Multi-objective control-relevant demand modeling for production and inventory control

Jay D. Schwartz, Daniel Rivera

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

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 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.

Original languageEnglish (US)
Title of host publicationProceedings of the 3rd IEEE International Conference on Automation Science and Engineering, IEEE CASE 2007
Pages710-715
Number of pages6
DOIs
StatePublished - Dec 1 2007
Event3rd IEEE International Conference on Automation Science and Engineering, IEEE CASE 2007 - Scottsdale, AZ, United States
Duration: Sep 22 2007Sep 25 2007

Publication series

NameProceedings of the 3rd IEEE International Conference on Automation Science and Engineering, IEEE CASE 2007

Other

Other3rd IEEE International Conference on Automation Science and Engineering, IEEE CASE 2007
CountryUnited States
CityScottsdale, AZ
Period9/22/079/25/07

ASJC Scopus subject areas

  • Control and Systems Engineering
  • Electrical and Electronic Engineering

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  • Cite this

    Schwartz, J. D., & Rivera, D. (2007). Multi-objective control-relevant demand modeling for production and inventory control. In Proceedings of the 3rd IEEE International Conference on Automation Science and Engineering, IEEE CASE 2007 (pp. 710-715). [4341756] (Proceedings of the 3rd IEEE International Conference on Automation Science and Engineering, IEEE CASE 2007). https://doi.org/10.1109/COASE.2007.4341756