Dampening bullwhip effect of order-up-to inventory strategies via an optimal control method

In this paper, we consider the bullwhip effect problem of an Order-Up-To (OUT) inventory strategy for a supply chain system. We firstly establish a new discrete-time dynamical model which is suitable to describe the OUT inventory strategy. Then, we analyze the bullwhip effect for the dynamical model...

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Main Authors: Xu, Honglei, Sui, P., Zhou, Guanglu, Caccetta, Louis
Format: Journal Article
Published: American Institute of Mathematical Sciences 2013
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/32698
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author Xu, Honglei
Sui, P.
Zhou, Guanglu
Caccetta, Louis
author_facet Xu, Honglei
Sui, P.
Zhou, Guanglu
Caccetta, Louis
author_sort Xu, Honglei
building Curtin Institutional Repository
collection Online Access
description In this paper, we consider the bullwhip effect problem of an Order-Up-To (OUT) inventory strategy for a supply chain system. We firstly establish a new discrete-time dynamical model which is suitable to describe the OUT inventory strategy. Then, we analyze the bullwhip effect for the dynamical model of the supply chain system. We thus transform the bullwhip effect's dampening problem to a discrete-time optimal control problem. By using the Pontryagin's maximum principle, we compute the corresponding optimal control and obtain the optimal manufacturer productivity of goods. Finally, we carry out numerical simulation experiments to show that the devised optimal control strategy is useful to dampen the bullwhip effect which always happens in the supply chain system.
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institution Curtin University Malaysia
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last_indexed 2025-11-14T08:29:14Z
publishDate 2013
publisher American Institute of Mathematical Sciences
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spelling curtin-20.500.11937-326982019-02-19T05:35:39Z Dampening bullwhip effect of order-up-to inventory strategies via an optimal control method Xu, Honglei Sui, P. Zhou, Guanglu Caccetta, Louis Bullwhip effect optimal control order-up-to inventory strategy In this paper, we consider the bullwhip effect problem of an Order-Up-To (OUT) inventory strategy for a supply chain system. We firstly establish a new discrete-time dynamical model which is suitable to describe the OUT inventory strategy. Then, we analyze the bullwhip effect for the dynamical model of the supply chain system. We thus transform the bullwhip effect's dampening problem to a discrete-time optimal control problem. By using the Pontryagin's maximum principle, we compute the corresponding optimal control and obtain the optimal manufacturer productivity of goods. Finally, we carry out numerical simulation experiments to show that the devised optimal control strategy is useful to dampen the bullwhip effect which always happens in the supply chain system. 2013 Journal Article http://hdl.handle.net/20.500.11937/32698 10.3934/naco.2013.3.655 American Institute of Mathematical Sciences fulltext
spellingShingle Bullwhip effect
optimal control
order-up-to inventory strategy
Xu, Honglei
Sui, P.
Zhou, Guanglu
Caccetta, Louis
Dampening bullwhip effect of order-up-to inventory strategies via an optimal control method
title Dampening bullwhip effect of order-up-to inventory strategies via an optimal control method
title_full Dampening bullwhip effect of order-up-to inventory strategies via an optimal control method
title_fullStr Dampening bullwhip effect of order-up-to inventory strategies via an optimal control method
title_full_unstemmed Dampening bullwhip effect of order-up-to inventory strategies via an optimal control method
title_short Dampening bullwhip effect of order-up-to inventory strategies via an optimal control method
title_sort dampening bullwhip effect of order-up-to inventory strategies via an optimal control method
topic Bullwhip effect
optimal control
order-up-to inventory strategy
url http://hdl.handle.net/20.500.11937/32698