Abstract
In this paper, an adaptation method for the online identification of lead time is incorporated in production–inventory control systems. Based on the lead time estimate, the tuning parameters are updated in real time to improve the efficiency of the system. Combination of the adaptive scheme with a proportional control law is able to eliminate the inventory drift that appears when the actual lead time is not known in advance or when it varies with time. A detailed analysis is provided for the proposed production–inventory system, including a stability analysis and the quantification of its bullwhip effect. Several examples and comparison with state-of-the-art alternative approaches illustrate the efficiency of the system.
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