Sliding mode control of periodic review perishable inventories with multiple suppliers and transportation losses

Abstract

Abstract. The purpose of this paper is to develop robust and computationally efficient supply chain management strategy ensuring fast reaction to the demand variations for periodic review perishable inventory systems. For that purpose, we apply a sliding mode approach and we propose a new discrete time warehouse management strategy. The strategy employs the sliding hyperplane appropriately designed to ensure a dead-beat performance of the closed loop system. Our strategy not only explicitly takes into account decay of goods stored in the warehouse (perishing inventories) but it also accounts for transportation losses which take place on the way from suppliers to the warehouse. The proposed strategy ensures full customers' demand satisfaction, minimizes the on-hand inventory volume and prevents from exceeding the warehouse capacity. This reflects the need of simultaneous minimization of the lost sales costs and inventory holding costs. Furthermore, the strategy ensures that the ordered quantities of goods are always non-negative and upper bounded. These favourable properties of the proposed strategy are formally stated as a lemma and three theorems and proved in the paper.

An Efficient Framework for Tactical Management in Supply Chain Systems

“…The incoming rate varies accordingly to production policies and process dynamical behavior. Change in the production rate involves several activities that require a delay time θ which appears in (1). Then its dynamics can be represented by: λi…”

“…The study and control of supply chains have arisen interest on the research community and enterprises because of implicit economic benefits [1]. The excellent reviews provided in [2], [3], [4], [5], [6] permit to underline the importance of automatic theory methods in the management of the different processes in the supply chain systems.…”

Bulletin of the Polish Academy of Sciences: Technical Sciences

“…Major challenges in the blood supply chains are connected to the shortage and wastage of blood products [8]. The main challenge of supply chains is keeping enough stock level to provide full product availability while minimizing the losses due to outdating [17,18]. There are also different approaches applied in perishability simulation.…”

On the Dynamic and Robust Management of Multi-Product Perishables, Multi-Echelon Demand Networks

“…The literature of operations management for perishable products reports a correlation between the shelf-life of the products and machine degradation. [1] develop robust and computationally efficient supply chain management strategy ensuring fast reaction to the demand variations for periodic review perishable inventory systems. For that purpose, they apply a sliding mode approach and they propose a new discrete time warehouse management strategy.…”