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

Ying Xie; Dobrila Petrovic; Keith Burnham

doi:10.1016/j.ijpe.2005.01.016

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

Ying Xie, Dobrila Petrovic, Keith Burnham

School of Mechanical, Aerospace and Automotive Engineering

Research output: Contribution to journal › Article

68 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 language	English
Pages (from-to)	37-50
Journal	International Journal of Production Economics
Volume	102
Issue number	1
DOIs	https://doi.org/10.1016/j.ijpe.2005.01.016
Publication status	Published - 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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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.",

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AB - 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.

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