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Predictive control of periodic-review production inventory systems with deteriorating items
Authors:R Hedjar  M Bounkhel  L Tadj
Institution:(1) Department of Computer Engineering, King Saud University, College of Computer and Information Sciences, P.O. Box 5178, 11453 Riyadh, Saudi Arabia;(2) Department of Mathematics, King Saud University, College of Science, P.O. Box 2455, 11451 Riyadh, Saudi Arabia;(3) Department of Statistics and Operations Research, King Saud University, College of Science, P.O. Box 2455, 11451 Riyadh, Saudi Arabia
Abstract:In this paper a predictive control strategy is applied to a periodic-review dynamic inventory system with deteriorating items. Given the current inventory level, we determine the optimal production rates to be implemented at the beginning of each of the following periods over the control horizon. The effectiveness of this approach is the use of future information of the inventory target level and the desired production rate, which are available, along the fixed horizon. The deterioration coefficient may be known or unknown and both cases are considered. In the case where it is unknown, the self-tuning predictive control is applied. The proposed control algorithms are illustrated by simulations.
Keywords:Inventory systems  periodic-review  deterioration  predictive control  parameter estimation  self-tuning controller  target
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