Supply Chain Management by H-Infinity Control

In this paper, a H _infin control technique is proposed for the management of a supply chain (SC) model linearized about nominal operating conditions. The performance considered is a weighted H _infin norm comprising the inventory and the orders placed by each site, hence controlling the bullwhip effect together with local management costs. It is shown how the optimization of local costs at each site is related to the performance of the whole chain and a decentralized control methodology is proposed based on this relation.