Overview of MPC applications in supply chains: Potential use and benefits in the management of forest-based supply chains

Abstract

Aim of study: This work aims to provide an overview of Model Predictive Controllers (MPC) applications in supply chains, to describe the forest-based supply chain and to analyse the potential use and benefits of MPC in a case study concerning a biomass supply chain. Area of study: The proposed methods are being applied to a company located in Finland. Material and methods: Supply chains are complex systems where actions and partners' coordination influence the whole system performance. The increase of competitiveness and need of quick responses to the costumers implies the use of efficient management techniques. The control theory, particularly MPC, has been successfully used as a supply chain management tool. MPC is able to deal with dynamic interactions between the partners and to globally optimize the supply chain performance in the presence of disturbances. However, as far as is authors' knowledge, there are no applications of this methodology in the forest-based supply chains. This work proposes a control architecture to improve the performance of the forest supply chain. The controller is based on prediction models which are able to simulate the system and deal with disturbances. Main results: The preliminary results enable to evaluate the impacts of disturbances in the supply chain. Thus, it is possible to react beforehand, controlling the schedules and tasks' allocation, or alert the planning level in order to generate a new plan. Research highlights: Overview of MPC applications in supply chains; forest-based supply chain description; case study presentation: wood biomass supply chain for energy production; MPC architecture proposal to decrease the operation times.