Control-relevant estimation of demand models for closed-loop control of a production-inventory system

Jay D. Schwartz, Daniel Rivera

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Scopus citations

Abstract

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.

Original languageEnglish (US)
Title of host publicationProceedings of the 48th IEEE Conference on Decision and Control held jointly with 2009 28th Chinese Control Conference, CDC/CCC 2009
Pages416-421
Number of pages6
DOIs
StatePublished - Dec 1 2009
Event48th IEEE Conference on Decision and Control held jointly with 2009 28th Chinese Control Conference, CDC/CCC 2009 - Shanghai, China
Duration: Dec 15 2009Dec 18 2009

Publication series

NameProceedings of the IEEE Conference on Decision and Control
ISSN (Print)0191-2216

Other

Other48th IEEE Conference on Decision and Control held jointly with 2009 28th Chinese Control Conference, CDC/CCC 2009
CountryChina
CityShanghai
Period12/15/0912/18/09

Keywords

  • Control-relevance
  • Demand modeling
  • Internal model control
  • Production control
  • Supply chain management

ASJC Scopus subject areas

  • Control and Systems Engineering
  • Modeling and Simulation
  • Control and Optimization

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    Schwartz, J. D., & Rivera, D. (2009). Control-relevant estimation of demand models for closed-loop control of a production-inventory system. In Proceedings of the 48th IEEE Conference on Decision and Control held jointly with 2009 28th Chinese Control Conference, CDC/CCC 2009 (pp. 416-421). [5400515] (Proceedings of the IEEE Conference on Decision and Control). https://doi.org/10.1109/CDC.2009.5400515