Threshold-Type Control Policies and System Stability for Serial Supply Chain Systems
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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