# One Step Ahead Optimal Control of a Single Echelon Supply Chain using Mathematical Programming

### Amit Bhaya, Eugenius Kaszkurewicz, Luiz Roth

#### Abstract

A single echelon supply chain model problem, consisting of a store with known inventory and shipping capacities, a known delivery delay or lead time and a random demand for a product at the store is formulated as an optimal control problem. In the practical case when only current and past demands are known, using the concept of one step ahead optimal control, the problem is reformulated as the mathematical programming problem of maximizing economic value added (EVA), subject to the dynamics and constraints, such as inventory size. Illustrative examples are given and performance indices are proposed to evaluate the performance of the proposed controller, which exhibits good efficiency and no bullwhip effect.

Download#### Paper Citation

#### in Harvard Style

Bhaya A., Kaszkurewicz E. and Roth L. (2020). **One Step Ahead Optimal Control of a Single Echelon Supply Chain using Mathematical Programming**.In *Proceedings of the 9th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,* ISBN 978-989-758-396-4, pages 233-240. DOI: 10.5220/0009130702330240

#### in Bibtex Style

@conference{icores20,

author={Amit Bhaya and Eugenius Kaszkurewicz and Luiz Roth},

title={One Step Ahead Optimal Control of a Single Echelon Supply Chain using Mathematical Programming},

booktitle={Proceedings of the 9th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,},

year={2020},

pages={233-240},

publisher={SciTePress},

organization={INSTICC},

doi={10.5220/0009130702330240},

isbn={978-989-758-396-4},

}

#### in EndNote Style

TY - CONF

JO - Proceedings of the 9th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,

TI - One Step Ahead Optimal Control of a Single Echelon Supply Chain using Mathematical Programming

SN - 978-989-758-396-4

AU - Bhaya A.

AU - Kaszkurewicz E.

AU - Roth L.

PY - 2020

SP - 233

EP - 240

DO - 10.5220/0009130702330240