Combined optimization of shipping and storage costs in a multi-product and multi-level supply chain, under a stochastic demand

The increasing need for optimality in the presence of uncertainty motivates the development and application of Model Predictive Control. In this paper we apply the Stochastic Model Predictive Control to optimize the cost of storage and transport for a multi-product and a multi-level supply chain under a stochastic demand. We use the dynamic programming to find the control policies resolving the problem. © 2013 IEEE.