TY - GEN
T1 - Control-relevant estimation of demand models for closed-loop control of a production-inventory system
AU - Schwartz, Jay D.
AU - Rivera, Daniel
PY - 2009
Y1 - 2009
N2 - The development of control-oriented decision policies for inventory management in supply chains has received considerable interest in recent years, and demand modeling to supply forecasts for these policies is an important component of an effective solution to this problem. Drawing from the problem of control-relevant parameter estimation, this paper presents an approach for demand modeling in a production-inventory system that relies on a control-relevant weight to tailor the emphasis of the fit to the intended purpose of the model, which is to provide forecast signals tactical inventory management policies based on Internal Model Control. The formulation is multi-objective in nature, allowing the user to emphasize inventory variation, starts change variation, or a weighted combination. By integrating the demand modeling and inventory control problems, it is possible to obtain reduced-order demand models that exhibit superior performance. A systematic approach for generating these weights is presented and the benefits resulting from their use demonstrated on a representative production-inventory system case study.
AB - The development of control-oriented decision policies for inventory management in supply chains has received considerable interest in recent years, and demand modeling to supply forecasts for these policies is an important component of an effective solution to this problem. Drawing from the problem of control-relevant parameter estimation, this paper presents an approach for demand modeling in a production-inventory system that relies on a control-relevant weight to tailor the emphasis of the fit to the intended purpose of the model, which is to provide forecast signals tactical inventory management policies based on Internal Model Control. The formulation is multi-objective in nature, allowing the user to emphasize inventory variation, starts change variation, or a weighted combination. By integrating the demand modeling and inventory control problems, it is possible to obtain reduced-order demand models that exhibit superior performance. A systematic approach for generating these weights is presented and the benefits resulting from their use demonstrated on a representative production-inventory system case study.
KW - Control-relevance
KW - Demand modeling
KW - Internal model control
KW - Production control
KW - Supply chain management
UR - http://www.scopus.com/inward/record.url?scp=77950816791&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=77950816791&partnerID=8YFLogxK
U2 - 10.1109/CDC.2009.5400515
DO - 10.1109/CDC.2009.5400515
M3 - Conference contribution
AN - SCOPUS:77950816791
SN - 9781424438716
T3 - Proceedings of the IEEE Conference on Decision and Control
SP - 416
EP - 421
BT - Proceedings of the 48th IEEE Conference on Decision and Control held jointly with 2009 28th Chinese Control Conference, CDC/CCC 2009
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 48th IEEE Conference on Decision and Control held jointly with 2009 28th Chinese Control Conference, CDC/CCC 2009
Y2 - 15 December 2009 through 18 December 2009
ER -