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Stability of inventory dynamics in supply chains with three delays

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  • 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.

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  • 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
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    References listed on IDEAS

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    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).

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