Observed-based decision-making strategy of supply chain management under business disruptions

Abstract

This paper presents observer-based chaos suppression for a four-echelon supply chain system based on fractional order calculus. As the market information is usually distorted, nonlinear observers for supply chain model are implemented to accomplish chaos suppression using linear matrix inequality (LMI). Sufficient conditions for the observer-based schemes are established by using Lyapunov stability theory. The fractional calculus is utilised to provide superior dynamic performance for the controlled supply chain system over its integer-order counterpart. Numerical simulations are performed to validate robust performance and stability of observer-based supply chain management. Finally, it is found that the presented approach can help decision-makers develop effective supply chain networks under disruptions.

KEYWORDS:

• Supply chain system
• decision making
• fractional order calculus
• state observer
• chaos suppression
• linear matrix inequality

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This research was supported by the 4th Educational Training Program for the Shipping, Port and Logistics from the Ministry of Oceans and Fisheries.

Notes on contributors

Xiao Xu

Xiao Xu is currently working as a postdoctoral fellow in the Antai College of Economics and Management, Shanghai Jiao Tong University, China. He obtained his BS in Industrial Engineering in 2014 from the Dalian Nationalities University, China. He also obtained his MS in the Traffic and Transportation Engineering in 2016 from the Dalian Maritime University, China. He received his Ph.D. degree in the Department of Logistics Engineering at Korea Maritime and Ocean University, Busan, South Korea, 2021. His research interests include system optimisation using artificial intelligence, operation research, control theory, maritime logistics, smart port design, and supply chain management.

Truong Ngoc Cuong

Truong Ngoc Cuong holds B.Sc and M.Sc in Mechatronics engineering from Faculty of Mechanical Engineering, Ho Chi Minh City University of Technology, Vietnam in 2017 and 2019, respectively. He is currently working toward the Ph.D. degree in the Department of Logistics, Korea Maritime and Ocean University, Busan, South Korea. His research interests include operations research, control theory, system optimisation, supply chain management, and autonomous logistics.

Hwan-Seong Kim

Hwan-Seong Kim is a Professor at the Department of Logistics, Korea Maritime and Ocean University, Busan, South Korea. He received his BS and MS from Pukyong National University, Busan, South Korea, in 1991 and 1993, respectively. He received his PhD from Kumamoto University, Japan in 1996. He is also the Head of Center for Shipping, Port and Logistics. His main research interests are in the areas of optimisation and automation with fault detection and supervision techniques. Recently he is focusing on autonomous logistics with supply chain management (SCM). Also he has a deep interest for building of green and smart port.

Sam-Sang You

Sam-Sang You received his BE in Marine Engineering from Pukyong National University, Busan, South Korea; an MS in Mechanical Engineering from the University of Wisconsin–Madison, USA; and a PhD in Mechanical Engineering from the Iowa State University, USA, in 1983, 1991 and 1994, respectively. Since 1995, he has been with the Division of Mechanical Engineering of Korea Maritime and Ocean University, Busan, South Korea, where he is currently a full Professor. His research interests include system dynamics, optimisation, operations research, nonlinear control theory, engineering management, supply chain management and information systems.