Computationally tractable inventory control for large-scale reverse supply chains

P. Krishnamurthy, F. Khorrami, D. Schoenwald

Research output: Chapter in Book/Report/Conference proceedingConference contribution


We propose a new inventory control technique for large-scale bidirectional (or closed-loop) supply chains including repairs. It is well-known that available optimization techniques are computationally intractable for bidirectional stochastic supply chains and also necessitate several simplifying assumptions. In contrast, the proposed approach is an adaptive scheme which scales well to practically interesting large-scale multi-item supply chains. Furthermore, practical issues such as stochastic transport delays, manufacturing times, and repair times and probabilistic characterization of part repair success are handled in a unified framework. The control scheme is based on a hierarchical two-level architecture comprised of an adaptive set-point generator and a lower-level order-up-to policy. An application to aircraft supply chains involving multiple OEMs, depots, bases, squadrons, and planes is also investigated.

Original languageEnglish (US)
Title of host publicationProceedings of the 2006 American Control Conference
PublisherInstitute of Electrical and Electronics Engineers Inc.
Number of pages6
ISBN (Print)1424402107, 9781424402106
StatePublished - 2006
Event2006 American Control Conference - Minneapolis, MN, United States
Duration: Jun 14 2006Jun 16 2006

Publication series

NameProceedings of the American Control Conference
ISSN (Print)0743-1619


Other2006 American Control Conference
Country/TerritoryUnited States
CityMinneapolis, MN

ASJC Scopus subject areas

  • Electrical and Electronic Engineering


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