HMS 2009 Proceeding

Imc control approach for supply chain management

Authors:   Carlos Andrés García, Ramón Vilanova , Carles Pedret

Abstract

In this work, a discrete time series model of a supply chain system is derived using material balances and information flow. Transfer functions for each unit in the supply chain are obtained by z-transform. The entire chain can be modelled by combining these transfer functions into a close loop transfer function for the network. Controllers are designed using frequency analysis. The bullwhip effect, magnification of amplitudes of demand perturbations from the tail to upstream levels of the supply chain, is a very important phenomenon for supply chain systems. Furthermore, we show that by implementing a proportional integral or an IMC inventory control and properly synthesizing the controller parameters, we can effectively suppress the bullwhip effect. Moreover, the IMC control structure is superior in meeting customer demand due to its better tracking of long term trends of customer demand.

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