Discrete Control Theory


Using block diagrams, z-transforms and Tsypkin’s relation I show how to obtain the variances of the orders and inventory levels maintained by the proportional order-up-to policy. Assuming demand is uncorrelated and normally distributed, a proportional feedback controller equal to the golden ratio minimizes a weighted sum of the variances. One may also minimize the inventory and capacity costs maintained by this replenishment policy.

Mar 22, 2019 14:00
Cardiff, United Kingdom
Stephen Disney
Stephen Disney

My research interests involve the application of control theory and statistical techniques to operations management and supply chain scenarios to investigate their dynamic, stochastic, and economic performance.