IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v123y2010i1p107-117.html
   My bibliography  Save this article

Stability of inventory dynamics in supply chains with three delays

Author

Listed:
  • Sipahi, Rifat
  • Delice, Ismail Ilker

Abstract

Distinctive delays accounting for lead time in manufacturing, transportation of products and decision-making are considered in a single link supply chain that is modeled by continuous-time differential equations via system thinking. As seen in the literature, behavior of inventory variations in the presence of delays can become undesirably oscillatory. The novelty of this work is the analytical characterization of these oscillations with respect to two intrinsic parameters of the supply chain and the three delays considered separately. Particularly, inventory dynamics is characterized on the so-called stability maps drawn in the space of three delays, displaying which combinations of each delay lead to (un)desirable inventory behavior. Arising from the characterization is also a novel ordering policy design with which the inventory variations can be rendered insensitive to detrimental effects of delays. Case studies are provided along with managerial interpretations.

Suggested Citation

  • Sipahi, Rifat & Delice, Ismail Ilker, 2010. "Stability of inventory dynamics in supply chains with three delays," International Journal of Production Economics, Elsevier, vol. 123(1), pages 107-117, January.
    • Handle: RePEc:eee:proeco:v:123:y:2010:i:1:p:107-117
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(09)00270-9
    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. Disney, Stephen M. & Towill, Denis R. & Warburton, Roger D.H., 2006. "On the equivalence of control theoretic, differential, and difference equation approaches to modeling supply chains," International Journal of Production Economics, Elsevier, vol. 101(1), pages 194-208, May.
    2. 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.
    3. John D. Sterman, 1989. "Modeling Managerial Behavior: Misperceptions of Feedback in a Dynamic Decision Making Experiment," Management Science, INFORMS, vol. 35(3), pages 321-339, March.
    4. Beamon, Benita M., 1998. "Supply chain design and analysis:: Models and methods," International Journal of Production Economics, Elsevier, vol. 55(3), pages 281-294, August.
    5. Warburton, Roger D. H., 2004. "An exact analytical solution to the production inventory control problem," International Journal of Production Economics, Elsevier, vol. 92(1), pages 81-96, November.
    6. Warburton, R.D.H. & Disney, S.M., 2007. "Order and inventory variance amplification: The equivalence of discrete and continuous time analyses," International Journal of Production Economics, Elsevier, vol. 110(1-2), pages 128-137, October.
    7. Sterman, John D., 1989. "Misperceptions of feedback in dynamic decision making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 43(3), pages 301-335, June.
    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. Chiang, Chung-Yean & Qian, Zhuang & Chuang, Chia-Hung & Tang, Xiao & Chou, Chia-Ching, 2023. "Examining demand and supply-chain antecedents of inventory dynamics: Evidence from automotive industry," International Journal of Production Economics, Elsevier, vol. 259(C).
    2. Fu, Lingxian & Meng, Fanyong, 2020. "A human disease transmission inspired dynamic model for closed-loop supply chain management," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 134(C).
    3. Palsule-Desai, Omkar D. & Tirupati, Devanath & Chandra, Pankaj, 2013. "Stability issues in supply chain networks: Implications for coordination mechanisms," International Journal of Production Economics, Elsevier, vol. 142(1), pages 179-193.
    4. Lin, J. & Naim, M.M. & Purvis, L. & Gosling, J., 2017. "The extension and exploitation of the inventory and order based production control system archetype from 1982 to 2015," International Journal of Production Economics, Elsevier, vol. 194(C), pages 135-152.
    5. Ivanov, Dmitry & Sokolov, Boris, 2013. "Control and system-theoretic identification of the supply chain dynamics domain for planning, analysis and adaptation of performance under uncertainty," European Journal of Operational Research, Elsevier, vol. 224(2), pages 313-323.
    6. Svetoslav Nikolov, 2013. "Stability and Andronov-Hopf Bifurcation of a System with Three Time Delays," Journal of Mathematics, Hindawi, vol. 2013, pages 1-11, March.
    7. 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.
    8. Lin, Junyi & Naim, Mohamed M. & Spiegler, Virginia L.M., 2020. "Delivery time dynamics in an assemble-to-order inventory and order based production control system," International Journal of Production Economics, Elsevier, vol. 223(C).

