Dynamic Modeling and Control of Production/Inventory System

This paper presents the system dynamics methodology for modeling and control the production/inventory system. Under system dynamics point of view, we can apply some production/inventory policies as if we use the control laws for dynamics systems, then the behavior of system is analyzed and evaluated to improve the performance of production/inventory system. We also utilize the hybrid modeling method for the dynamic of production system with the combination of Matlab/Simulink and Matlab/Sateflow. Finally, the numerical simulation results are carried out in Matlab/Simulink environment and compare with the results from other works. It is shown that our approach can obtain some good performances (such as operational cost, stability of inventory, customer service level).