A heuristic procedure for the two-level control of serial supply chains under fuzzy customer demand

Ying Xie, Dobrila Petrovic, Keith Burnham

    Research output: Contribution to journalArticle

    73 Citations (Scopus)

    Abstract

    This paper presents a new hierarchical, two-level approach to inventory management and control in supply chains (SCs). A SC is viewed as a large-scale system that consists of production and inventory units, organised in a serial structure. It is supposed that the SC operates under uncertainty in customer demand, which is described by imprecise terms and modelled by fuzzy sets. Overall SC inventories control is achieved at two levels. First, a SC problem is decomposed into a number of subproblems related to its constituent parts, which form a followers level. Each follower is optimised independently according to its local objective. In order to improve overall SC performance, a leader level coordinates SC inventories control by modifying the optimisation subproblems at the followers level. This process is repeated iteratively until a satisfactory overall SC performance is achieved.
    Original languageEnglish
    Pages (from-to)37-50
    JournalInternational Journal of Production Economics
    Volume102
    Issue number1
    DOIs
    Publication statusPublished - Jul 2006

    Bibliographical note

    This paper is not available on the repository

    Keywords

    • Supply chain control
    • Inventory control
    • Multilevel coordination
    • Uncertainty
    • Fuzzy sets

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