The Inventory Control Problem for a Supply Chain With a Mixed Type of Demand Uncertainty

Abstract

This paper is concerned with a dynamic inventory control system described by a network model where the nodes are warehouses and the arcs represent production and distribution activities. We assume that an uncertain demand may take any value in an assigned interval and we allow that the system is disturbed by noise inputs. These assumptions yield a model with a mix of interval and stochastic demand uncertainties. We use the method of model predictive control to derive the control strategy. To deal with interval uncertainty we use the interval analysis tools and act according to the interval analysis theory. The developed results are illustrated using a numerical example.