Optimization of operations in supply chain systems using hybrid systems approach and model predictive control

This paper addresses the optimal operation of multiproduct supply chain systems, using Model Predictive Control (MPC). The supply chain considered in this paper is a hybrid system governed by continuous/discrete dynamics and logic rules. For optimization purposes, it is modeled within the framework of the Mixed Logical Dynamical (MLD) system and the overall profit is optimized through MPC. Dynamic responses of the different nodes of the supply chain are analyzed when the supply chain is subjected to unknown but measurable changes in customer demand. The performances of a centralized decision-making scheme and two types of decentralized decision making schemes are compared.