A Control Theoretic Approach to Inventory Systems Management

Abstract

Inventory systems involve information and materials and#64258;ow. Eand#64259;cient inventory man- newlineagement plays a key role, in the success of production and goods distribution in newlinethe supply chain. Diand#64256;erential or diand#64256;erence equations are used in control sys- newlinetems engineering to represent system dynamics. Based on the analogy between newlineservomechanism theory and production systems, Nobel laureate Simon in 1950 newlinerepresented production inventory system in block diagram and analyzed it using newlineLaplace transform. It was further extended to discrete time framework, due to newlinethe inherent discrete nature of these systems. The work of Simon and few more newlineresearchers laid the foundation of using control theory tools to analyze inventory newlinesystems. Many modiand#64257;cations and improvements on this basic model were further newlinecontinued in the subsequent years. This mainly included understanding the feed newlineforward and feedback paths, the work in progress or the pipeline policy, bullwhip newlinein the supply chain, vendor managed inventory etc. With the advancement in newlinequick information and materials and#64258;ow and the lifestyle followed by the people glob- newlineally, the need for prompt and eand#64256;ective solutions in the area attracted the attention newlineof the researchers. newline