Control theory approach of identifying bullwhip in supply chains

This paper discusses analyzing supply chain dynamics using control and signal theory tools. In the supply chain there is a forward and feedback flow of information. This information is used to draw causal loop diagram which in turn is used to develop the block diagram for the inventory control system. From the block diagram the Transfer function is derived and is then used to find the response of the system and also stability issues can be commented upon. Due to the lead time and other factors a bullwhip is experienced in supply chains. A method to identify the bullwhip using control and signal theory tools is also discussed.