Inventory control of supply chains: Mitigating the bullwhip effect by centralized and decentralized Internal Model Control approaches

Carlos Andres Garcia Salcedo, Asier Ibeas Hernandez, Ramón Vilanova, Jorge Herrera Cuartas

Research output: Contribution to journalArticleResearchpeer-review

27 Citations (Scopus)

Abstract

In this paper, a two-degrees-of-freedom Internal Model Control structure is incorporated in production inventory control for a supply chain system. This scheme presents an intuitive and simple parametrization of controllers, where inventory target tracking and disturbance (demand) rejection in the inventory level problems are treated separately. Moreover, considering that the lead times are known, this scheme presents a perfect compensation of the delay making the stabilization problem easier to handle. This control structure is formulated for a serial supply chain in two ways (by using a centralized and a decentralized control approach). The behavior of these inventory control strategies is analyzed in the entire supply chain. Analytical tuning rules for bullwhip effect avoidance are developed for both strategies. The results of controller evaluations demonstrate that centralized control approach enhances the behavior with respect to the inventory target tracking, demand rejection and bullwhip effect in the supply chain systems. © 2012 Elsevier B.V. All rights reserved.
Original languageEnglish
Pages (from-to)261-272
JournalEuropean Journal of Operational Research
Volume224
DOIs
Publication statusPublished - 16 Jan 2013

Keywords

  • Internal Model Control
  • Inventory control
  • Supply chain management
  • The bullwhip effect

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