Integrated Adaptive Design and Planning of Supply Networks

In recent years, the works on supply chain management (SCM) have been broadened from isolated static models of supply chain design (SCD) and planning (SCP) to integrated SCD and SCP models. This paper develops a framework for integrated SCD and SCP on the basis of adaptation principles and regarding SC execution dynamics. To achieve this integration, static models of SCD are brought in correspondence to the dynamic models of SCP and control. The adaptive feedback loops between the planning and execution models are established. It becomes possible if traditional operations research (OR) techniques are extended by optimal control theory. We illustrate the general framework with the help of a modelling complex. We show explicitly how to distribute static and dynamics variables and constraints of SCD and SCP by interconnecting static elements in SCD optimization linear programming model with corresponding SCP dynamic elements in optimal control model. This makes it possible to consider conventionally isolated SCD and SCP problems taking into account non-stationarity of supply chain execution along with the adaptive control within a conceptually and mathematically integrated framework. In doing so, the developed framework contributes to the advancing decision-making support for SCM on the basis of interrelating planning and execution levels instead of generating optimal solutions that fail in a real perturbed execution environment.

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