Coordinating control of production-inventory systems

In most cases real world subsystems for inventory and production control are designed according to very elementary control principles. In order to control the total system, some kind of coordinating control of the subsystems is needed. The approach pursued in this paper is to control the over-all-system by varying different control-parameters of the subsystems. The control system is therefore regarded as a two-level hierarchical system. Coordinating control is carried out with the aid of simple dynamic models based on aggregate terms. Problems concerning the identification of inventory-dynamics ore highlighted. In order to show how the models developed can be used efficiently for coordinating the control of an integrated production-inventory system, a simple control principle is applied to a simulated system.