    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. V.L.M. Spiegler & A.T. Potter & M.M. Naim & D.R. Towill, 2016. "The value of nonlinear control theory in investigating the underlying dynamics and resilience of a grocery supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 54(1), pages 265-286, January.
    2. Rich, Karl M. & Ross, R. Brent & Baker, A. Derek & Negassa, Asfaw, 2011. "Quantifying value chain analysis in the context of livestock systems in developing countries," Food Policy, Elsevier, vol. 36(2), pages 214-222, April.
    3. Warburton, Roger D.H. & Hodgson, J.P.E. & Nielsen, E.H., 2014. "Exact solutions to the supply chain equations for arbitrary, time-dependent demands," International Journal of Production Economics, Elsevier, vol. 151(C), pages 195-205.
    4. Lin, J. & Naim, M.M. & Purvis, L. & Gosling, J., 2017. "The extension and exploitation of the inventory and order based production control system archetype from 1982 to 2015," International Journal of Production Economics, Elsevier, vol. 194(C), pages 135-152.
    5. Ciancimino, Elena & Cannella, Salvatore & Bruccoleri, Manfredi & Framinan, Jose M., 2012. "On the Bullwhip Avoidance Phase: The Synchronised Supply Chain," European Journal of Operational Research, Elsevier, vol. 221(1), pages 49-63.
    6. Wen-Lung Shiau & Yogesh K. Dwivedi & Chia-Han Tsai, 2015. "Supply chain management: exploring the intellectual structure," Scientometrics, Springer;Akadémiai Kiadó, vol. 105(1), pages 215-230, October.
    7. 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).
    8. Wang, Xun & Disney, Stephen M., 2016. "The bullwhip effect: Progress, trends and directions," European Journal of Operational Research, Elsevier, vol. 250(3), pages 691-701.
    9. Hazhir Rahmandad & Nelson Repenning, 2016. "Capability erosion dynamics," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 649-672, April.
    10. Ma, Yungao & Wang, Nengmin & He, Zhengwen & Lu, Jizhou & Liang, Huigang, 2015. "Analysis of the bullwhip effect in two parallel supply chains with interacting price-sensitive demands," European Journal of Operational Research, Elsevier, vol. 243(3), pages 815-825.
    11. Hazhir Rahmandad, 2012. "Impact of Growth Opportunities and Competition on Firm-Level Capability Development Trade-offs," Organization Science, INFORMS, vol. 23(1), pages 138-154, February.
    12. F Ackermann & C Eden & T Williams & S Howick, 2007. "Systemic risk assessment: a case study," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(1), pages 39-51, January.
    13. Sadrieh, A., 2003. "Equity versus Warm Glow in Intergenerational Giving," Other publications TiSEM 89f19483-3c73-4838-854f-9, Tilburg University, School of Economics and Management.
    14. Jaksic, Marko & Rusjan, Borut, 2008. "The effect of replenishment policies on the bullwhip effect: A transfer function approach," European Journal of Operational Research, Elsevier, vol. 184(3), pages 946-961, February.
    15. Cannella, S. & Ciancimino, E. & Ashayeri, J., 2010. "On the Significance of Demand and Inventory Smoothing Interventions in Supply Chain," Other publications TiSEM 03de2e58-4ef5-40a3-96e1-6, Tilburg University, School of Economics and Management.
    16. Ghaffarzadegan, Navid & Xue, Yi & Larson, Richard C., 2017. "Work-education mismatch: An endogenous theory of professionalization," European Journal of Operational Research, Elsevier, vol. 261(3), pages 1085-1097.
    17. Catherine Durnell Cramton, 2001. "The Mutual Knowledge Problem and Its Consequences for Dispersed Collaboration," Organization Science, INFORMS, vol. 12(3), pages 346-371, June.
    18. Sarah Gerritsen & Sophia Harré & David Rees & Ana Renker-Darby & Ann E. Bartos & Wilma E. Waterlander & Boyd Swinburn, 2020. "Community Group Model Building as a Method for Engaging Participants and Mobilising Action in Public Health," IJERPH, MDPI, vol. 17(10), pages 1-12, May.
    19. Hendalianpour, Ayad & Liu, Peide & Amirghodsi, Sirous & Hamzehlou, Mohammad, 2022. "Designing a System Dynamics model to simulate criteria affecting oil and gas development contracts," Resources Policy, Elsevier, vol. 78(C).
    20. Angela Sutan & Radu Vranceanu, 2019. "Managerial Behavior in the Lab: Information Disclosure, Decision Process and Leadership Style," Working Papers hal-02291210, HAL.

    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:123:y:2010:i:1:p:107-117. 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.