Robust Control Strategy for an Uncertain Dual-Channel Closed-Loop Supply Chain With Process Innovation for Remanufacturing

Abstract

The inventory and total cost control strategy are the core issue in all supply chains. When a supply chain includes parameter uncertainty, dual-channel and process innovation for remanufacturing (PIR), the system is complex so that its stability can’t be guaranteed easily. Therefore, how to manage the complex uncertain dual-channel closed-loop supply chain (CLSC) with PIR is a big challenge. The inventory and total cost control strategy for the CLSC with PIR is studied in this article. First of all, the uncertain mathematical model for the the CLSC with PIR is established based on the current inventory and total operation cost. Secondly, the model is converted to an uncertain multi-model according to different initial operation cases which is then described with a set of switching subsystem based on discrete Takagi-Sugeno(T-S) fuzzy model. Thirdly, a fuzzy robust $H_{\infty }$ control approach is introduced to restrain the bullwhip effect and deal with the impacts caused by parameter uncertainty. Meanwhile, the inventory and total operation cost control strategy of the CLSC system is also obtained by the $H_{\infty }$ control method. At last, three simulation tests are conducted to illustrate the effectiveness of the inventory control strategy.

Keywords

• Dual-channel closed-loop supply chain
• uncertain systems
• robust H∞ control
• process innovation in remanufacturing
• bullwhip effect
• inventory management