Decentralized inventory control for large-scale reverse supply chains: A computationally tractable approach

Prashanth Krishnamurthy, Farshad Khorrami, David Schoenwald

Research output: Contribution to journalArticle

Abstract

In this paper, we consider a new inventory control technique for large-scale supply chains including repairs. The part flow is bidirectional with broken parts propagated upstream for repair. It is well known that available optimization techniques for inventory control for bidirectional stochastic supply chains are computationally intractable and also necessitate several simplifying assumptions. In contrast, the proposed approach is an adaptive scheme that scales well to practically interesting large-scale multiitem supply chains. Furthermore, practical issues such as stochastic transport delays, manufacturing times, and repair times and probabilistic characterization of part repair success are handled in a unified framework. The control scheme is based on a hierarchical two-level architecture that comprises an adaptive set point generator and a lower-level order-up-to policy. An application to aircraft supply chains involving multiple original equipment manufacturers (OEMs), depots, bases, squadrons, and planes is also investigated.

Original languageEnglish (US)
Pages (from-to)551-561
Number of pages11
JournalIEEE Transactions on Systems, Man and Cybernetics Part C: Applications and Reviews
Volume38
Issue number4
DOIs
StatePublished - Jul 2008

Fingerprint

Inventory control
Supply chains
Repair
Aircraft

Keywords

  • Decentralized control
  • Inventory control
  • Large-scale systems
  • Reverse supply chain

ASJC Scopus subject areas

  • Control and Systems Engineering
  • Artificial Intelligence
  • Human-Computer Interaction
  • Computer Science Applications
  • Computational Theory and Mathematics

Cite this

Decentralized inventory control for large-scale reverse supply chains : A computationally tractable approach. / Krishnamurthy, Prashanth; Khorrami, Farshad; Schoenwald, David.

In: IEEE Transactions on Systems, Man and Cybernetics Part C: Applications and Reviews, Vol. 38, No. 4, 07.2008, p. 551-561.

Research output: Contribution to journalArticle

@article{7f48e2d7823d4f1685ef5642246921f9,
title = "Decentralized inventory control for large-scale reverse supply chains: A computationally tractable approach",
abstract = "In this paper, we consider a new inventory control technique for large-scale supply chains including repairs. The part flow is bidirectional with broken parts propagated upstream for repair. It is well known that available optimization techniques for inventory control for bidirectional stochastic supply chains are computationally intractable and also necessitate several simplifying assumptions. In contrast, the proposed approach is an adaptive scheme that scales well to practically interesting large-scale multiitem supply chains. Furthermore, practical issues such as stochastic transport delays, manufacturing times, and repair times and probabilistic characterization of part repair success are handled in a unified framework. The control scheme is based on a hierarchical two-level architecture that comprises an adaptive set point generator and a lower-level order-up-to policy. An application to aircraft supply chains involving multiple original equipment manufacturers (OEMs), depots, bases, squadrons, and planes is also investigated.",
keywords = "Decentralized control, Inventory control, Large-scale systems, Reverse supply chain",
author = "Prashanth Krishnamurthy and Farshad Khorrami and David Schoenwald",
year = "2008",
month = "7",
doi = "10.1109/TSMCC.2007.913906",
language = "English (US)",
volume = "38",
pages = "551--561",
journal = "IEEE Transactions on Systems, Man and Cybernetics Part C: Applications and Reviews",
issn = "1094-6977",
publisher = "Institute of Electrical and Electronics Engineers Inc.",
number = "4",

}

TY - JOUR

T1 - Decentralized inventory control for large-scale reverse supply chains

T2 - A computationally tractable approach

AU - Krishnamurthy, Prashanth

AU - Khorrami, Farshad

AU - Schoenwald, David

PY - 2008/7

Y1 - 2008/7

N2 - In this paper, we consider a new inventory control technique for large-scale supply chains including repairs. The part flow is bidirectional with broken parts propagated upstream for repair. It is well known that available optimization techniques for inventory control for bidirectional stochastic supply chains are computationally intractable and also necessitate several simplifying assumptions. In contrast, the proposed approach is an adaptive scheme that scales well to practically interesting large-scale multiitem supply chains. Furthermore, practical issues such as stochastic transport delays, manufacturing times, and repair times and probabilistic characterization of part repair success are handled in a unified framework. The control scheme is based on a hierarchical two-level architecture that comprises an adaptive set point generator and a lower-level order-up-to policy. An application to aircraft supply chains involving multiple original equipment manufacturers (OEMs), depots, bases, squadrons, and planes is also investigated.

AB - In this paper, we consider a new inventory control technique for large-scale supply chains including repairs. The part flow is bidirectional with broken parts propagated upstream for repair. It is well known that available optimization techniques for inventory control for bidirectional stochastic supply chains are computationally intractable and also necessitate several simplifying assumptions. In contrast, the proposed approach is an adaptive scheme that scales well to practically interesting large-scale multiitem supply chains. Furthermore, practical issues such as stochastic transport delays, manufacturing times, and repair times and probabilistic characterization of part repair success are handled in a unified framework. The control scheme is based on a hierarchical two-level architecture that comprises an adaptive set point generator and a lower-level order-up-to policy. An application to aircraft supply chains involving multiple original equipment manufacturers (OEMs), depots, bases, squadrons, and planes is also investigated.

KW - Decentralized control

KW - Inventory control

KW - Large-scale systems

KW - Reverse supply chain

UR - http://www.scopus.com/inward/record.url?scp=46849102943&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=46849102943&partnerID=8YFLogxK

U2 - 10.1109/TSMCC.2007.913906

DO - 10.1109/TSMCC.2007.913906

M3 - Article

AN - SCOPUS:46849102943

VL - 38

SP - 551

EP - 561

JO - IEEE Transactions on Systems, Man and Cybernetics Part C: Applications and Reviews

JF - IEEE Transactions on Systems, Man and Cybernetics Part C: Applications and Reviews

SN - 1094-6977

IS - 4

ER -