Adaptive model predictive inventory controller for multiproduct warehouse system

An inventory control system has been developed for a distribution system consisting of a single multi-product warehouse serving a set of customers and purchasing products from multiple vendors. Purchase orders requesting multiple products are delivered to the warehouse in a process referred to as joint replenishment. The receipt of customer orders by the warehouse proceeds in order intervals and in order quantities that are subject to random fluctuations. The objective of Warehouse operation is to minimize the total cost while maintaining inventory levels within the warehouse capacity by adjusting the purchase order intervals and quantities. An adaptive model predictive control algorithm is developed using a periodic square wave model to represent the material flows. The adaptive concept incorporates a stabilized minimum variance control-type input calculation coupled with input/output stream parameter predictions. The boundedness of the control output under the suggested algorithm is mathematically proven under the assumption that disturbances in the orders are bounded. The effectiveness of the scheme was demonstrated using simulations. (C) 2014 Elsevier Ltd. All rights reserved.