conference-paper Closed Access EN 2010-06-01

Inventory control and LQG: Connections and extensions

Wai Kit Ong, Elizabeth J. Durango‐Cohen, Donald J. Chmielewski

Unknown, pp. 4391–4396 (2010)

Illinois Institute of Technology

DOI: 10.1109/acc.2010.5530770

Abstract

This paper presents a review of two classical business approaches to inventory control. This is followed by a discussion of an engineering approach using Linear Quadratic Gaussian (LQG) control. The main result is to show that under certain conditions all three methods generate the same policy. Using the state-space model of the LQG formulation, we explore the multi-echelon system and model uncertainty cases.

Topics

Supply Chain and Inventory Management 0.99 Advanced Queuing Theory Analysis 0.93 Forecasting Techniques and Applications 0.90

Field: Business, Management and Accounting · Subfield: Management Information Systems

Keywords

Linear-quadratic-Gaussian control,Control (management),Linear-quadratic regulator,Control theory (sociology),State space,Optimal control,Gaussian,State (computer science),Computer science,Inventory control