Applicability of optimal control theory to adaptive supply chain planning and scheduling

Decisions in supply chain (SC) planning and control are interconnected and depend on tackling SC uncertainty and dynamics. In this paper, we investigate the applicability of optimal control theory to SC planning and scheduling. The methodology of this paper is based on the literature analysis, fundamentals of control and systems theory, and our own elaborations. We describe the important issues and perspectives that delineate dynamics in SCs, identify and systemize different streams in application of control theory to production, logistics, and SC management (SCM) in the period from 1960-2011. We derive some classifications, perform a critical analysis, and discuss future research avenues. Some drawbacks and missing links in the literature are pointed out. Several crucial application areas of control theory to SCM are discussed. Subsequently, we concentrate on optimal program control, challenges and advantages of its application in the SCM. We conclude that with the help of control theory, robustness, adaptability, and resilience of SCs can be investigated in their consistency with operations planning and execution control within a conceptually and mathematically integrated framework. However, although SCs resemble control systems, they have some peculiarities which do not allow a direct application of control theoretic methods. In this setting, we argue for further development of interdisciplinary approaches to SC optimization. We argue for an extended co-operation between control experts and SC managers that has the potential to introduce more realism to the dynamic planning and models and improve SC planning and control policies.