Simulation Scheme for Centralized Supply Chain Operation Based on Model Predictive Control Strategy

A dynamic quantitative model for the supply chain operation process was established to obtain an integrative decision-making solution schema based on model predictive control strategy, and a revision to the optimization objective was made to ensure that the optimal solution minimizes overall costs, while it satisfies a certain customer demand satisfactory (CDS) level; Furthermore, the Value-at-Risk (VaR) inventory management strategy was inducted to measure and control the inventory risk quantitatively, and a dynamic rolling decision-making schema for supply chain operation was proposed under uncertainty of demands. The GAMS simulation results prove the efficiency of the algorithm.