IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v113y2008i2p619-625.html
   My bibliography  Save this article

Optimal feedback production for a two-level supply chain

Author

Listed:
  • Chan, Chi Kin
  • Lee, H.W.J.
  • Wong, K.H.

Abstract

The dynamics of a supply chain has been modelled by several authors, yet very few attempts have been made to find the vendor's optimal production policy when facing such dynamics. In this paper, we consider a two-level supply chain. We first model the dynamics of the retailer's problem as an infinite-horizon time-delayed control problem. By approximating the time interval [0,[infinity]) by [0,Tf], we obtain an approximated problem (P(Tf)) for the retailer, which can be solved easily by the control parametrization. Next, we extend this model to solving the manufacturer's problem. By assuming that the manufacturer has full knowledge of his demand throughout the time interval [0,Tf], which is equal to the retailer's optimal production rate in this time interval, he can solve his approximated problem to find his optimal production rate throughout [0,Tf]. Several examples have been solved to illustrate the efficiency of the method.

Suggested Citation

  • Chan, Chi Kin & Lee, H.W.J. & Wong, K.H., 2008. "Optimal feedback production for a two-level supply chain," International Journal of Production Economics, Elsevier, vol. 113(2), pages 619-625, June.
    • Handle: RePEc:eee:proeco:v:113:y:2008:i:2:p:619-625
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(08)00036-4
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

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

    References listed on IDEAS

    as
    1. Hafeez, K. & Griffiths, M. & Griffiths, J. & Naim, M. M., 1996. "Systems design of a two-echelon steel industry supply chain," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 121-130, August.
    2. John D. Sterman, 1987. "Testing Behavioral Simulation Models by Direct Experiment," Management Science, INFORMS, vol. 33(12), pages 1572-1592, December.
    3. Wikner, J. & Towill, D. R. & Naim, M., 1991. "Smoothing supply chain dynamics," International Journal of Production Economics, Elsevier, vol. 22(3), pages 231-248, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Hill, Alex & Doran, Des & Stratton, Roy, 2012. "How should you stabilise your supply chains?," International Journal of Production Economics, Elsevier, vol. 135(2), pages 870-881.
    2. Tianjian Yang & Weiguo Fan, 2016. "Information management strategies and supply chain performance under demand disruptions," International Journal of Production Research, Taylor & Francis Journals, vol. 54(1), pages 8-27, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yinhe Bu & Xingping Zhang, 2021. "On the Way to Integrate Increasing Shares of Variable Renewables in China: Experience from Flexibility Modification and Deep Peak Regulation Ancillary Service Market Based on MILP-UC Programming," Sustainability, MDPI, vol. 13(5), pages 1-22, February.
    2. Kim, Soo Wook & Park, Sangwook, 2008. "Development of a three-echelon SC model to optimize coordination costs," European Journal of Operational Research, Elsevier, vol. 184(3), pages 1044-1061, February.
    3. Fleisch, Elgar & Tellkamp, Christian, 2005. "Inventory inaccuracy and supply chain performance: a simulation study of a retail supply chain," International Journal of Production Economics, Elsevier, vol. 95(3), pages 373-385, March.
    4. Scavarda, Manuel & Seok, Hyesung & Puranik, Anurag S. & Nof, Shimon Y., 2015. "Adaptive direct/indirect delivery decision protocol by collaborative negotiation among manufacturers, distributors, and retailers," International Journal of Production Economics, Elsevier, vol. 167(C), pages 232-245.
    5. Ciancimino, Elena & Cannella, Salvatore & Canca Ortiz, José David & Framiñán Torres, José Manuel, 2009. "Análisis multinivel de cadenas de suministros: dos técnicas de resolución del efecto bullwhip // Supply Chain Multi-level Analysis: Two Bullwhip Dampening Approaches," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 8(1), pages 7-28, December.
    6. Nair, Anand & Closs, David J., 2006. "An examination of the impact of coordinating supply chain policies and price markdowns on short lifecycle product retail performance," International Journal of Production Economics, Elsevier, vol. 102(2), pages 379-392, August.
    7. Zhou, Li & Naim, Mohamed M. & Disney, Stephen M., 2017. "The impact of product returns and remanufacturing uncertainties on the dynamic performance of a multi-echelon closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 487-502.
    8. Stephan Billinger & Kannan Srikanth & Nils Stieglitz & Terry R. Schumacher, 2021. "Exploration and exploitation in complex search tasks: How feedback influences whether and where human agents search," Strategic Management Journal, Wiley Blackwell, vol. 42(2), pages 361-385, February.
    9. Roba W. Salem & Mohamed Haouari, 2017. "A simulation-optimisation approach for supply chain network design under supply and demand uncertainties," International Journal of Production Research, Taylor & Francis Journals, vol. 55(7), pages 1845-1861, April.
    10. S Sivadasan & J Smart & L Huaccho Huatuco & A Calinescu, 2010. "Operational complexity and supplier–customer integration: case study insights and complexity rebound," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(12), pages 1709-1718, December.
    11. Son, Joong Y. & Sheu, Chwen, 2008. "The impact of replenishment policy deviations in a decentralized supply chain," International Journal of Production Economics, Elsevier, vol. 113(2), pages 785-804, June.
    12. Wikner, Joakim & Naim, Mohamed M. & Spiegler, Virginia L.M. & Lin, Junyi, 2017. "IOBPCS based models and decoupling thinking," International Journal of Production Economics, Elsevier, vol. 194(C), pages 153-166.
    13. Naim, M.M. & Wikner, J. & Grubbström, R.W., 2007. "A net present value assessment of make-to-order and make-to-stock manufacturing systems," Omega, Elsevier, vol. 35(5), pages 524-532, October.
    14. Miragliotta, Giovanni, 2006. "Layers and mechanisms: A new taxonomy for the Bullwhip Effect," International Journal of Production Economics, Elsevier, vol. 104(2), pages 365-381, December.
    15. Holweg, Matthias & Bicheno, John, 2002. "Supply chain simulation - a tool for education, enhancement and endeavour," International Journal of Production Economics, Elsevier, vol. 78(2), pages 163-175, July.
    16. Gencer, Busra & van Ackere, Ann, 2021. "Achieving long-term renewable energy goals: Do intermediate targets matter?," Utilities Policy, Elsevier, vol. 71(C).
    17. Sabri, Ehap H. & Beamon, Benita M., 2000. "A multi-objective approach to simultaneous strategic and operational planning in supply chain design," Omega, Elsevier, vol. 28(5), pages 581-598, October.
    18. Crespo Marquez, Adolfo & Bianchi, Carmine & Gupta, Jatinder N. D., 2004. "Operational and financial effectiveness of e-collaboration tools in supply chain integration," European Journal of Operational Research, Elsevier, vol. 159(2), pages 348-363, December.
    19. Potter, Andrew & Mason, Robert & Naim, Mohamed & Lalwani, Chandra, 2004. "The evolution towards an integrated steel supply chain: A case study from the UK," International Journal of Production Economics, Elsevier, vol. 89(2), pages 207-216, May.
    20. Tobail Ayman & Crowe John & Arisha Amr, 2016. "Interactive learning: developing an eSimulation portal framework," The Irish Journal of Management, Sciendo, vol. 35(1), pages 17-33, April.

    More about this item

    Statistics

    Access and download statistics

    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:proeco:v:113:y:2008:i:2:p:619-625. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.elsevier.com/locate/ijpe .

    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.