Abstract
This chapter first establishes the sufficient and necessary conditions of the system stability for the basic serial stochastic supply chain in Chap. 2 using the matrix analytic method. The main results in Chap. 2 such as the structural characteristics of the optimal integrated ordering and production control policy are then extended to the long-run average cost case. Based upon the characteristics of the optimal policies, simple threshold-type control policies are developed for both the basic supply chains in Chap. 2 and the more general supply chains in Chap. 3. The performance of the proposed threshold control policies are evaluated and compared with the optimal policies in a range of scenarios. Threshold control policies for multistage serial supply chains are also presented.
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Song, DP. (2013). Threshold-Type Control Policies and System Stability for Serial Supply Chain Systems. In: Optimal Control and Optimization of Stochastic Supply Chain Systems. Advances in Industrial Control. Springer, London. https://doi.org/10.1007/978-1-4471-4724-4_8
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DOI: https://doi.org/10.1007/978-1-4471-4724-4_8
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