A theory of supply chains

DOI10.1007/978-3-642-18152-8MaRDI QIDQ1861950zbMATH OpenOpenAlexFDO

Authors Carlos F. Daganzo

Publication date 10 March 2003

Published in Lecture Notes in Economics and Mathematical Systems (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1007/978-3-642-18152-8

zbMATH Keywords

cost optimizationinventory-based policyorder-based policystability

Mathematics Subject Classification ID

Research exposition (monographs, survey articles) pertaining to operations research and mathematical programming (90-02) Inventory, storage, reservoirs (90B05) Traffic problems in operations research (90B20)

Review text

The author investigates supply chains, i.e., networks where suppliers produce goods for generic customers, possibly visiting intermediate suppliers and being altered or combined in the process. The output of each supplier is determined by a function of its inputs. The size of flows of different goods through the network depends on the customer demand, the flow of orders across suppliers, and on the policies that the suppliers use to place orders and replenish their inventories. The investigations are mainly restricted to a serial supply system where supplier \(j\) receives all its input from supplier \(j+1\) and ships all his goods to supplier \(j-1\). It is assumed that the order policy of supplier \(j\) is based exclusively on the order history of supplier \(j-1\) on the one hand and its own status on the other hand. The book investigates the instability of such policies, i.e., the increased variability of order sizes and inventory levels with the supplier as \(j\) increases. For analyzing the stability of order policies the concept of stability in the small and stability in the large (as considered in control theory) are introduced, where the former means that any infinitesimal perturbation in the customer demand input when the system is in a steady state generates only infinitesimal order size and inventory perturbations for any supplier \(j\), and the latter means that the order size and the inventory must be bounded for all \(j\) at any time. Necessary and sufficient conditions for policies assuring stability in the small are developed. Moreover, the class of strongly stable policies (being stable in the small and simultaneously in the large) is introduced and algorithms are proposed to determine such a policy in special cases. The techniques are partly taken from the field of traffic flow theory and its its connections to queuing theory are briefly outlined. The theoretic findings are illustrated by means of various examples. Finally, it is shown how to estimate the total cost and arrive at cost-optimal policies. In the concluding chapter some hints for generalizations are given.

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Cited in

(35)

• The bullwhip effect in supply chain networks
• Existence of solutions to Cauchy problems for a mixed continuum-discrete model for supply chains and networks
• Modeling and analyzing the chaotic behavior in supply chain networks: a control theoretic approach
• Robust modeling of appetite regulation
• Stabilization of supply networks with a varying manager-reaction time delay
• Benefiting from the economic recession? A supply chain perspective
• Optimal design of capacitated production networks
• Robust tests for the bullwhip effect in supply chains with stochastic dynamics
• A hydrodynamic modelling framework for production networks
• Numerical schemes and genetic algorithms for the optimal control of a continuous model of supply chains
• Time-dependent order and distribution policies in supply networks
• Dynamics of supply chains under mixed production strategies
• Enhancing supply chain performance with improved order-control policies
• Supply and production networks: from the Bullwhip effect to business cycles
• Early-stage firms and delay-based inventory control using decision-making tableaux
• Production systems with limited repair capacity
• Bounded growth of the bullwhip effect under a class of nonlinear ordering policies
• Modelling supply networks with partial differential equations
• Harmonious analysis of supply chain system
• A Network Model for Supply Chains with Multiple Policies
• Selection of ordering policies based on H_ norm computation in supply chain
• Technical note: Some structural results on acyclic supply chains
• Stabilization strategies of supply networks with stochastic switched topology
• scientific article; zbMATH DE number 2013753 (Why is no real title available?)
• Supply chains in life-science applications
• The stability of supply chains
• Revealing instabilities in a generalized triadic supply network: a bifurcation analysis
• On relaxation of state constrained optimal control problem for a PDE-ODE model of supply chains
• Structures of systems 1. cohomology of manufacturing and supply network-like systems
• Flow on Sweeping Networks
• On the Stability of Supply Chains
• Stochastic Dynamics of Long Supply Chains with Random Breakdowns
• Fractals, complexity and chaos in supply chain networks
• Modeling and optimization of scalar flows on networks
• The effect of information sharing on supply chain stability and the bullwhip effect

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