A Production/Transaction-Related Model Using Control Theory

Abstract

In recent years, the need for wide-ranging kaizen/improvements has arisen in relationships with suppliers and other transaction partners in response to rising demands, including increases in profit and reductions in time. A method that results in such improvements is the application of a servo-mechanism control to manage inventory ordering. It is believed that if control theory is applied to the overall supply chain, it may enable an optimization of the supply chain, which fits the needs of modern society. This study proposes a prototype of the supply chain model of contemporary society, which applies the control theory and evaluates the validity of this model.