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Integrated supply chain planning based on a combined application of operations research and optimal control

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Abstract

In operations research (OR), remarkable advancements have been achieved in the domain of supply chain (SC) planning for the last two decades. In recent years, the works on SCs have been broadened to integrate production and transportation planning along with covering the SC dynamics and execution control. Based on a combination of fundamental results of the modern optimal program control (OPC) theory with the optimization methods of OR, an original integrated model of production and transportation planning in the SC is developed. It is shown explicitly how to distribute static and dynamics variables and constraints among the OR and OPC models and interconnect static elements in optimization linear programming model with corresponding dynamic elements in OPC model. This makes it possible to integrate SC production and transportation planning and execution taking into account process non-stationarity caused by structure dynamics. In doing so, the developed framework contributes to the advancing decision-making support for supply chain management (SCM). Conventionally isolated SCM problems may be considered from a different viewpoint and new integrated problems may be revealed, stated and solved due to the mutual enriching of OR and OPC techniques.

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Abbreviations

SC:

Supply chain

SCM:

Supply chain management

OPC:

Optimal program control

OR:

Operations research

CT:

Control theory

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Authors and Affiliations

  1. Faculty of Economics and Business Administration, Chemnitz University of Technology, 09107, Chemnitz, Germany

    Dmitry Ivanov & Joachim Kaeschel

  2. Russian Academy of Science, St. Petersburg Institute of Informatics and Automation, 39, 14 Linia, VO, St. Petersburg, 199178, Russia

    Boris Sokolov

Authors
  1. Dmitry Ivanov
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  2. Boris Sokolov
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  3. Joachim Kaeschel
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Correspondence to Dmitry Ivanov.

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Ivanov, D., Sokolov, B. & Kaeschel, J. Integrated supply chain planning based on a combined application of operations research and optimal control. Cent Eur J Oper Res 19, 299–317 (2011). https://doi.org/10.1007/s10100-010-0185-0

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