TY - GEN
T1 - Multi-objective control-relevant demand modeling for production and inventory control
AU - Schwartz, Jay D.
AU - Rivera, Daniel
PY - 2007/12/1
Y1 - 2007/12/1
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 identification, we present an approach for demand modeling based on data that relies on a control-relevant prefilter to tailor the emphasis of the fit to the intended purpose of the model, which is to provide forecast signals to tactical inventory management policies based on Model Predictive Control. Integrating the demand modeling and inventory control problems offers the opportunity to obtain reduced-order models that exhibit superior performance, with potentially lower user effort relative to traditional "open-loop" methods. A systematic approach to generating these weights and prefilters is presented and the benefits resulting from their use are demonstrated on representative production/inventory system case studies. A multi-objective formulation is developed that allows the user to emphasize minimizing inventory variance, minimizing starts variance, or their combination.
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 identification, we present an approach for demand modeling based on data that relies on a control-relevant prefilter to tailor the emphasis of the fit to the intended purpose of the model, which is to provide forecast signals to tactical inventory management policies based on Model Predictive Control. Integrating the demand modeling and inventory control problems offers the opportunity to obtain reduced-order models that exhibit superior performance, with potentially lower user effort relative to traditional "open-loop" methods. A systematic approach to generating these weights and prefilters is presented and the benefits resulting from their use are demonstrated on representative production/inventory system case studies. A multi-objective formulation is developed that allows the user to emphasize minimizing inventory variance, minimizing starts variance, or their combination.
UR - http://www.scopus.com/inward/record.url?scp=44449089621&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=44449089621&partnerID=8YFLogxK
U2 - 10.1109/COASE.2007.4341756
DO - 10.1109/COASE.2007.4341756
M3 - Conference contribution
AN - SCOPUS:44449089621
SN - 1424411548
SN - 9781424411542
T3 - Proceedings of the 3rd IEEE International Conference on Automation Science and Engineering, IEEE CASE 2007
SP - 710
EP - 715
BT - Proceedings of the 3rd IEEE International Conference on Automation Science and Engineering, IEEE CASE 2007
T2 - 3rd IEEE International Conference on Automation Science and Engineering, IEEE CASE 2007
Y2 - 22 September 2007 through 25 September 2007
ER -