Structure dynamics control approach to supply chain planning and adaptation

Abstract

Many of the existing methods and models of supply chain planning and control consider only one supply chain structure and assume it's more or less static in nature. In practice, supply chains have a multi-structural semantics and those multiple interrelated structures (organisational, functional, informational, financial, topological, technological, product, and energy structures) are dynamic and subject to many planned and disturbance-based changes. These changes are tackled by control activities which make planning an adaptive process. Although the supply chain optimal planning domain for static structures has been extensively investigated, the domain of planning and control of supply chains with structure dynamics merits more systematic and critical attention. In this study, an original form of supply chain representation as a dynamic system with changing multi-structural characteristics is developed. The structure dynamics control is a dynamic interpretation of the supply chain (re)synthesis process and aims at both advancing the supply chain (re)planning domain and enlarging the scope of the supply chain analysis domain that is currently rather limited. The developed approach is based on an optimal program control theory, active modelling objects, and structural–mathematical concept blended with mathematical programming. In this paper, we describe its basic features and exemplify possible applications and extensions regarding real planning and control problems faced by international supply chains in recent years.