Supply chain dynamics

Abstract The application of system dynamics models to supply chains is reviewed. The most profitable area for system modelling and design concerns the demand amplification which is frequently observed in the medium-term operation of individual businesses, which behaviour is one manifestation of the Law of Industrial Dynamics. One cause of this amplification is the time delay incurred by both ‘value-added’ and ‘idle’ operations throughout the supply chain. Hence the management-inspired drive to reduce all cycle times throughout the business is also well directed from the total systems viewpoint, as is the removal of intermediate echelons from within the chain. However, the use of system dynamics models, as well as providing qualitative forecasts of predicted performance improvement from re-design, also enables the identification of more subtle mechanisms for achieving this objective. By means of an industrial example, it is shown that a significant contributory factor to demand amplification is interaction...

[1]  H. Simon,et al.  On the Application of Servomechanism Theory in the Study of Production Control , 1952 .

[2]  Herbert J. Vassian.  Application of Discrete Variable Servo Theory to Inventory Control , 1955, Oper. Res..

[3]  H. Scarf.  THE OPTIMALITY OF (S,S) POLICIES IN THE DYNAMIC INVENTORY PROBLEM , 1959 .

[4]  John L. Burbidge,et al.  The "new approach" to production , 1961 .

[5]  A. F. Veinott.  Optimal Policy for a Multi-product, Dynamic Non-Stationary Inventory Problem , 1965 .

[6]  Richard Edward DeWinter.  Inventory Applications of Servomechanism Models , 1966 .

[7]  D. P. Deziel,et al.  A linear production-inventory control rule , 1967 .

[8]  Gwilym M. Jenkins,et al.  Time series analysis, forecasting and control , 1972 .

[9]  MARK R. GARDNER,et al.  Connectance of Large Dynamic (Cybernetic) Systems: Critical Values for Stability , 1970, Nature.

[10]  Howard E. Thompson,et al.  Optimality of Myopic Inventory Policies for Certain Dependent Demand Processes , 1975 .

[11]  B. D. Sivazlian,et al.  Dynamic analysis of multi-echelon supply systems , 1978 .

[12]  J. Parnaby,et al.  Concept of a manufacturing system , 1979 .

[13]  Denis Royston Towill,et al.  Dynamic analysis of an inventory and order based production control system , 1982 .

[14]  R. G. Coyle.  Assessing the Controllability of a Production and Raw Materials System , 1982, IEEE Transactions on Systems, Man, and Cybernetics.

[15]  T. Jones,et al.  Using Inventory for Competitive Advantage through Supply Chain Management , 1985 .

[16]  Sven Axsäter,et al.  Control theory concepts in production and inventory control , 1985 .

[17]  M. Colclough.  The Strategy of Distribution Management , 1985 .

[18]  John B. Houlihan.  International supply chain management , 1985 .

[19]  Maurice Bonney,et al.  The application of discrete linear control theory to the analysis and simulation of multi-product, multi-level production control systems , 1987 .

[20]  Jane Edghill,et al.  Industrial case-study on the dynamics and sensitivity of a close-coupled production-distribution system† , 1988 .

[21]  Denis Royston Towill,et al.  Industrial dynamics model building of a close-coupled production-distribution system , 1988 .

[22]  D. R. Towill.  The dynamic analysis approach to manufacturing systems design , 1989 .

[23]  D. Sterman,et al.  Misperceptions of Feedback in a Dynamic Decision Making Experiment , 1989 .

[24]  G. Stevens.  Integrating the Supply Chain , 1989 .

[25]  M. C. Bonney,et al.  Design of production control systems: Choice of system structure and systems implementation sequence , 1989 .

[26]  Jane Edghill,et al.  The use of system dynamics in manufacturing systems engineering , 1989 .

[27]  P. Senge.  THE FIFTH DISCIPLINE , 1997 .

[28]  Eric F. Wolstenholme,et al.  System Enquiry: A System Dynamics Approach , 1990 .

[29]  Mohamed Mohamed Naim,et al.  Smoothing Supply Chain Dynamics , 1991 .

[30]  Denis Royston Towill,et al.  Engineering change; or is it change engineering? A personal perspective , 1991 .

[31]  A. Ackere,et al.  Systems thinking and business process redesign: An application to the beer game , 1993 .

[32]  E. A. Hall,et al.  How to Make Reengineering Really Work , 1994 .

[33]  Mohamed Mohamed Naim,et al.  Use of Statistical Techniques in the Dynamic Modelling of an Industrial Supply Chain , 1993 .