Dynamic optimization approach for integrated supplier selection and tracking control of single product inventory system with product discount

The Indonesian Operations Research Association (IORA) - International Conference on Operations Research 2016

Sutrisno^1 ; Widowati^1 ; Heru Tjahjana, R.^1

Department of Mathematics, Diponegoro University, Jl. Prof. Soedarto, SH, Tembalang, Semarang

50275, Indonesia^1

关键词: Dynamic optimization;    Minimal total costs;    Numerical experiments;    Piece-wise linear functions;    Reference trajectories;    Supplier selection;    Tracking control problem;    Tracking controls;   

Others  :  https://iopscience.iop.org/article/10.1088/1757-899X/166/1/012028/pdf
DOI  :  10.1088/1757-899X/166/1/012028

来源: IOP

【 摘 要 】

In this paper, we propose a mathematical model in the form of dynamic/multi-stage optimization to solve an integrated supplier selection problem and tracking control problem of single product inventory system with product discount. The product discount will be stated as a piece-wise linear function. We use dynamic programming to solve this proposed optimization to determine the optimal supplier and the optimal product volume that will be purchased from the optimal supplier for each time period so that the inventory level tracks a reference trajectory given by decision maker with minimal total cost. We give a numerical experiment to evaluate the proposed model. From the result, the optimal supplier was determined for each time period and the inventory level follows the given reference well.