IDEAS home Printed from https://ideas.repec.org/a/eee/phsmap/v335y2004i3p644-660.html
   My bibliography  Save this article

Stability analysis and stabilization strategies for linear supply chains

Author

Listed:
  • Nagatani, Takashi
  • Helbing, Dirk

Abstract

Due to delays in the adaptation of production or delivery rates, supply chains can be dynamically unstable with respect to perturbations in the consumption rate, which is known as “bull-whip effect”. Here, we study several conceivable production strategies to stabilize supply chains, which is expressed by different specifications of the management function controlling the production speed in dependence of the stock levels. In particular, we will investigate, whether the reaction to stock levels of other producers or suppliers has a stabilizing effect. We will also demonstrate that the anticipation of future stock levels can stabilize the supply system, given the forecast horizon τ is long enough. To show this, we derive linear stability conditions and carry out simulations for different control strategies. The results indicate that the linear stability analysis is a helpful tool for the judgement of the stabilization effect, although unexpected deviations can occur in the non-linear regime. There are also signs of phase transitions and chaotic behavior, but this remains to be investigated more thoroughly in the future.

Suggested Citation

  • Nagatani, Takashi & Helbing, Dirk, 2004. "Stability analysis and stabilization strategies for linear supply chains," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 335(3), pages 644-660.
    • Handle: RePEc:eee:phsmap:v:335:y:2004:i:3:p:644-660
    DOI: 10.1016/j.physa.2003.12.020
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378437103011269
    Download Restriction: Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000
    File URL: https://libkey.io/10.1016/j.physa.2003.12.020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mizgier, Kamil J. & Wagner, Stephan M. & Holyst, Janusz A., 2012. "Modeling defaults of companies in multi-stage supply chain networks," International Journal of Production Economics, Elsevier, vol. 135(1), pages 14-23.
    2. Konishi, Keiji, 2010. "A tuning strategy to avoid blocking and starving in a buffered production line," European Journal of Operational Research, Elsevier, vol. 200(2), pages 616-620, January.
    3. Wang, Xun & Disney, Stephen M. & Wang, Jing, 2014. "Exploring the oscillatory dynamics of a forbidden returns inventory system," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 3-12.
    4. Li, Gang & Yang, Hongjiao & Sun, Linyan & Ji, Ping & Feng, Lei, 2010. "The evolutionary complexity of complex adaptive supply networks: A simulation and case study," International Journal of Production Economics, Elsevier, vol. 124(2), pages 310-330, April.
    5. Scholz-Reiter, Bernd & Tervo, Jan Topi & Freitag, Michael, 2006. "Phase-synchronisation in continuous flow models of production networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 363(1), pages 32-38.
    6. Lin, Junyi & Huang, Hongfu & Li, Shanshan & Naim, Mohamed M., 2023. "On the dynamics of order pipeline inventory in a nonlinear order-up-to system," International Journal of Production Economics, Elsevier, vol. 266(C).
    7. Kastsian, Darya & Mönnigmann, Martin, 2011. "Optimization of a vendor managed inventory supply chain with guaranteed stability and robustness," International Journal of Production Economics, Elsevier, vol. 131(2), pages 727-735, June.
    8. Ponte, Borja & Puche, Julio & Rosillo, Rafael & de la Fuente, David, 2020. "The effects of quantity discounts on supply chain performance: Looking through the Bullwhip lens," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    9. Helbing, Dirk & Treiber, Martin & Kesting, Arne, 2006. "Understanding interarrival and interdeparture time statistics from interactions in queuing systems," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 363(1), pages 62-72.
    10. Wang, Xun & Disney, Stephen M. & Wang, Jing, 2012. "Stability analysis of constrained inventory systems with transportation delay," European Journal of Operational Research, Elsevier, vol. 223(1), pages 86-95.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:phsmap:v:335:y:2004:i:3:p:644-660. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.