The Implementation of the Distributed Model Predictive Controllers based on Orthonormal Functions for Supply Chains with Long Delays in Logistics Processes

Today, companies need to make use of appropriate patterns such as supply chain management system to gain and preserve a position in competitive world-wide market. Supply chain is a large scaled network consists of suppliers, manufacturers, warehouses, retailers and final customers which are in coordination with each other in order to transform products from raw materials into finished goods with optimal placement of inventory within the supply chain and minimizing operating costs in the face of demand fluctuations. Logistics is the management of the flow of goods between the point of origin and the point of consumption. One issue in Logistics management is the presence of possible long delays in goods transportation. In order to handle long delays, there are two possible solutions proposed in this paper. One solution is to use Model Predictive Controllers (MPCs) using orthonormal functions (Laguerre functions) and the other is to change supply chain model in which an integrator is imbedded. To this end, the two mentioned solutions will be implemented on a supply chain with long logistics delays and the results will be compared to classical MPC without using orthonormal basis and augmented model for different type of customer demand (constant, pulse and random demand).