of the following periods over the control horizon. The effectiveness of this approach is the use of future information of the inventory target level and the desired production rate, which are available, along the fixed horizon. The deterioration coefficient may be known or unknown and both cases are considered. In the case where it is unknown, the self-tuning predictive control is applied. The proposed control algorithms are illustrated by simulations.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Bounkhel M. and Tadj L. (2003). Optimal Control of Deteriorating Production Inventory Systems. Preprint.
Clarke D. and Mohtadi C. (1989). Properties of Generalized Predictive Control.Automatica 25, 859–875.
Diks E.B. and de Kok A.G. (1998). Optimal Control of a Divergent Multi-Echelon Inventory System.European Journal of Operational Research 111, 75–97.
Dobos I. (2003). Optimal Production-Inventory Strategies for a HMMS-Type Reverse Logistics System.International Journal of Production Economics 81–82, 351–360.
Elshafei A., Dumont G. and Elnajjar, A. (1995). Stability and Convergence of an Adaptive GPC Based on State Space Modelling.International Journal of Control 61, 193–210.
Goyal S.K. and Giri B.C. (2001). Recent Trends in Modeling of Deteriorating Inventory.European Journal of Operational Research 134, 1–16.
Hedjar R., Bounkhel M., and Tadj L. (2003). Self-Tuning Optimal Control of Periodic-review Production Inventory Systems with Deteriorating Items. Preprint.
Khemlnitsky E. and Gerchak Y. (2002). Optimal Control Approach to Production Systems with Inventory Level Dependent Demand.IEEE Transactions on Automatic Control 47, 289–292.
Kiesmüller G.P. (2003). Optimal Control of a One Product Recovery System with Lead Times.International Journal of Production Economics 81–82, 333–340.
Nahmias S. (1982). Perishable Inventory Theory: A Review.Operations Research 30, 680–708.
Raafat F. (1991). Survey of Literature on Continuously Deteriorating Inventory Models.Journal of the Operational Research Society 42, 27–37.
Riddalls C.E. and Bennett S. (2001). The Optimal Control of Batched Production and its Effect on Demand Amplification.International Journal of Production Economics 72, 159–168.
Salama Y. (2000). Optimal Control of a Simple Manufacturing System with Restarting Costs.Operations Research Letters 26, 9–16.
Tadj L., Bounkhel M., and Benhadid Y. (2003). Optimal Control of a Production Inventory System with Deteriorating Items. Preprint.
Zhang Q., Yin G.G. and Boukas E.-K. (2001). Optimal Control of a Marketing-Production System.IEEE Transactions on Automatic Control 46, 416–427.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Hedjar, R., Bounkhel, M. & Tadj, L. Predictive control of periodic-review production inventory systems with deteriorating items. Top 12, 193–208 (2004). https://doi.org/10.1007/BF02578931
Received:
Accepted:
Issue Date:
DOI: https://doi.org/10.1007/BF02578931
Key Words
- Inventory systems
- periodic-review
- deterioration
- predictive control
- parameter estimation
- self-tuning controller
- target