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Inventory replenishment rules contribute significantly to the bullwhip effect and inventory instability in supply chains. Smoothing replenishment rules have been suggested as a mitigation solution for the bullwhip effect but dampening the bullwhip effect might increase inventory instability. This paper evaluates a real-time inventory replenishment system denoted as SPC that utilizes a control chart...
A modeling approach based on traffic flow theory, that involves orders and delays in material flows for supply chains is presented. The resulting dynamic model is nonlinear and reflects basic phenomena of supply chains such as bullwhip effect due to delays on delivering materials. For control purposes a bounded PI control for inventory level regulation is considered. A stability analysis of the closed...
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