Design of Distributed Optimal Adaptive Receding Horizon Control for Supply Chain of Realistic Size under Demand Disturbances

Supply chain networks are interconnection and dynamics of a demand network. Example subsystems, referred to as stages, include raw materials, distributors of the raw materials, manufacturers, distributors of the manufactured products, retailers, and customers. The main objectives of the control strategy for the supply chain network can be summarized as follows: (i) maximize customer satisfaction, and (ii) minimize supply chain operating costs. In this paper, we applied receding horizon control (RHC) method to a set of large scale supply chains of realistic size under demand disturbances adaptively. Also in order to increase the robustness of the system, we added a move suppression term to cost function.